Key aspects of investment analysis

Nábrádi, András; Szöllősi, László

doi:10.19041/apstract/2007/1/7

Cited by 6 publications

(4 citation statements)

References 3 publications

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“…Evaluation Assuming NPV > 0, the investment is feasible Assuming NPV < 0, the investment is not feasible as it incurs the losses of assets. Assuming NPV = 0, return on our investment is generated once Nábrádi and Szőllősi (2007) discussed the special features of NPV calculations in their study. They claimed that inflation, risk and other factors would be reasonably included in the calculation of the interest rate.…”

Section: Methods Of Calculationmentioning

confidence: 99%

Study on the potential of subcontract palinka distillation

Harcsa

2017

Ekon Polj

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Hungary has a centuries-long palinka distilling tradition. Palinka is prepared by the traditional method of "Kisusti" or the more economical single-step technology. Methods for the improvement of the quality and cost-efficiency of palinka preparation will include investments into an up-to-date technology, the focal point of my investigation in the present paper in terms of economic indicators (net present value), internal rate of return, profitability index and discount rate time. The calculations assessed several (optimistic, realistic and pessimistic) scenarios. Legislative changes have exerted a considerable impact on the turnover of palinka distilleries, and the re-introduction of the excise tax for subcontract distilling has resulted in frequent changes since 2010 and indicated an unpromising tendency. A further problem concerns dependence on agricultural source material production (fruit production) and the existence of home distilling. In conclusion, beneficial economic conditions will be the key elements in the implementation of the investment mentioned above.

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Section: Methods Of Calculationmentioning

confidence: 99%

Study on the potential of subcontract palinka distillation

Harcsa

2017

Ekon Polj

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“…The average investment lifetime is determined generally as 15 years. The analyses based on the most probable realistic scenario, the uncertainty in operation and calculation was handled, based on the recommendation of Nábrádi and Szőllősi (2007), with the help of sensitivity analyses (scenario analyses, elasticity calculations, critical values calculations). At the end of the investment's lifetime, the calculation of model B and C included the residual value of the postharvest infrastructure, where the value is determined as the probable market value.…”

Section: Methodsmentioning

confidence: 99%

The economic efficiency of apple production in terms of post‑harvest technology

Szabó

2014

APSTRACT

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This study analyses how the level of postharvest technology's development influences the economic efficiency of apple production with the help of a deterministic simulation model based on primary data gathering in producer undertakings. To accomplish our objectives and to support our hypotheses three processing plant types are included in the model: firstly apple production with no postharvest and prompt sale after the harvest, secondly parallel production and storage combined with an extended selling period and thirdly production and entire postharvest infrastructure (storage, sorting-ranking, packing) with the highest level of goods production and continuous sales. Based on our results it can be stated that the parallel production (plantation) and cold storage, so the second case is proved to be totally inefficient, considering that the establishment of a cold storage carries enormously high costs with resulting a relative low plus profit compared to the first type of processing plant. The reason for this is that this type is selling bulk goods without sorting-grading or packaging; storage itself -as a means of continuously servicing the market -is not covered properly by the consumers. Absolute efficiency ranking cannot be established regarding the other two processing plants: plantation without post-harvest infrastructure resulting lower NPV, but a more favourable IRR, DPP and PI as developing a plantation and a whole post-harvest infrastructure.

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“…There are several indicators available for investment profitability analysis, but dynamic indicators provide the most precise results (Szûcs, 2004, Nábrádi and Szôllôsi, 2007, Brealey et al, 2006. From these NPV (Net Present Value), DPP (Discounted Payback Period) and IRR (Internal Rate of Return) are evaluated.…”

Section: Methodsmentioning

confidence: 99%

Cost and profit analysis of sour cherry production for industrial purposes in Hungary

Apáti

Nyéki

Szabó

et al. 2010

Int. j. hortic. sci.

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Our main objective in this present study is to evaluate the profitability and efficiency of sour cherry production by a complex economic analysis of its technological process. We concluded that the per kilogram prime costs range between 80 to 90 HUF/kg in case of sour cherry for industrial purposes. On this basis, it is clear that the 50 to 90 HUF/kg regular selling prices of previous years do not make profitable production possible. Under the present market conditions even considering per hectare average yields of 10 to 15 tons the establishment of sour cherry orchards is not economical, the internal rate of return is below the interests of money-market and the recovery will not be happened even during the whole life-time of the orchard. In this way the domestic enterprises should not only raise the yields but realize technological changes (e.g. mechanic harvesting) in order to decrease the production costs in a significant way and to maintain a profitable sour cherry production. It is expected that the enterprise farming on great land (several ten hectares), being settled for mechanic harvesting (subordinating everything to this), reaching yields of 15 to 20 tons per hectare, producing on high technological and input levels, having specialized knowledge will stay on the sour cherry market far in the future.

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Key aspects of investment analysis

Cited by 6 publications

References 3 publications

Study on the potential of subcontract palinka distillation

Study on the potential of subcontract palinka distillation

The economic efficiency of apple production in terms of post‑harvest technology

Cost and profit analysis of sour cherry production for industrial purposes in Hungary

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