About Formal Construction of Financial Analysis

Mapping the geographic distribution of the economic viability of photovoltaic load displacement projects in SW USA

XYZ restaurant is a takeaway restaurant offering homemade Indonesian dishes located in Amsterdam. After 3 years of operating, restaurant XYZ realized that the majority of customers pick noodles as their most favorite dish, which tends to sell out every day. The restaurant identified an opportunity to focus on noodle-based dishes by establishing a Warung Mie concept store in Amsterdam. This decision is supported by Amsterdam's status as an international city with a diverse culinary scene and the potential growth of the noodle market in the Netherlands. Moreover, many Dutch people are familiar with Indonesian cuisine. The project requires an initial investment of €154,062. Therefore, before implementing the project, the owner would like to analyze its feasibility and associated risks, which is the purpose of this study. There are five stages in constructing the feasibility study: constructing pro forma financial statements, calculating the weighted average cost of capital, calculating free cash flow to the firm (FCFF), conducting a financial feasibility analysis, and performing a risk assessment. The tools used to assess feasibility include the payback period (PP), net present value (NPV), internal rate of return (IRR), and profitability index (PI). Moreover, sensitivity analysis is used to conduct the risk analysis and assess the project's resilience to changes in key variables. Based on the market and financial analysis, the project is feasible and will generate profit in the future. The payback period would be 5 years, 1 month, and 3 days; NPV is €210,176; IRR is 19.5%; and PI is 2.4. The sensitivity analysis highlights that variations in total sales are the most impactful variable to the NPV, followed by salaries and wages. Therefore, restaurant XYZ is advised to focus on improving total sales. Additionally, implementing effective financial monitoring and control systems will help manage sales and salary expenses efficiently, mitigating potential risks associated with fluctuations in these variables.

Aquaculture in Floating Net Cage (FNC) is one of the reliable aquaculture technologies that is used to optimize the utilization of waters on rivers, lakes and reservoirs. The types of fish that is usually preserved in Floating Net Cage are Gold Fish ( Cyprinus carpio ) and Nile Tilapia ( Oreochromis niloticus ). Survey method is applied in this research and data sample is drawn from the farmer population of floating net cages in Kecamatan Pinoh Utara. The objective of this study is to determine the financial feasibility of aquaculture with Floating Net Cage (FNC) system. This achieved by considering Net Present Value (NPV), IRR (Internal Rate of Return), Net Benefit-Cost Ratio (B/C Ratio), Analysis of PP (Payback Periods) and Sensitivity Analysis. The result indicates that aquaculture of Nile Tilapia and Gold-Fish with Floating Net Cage (FNC) system was financially significant shown by Net Presents Value (NPV) 227.246.769,84 rupiahs, Internal Rate of Return (IRR) 190,97%, Net Benefit Cost ratio (B/C Ratio) 4,34 and Payback Periods (PP) 0,53 years (6 months 10 days). The sensitivity analysis indicates that if there was an increase in operational costs, the amount should not be more than 304,19% and if there was a decrease in profits, the amount should not be more than 44,11%. Keywords: Financial Analysis, Aquaculture, Floating Net Cage, Net Present Value (NPV), Internal Rate of Return (IRR), Net Benefit-Cost Ratio (B/C Ratio).

Accepting as a basic premise the importance of capital investment decisions for the firm and the significance of risk and uncertainty in forward planning, the research study reviews investment decision theory and examines alternative modifications to this theory to accommodate risk and uncertainty. Recommended modifications to data input, methods of project evaluation, and reporting produce a programme which varies significantly from generally accepted investment theory and practice. Risk and uncertainty is explicitly recognised through their influence on input variables: investment outlays, lifespans, volume of project outputs, selling prices and variable costs per unit of volume, period fixed costs, reinvestment opportunities and residual benefits. In the programme, a range of values (with subjective probabilities for each value) is determined for each input variable. Uncertainty is converted to a risk-equivalent situation. Input data is analysed initially using a Monte Carlo technique to simulate profitability and each range of data is further reduced to an expected value to form the basis for profitability calculations and an evaluation of investment sensitivity to changes in input variables. In both the simulation and sensitivity analyses, four indexes are used to measure investment profitability - internal rate of return, internal rate of return modified to incorporate explicit reinvestment opportunities, accounting rate of return, and the payback calculation. In reporting the results of simulation and sensitivity analyses, extensive use is made of graphs. After illustrating the programme of analysis with a theoretical investment project, the programme is evaluated on the basis of eight case studies - investment projects currently under consideration by executives of Australian manufacturing companies. Experience with the case studies leads to the following conclusions:1) The significance of investment risk and uncertainty is identified for decision-makers if projects are evaluated with a programme incorporating simulation and sensitivity analyses.2) The investment analysis programme provides valuable information for management not currently available from methods in use by accounting executives of Australian manufacturing companies.3) Ranges of values for input variables are readily obtainable from accounting, production and sales executives. Little difficulty is found in assigning subjective probabilities to ranges of values.4) An internal rate of return analysis which explicitly considers reinvestment opportunities, and rule-of-thumb methods of analyses have an important role in identifying risk and uncertainty for investment decisions. When the results of analyses are presented as graphs, management interpretation of these analyses is assisted and subsequent decision-making is most effective.5) Widespread acceptance and implementation of the recommended investment analysis programme by members of the accounting profession must depend on current and future educational policies of professional bodies producing financial executives with a sound knowledge of computer mathematics, statistics and financial analysis.

Fruits and vegetables are horticultural commodities that have the potential to be developed. Pineapple and carrot are superior commodities that can be developed into juice drinks. The development of this juice product needs to pay attention to the financial feasibility of the business. This study will analyze the financial feasibility analysis using NPV, IRR, BC ratio, PBP, BEP methods. Financial feasibility analysis shows the Payback Period (PP) value of 2 years 7 months, Net Present Value (NPV) of IDR 102.128.626, Internal Rate of Return (IRR) of 17,29%, and B/C ratio of 1,04. Based on the results of the financial feasibility assessment, pineapple carrot juice business is feasible to run.

General Background: Investment decisions in the oil sector require rigorous financial evaluation due to high capital intensity, long project life cycles, and exposure to price volatility. Specific Background: In the Iraqi oil sector, project appraisal practices often rely on limited or uneven application of modern financial analysis tools, despite their relevance for large-scale field development. Knowledge Gap: Empirical evidence remains insufficient regarding how integrated financial indicators systematically inform project evaluation and decision-making under Iraq’s specific operational and institutional conditions. Aims: This study examines the role of financial analysis in improving project evaluation decisions through an applied case study of the Majnoon Oil Field, focusing on Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. Results: The findings indicate a positive NPV exceeding USD 1.8 billion, an IRR of approximately 17% above the assumed discount rate, and an acceptable payback period, confirming the project’s economic feasibility despite cost and price uncertainties. Novelty: The study integrates theoretical financial analysis with a context-specific applied model tailored to the Iraqi oil environment, linking quantitative indicators directly to development and investment decisions. Implications: Strengthening financial analysis frameworks and integrating them with technical data can enhance evaluation accuracy, improve resource allocation efficiency, and support more reliable investment decisions within national oil companies.Highlight : Financial analysis tools support feasibility assessment in capital-intensive oil projects. The Majnoon Oil Field case shows the role of indicators under price volatility. Financial analysis strengthens investment decisions and resource allocation. Keywords : Financial Analysis, Oil Project Evaluation, Majnoon Oil Field, Investment Decision, Financial Indicators

FinTech field began to develop rapidly since 2008, after the Global Financial Crisis. This was due to the fact that financial institutions could not quickly respond to consumer needs because of a number of regulatory and legislative restrictions that were implemented to overcome the consequences of the crisis. At the same time the main factors of FinTech development were technological evolution, emerging customer expectations, availability of funding and capital, and support from governments and regulatory authorities. FinTech makes traditional financial services more affordable, flexible and secure, and therefore FinTech is one of the main drivers of digital transformation of the whole financial sector and the development of financial accessibility in the world. The development of the FinTech industry has a huge influence on the financial sector. FinTech strives to make financial services more accessible for both consumers and businesses. FinTech companies are fast growing and attract a large amount of investment each year in their development. At the same time, traditional financial institutions feel threatened on their part, because with the increasing number of FinTech companies, competition in the financial services market is growing too. In order to stay on the market, traditional banks are forced to adapt to modern realities and develop cooperation with FinTech companies. FinTech companies can help banks provide financial products and services more effectively and strengthen their competitive advantages. For example, they can improve financial inclusion, enhance customer experience, increase transparency, improve security, and provide support and guidance. Thus, financial institutions in cooperation with FinTech companies are able to provide new financial products and services to groups of customers who previously did not have access to traditional financial services. In addition, thanks to new technologies, financial institutions can offer personalized services and communicate online with customers, which significantly increases their engagement and experience. Furthermore, FinTech companies can help financial institutions detect fraud and deal with cyber-attacks and other online risks. Keywords: FinTech, financial technologies, financial services, financial innovations, FinTech adoption.

Postharvest food loss and waste offset worldwide agricultural productivity and food security. Insufficient drying and storage are the prominent drivers of food loss and waste in underdeveloped countries. Mechanical grain drying systems have distinct benefits over sun drying but are inaccessible to underserved communities due to high capital costs and energy demand. This study evaluated the techno-economic and financial performance of a half-ton-capacity BAU-STR dryer. The moisture extraction rate, drying rate, drying efficiency, and energy consumption were used as technical performance indicators. In contrast, the net present value (NPV), internal rate of return (IRR), benefit–cost ratio (BCR), and payback period were considered economic performance indicators. The technical performance analysis results revealed that the moisture content of rice was reduced from 19.5% to 13.5 ± 0.15% in 4.0 h with an average drying rate of 1.5%/h and a drying efficiency of 75.1%. The financial performance analysis resulted in a drying cost, NPV, IRR, BCR, and PBP of USD 0.96 per 100 kg of grain, USD 3018, 135%, 3.0, and 0.73 yr., respectively, when the annual use was 240 h. If the yearly use of the dryer increased from 240 to 720 h, a higher NPV, IRR, and BCR, as well as a lower payback period and drying cost, could be achieved. Adopting a BAU-STR dryer for drying grain (rice and corn) among underserved communities could play a key role in postharvest food loss and waste.

The article examines the essence and strategic directions of digitalization in the financial and insurance services market. It is established that digitalization in the financial and insurance sectors is not only a technological trend, but also a key factor in strategic development. The rapid development of modern technologies significantly affects the financial and insurance services market, changing both the financial products themselves and the principles of their use and distribution methods. In today's conditions of global digitalization of the world, the dynamic development of the country's economy and financial market requires the implementation of an effective mechanism for their functioning and the use of a set of innovative scientific approaches. It is proven that in today's conditions, the digitalization of financial and insurance services means the transition from traditional forms of service to the implementation of the latest electronic technologies. The article defines the essence and analyzes the Digital Transformation Index of Ukraine. In Ukraine, the digitalization of the financial and insurance market is becoming a driving force for the transformation of financial practices and increasing the efficiency of financial process management. This contributes to increasing the availability and quality of services, reducing their cost for consumers, and the overall development of the financial sector. A study of the key components of InsurTech was conducted and it was found that the advantages of this type of insurance are convenience in registration, minimization of papers and availability anywhere in the world. It was determined that FinTech is a set of innovative digital technologies used to carry out financial activities and provide financial services. In the insurance services market, in the context of digitalization, the InsurTech direction has become relevant as a modern form of providing insurance services in an online environment. In the context of strategic directions of digitalization in the financial and insurance services market, we note that the key ones are the implementation of digital identification and the implementation of electronic document management, the development of FinTech and InsurTech, the transition to cloud technologies and the strengthening of cybersecurity and personal data protection. Further expansion of the integration of FinTech and InsurTech solutions into the financial ecosystem is expected in the near future.

This research aims to analyze the costs, income, profits, and level of sensitivity of citronella farming in the Kalumpang Saiyo farming group in Solok City. The method used in this research is a case study. The sampling method is purposive sampling, where farmer groups are selected based on specific criteria. The data analysis used is quantitative analysis to analyze the costs incurred for activities starting from investment costs, production operations, and financial analysis used to determine whether or not farming is feasible using investment feasibility criteria, namely Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (B/C Ratio). Sensitivity analysis is used to determine the level of business sensitivity to changes in parameters used in increasing production costs (10%, 15%, and 23.36%), decreasing benefits (10%, 15%, and 18.36%), as well as increasing production costs and reduced benefits (10% and 10.46%). The research showed that the citronella farming business that was run survived up to an increase in production costs of 23.36%. The farming business also survived up to a decrease in benefits of 18.96%. It survived up to conditions of an increase in production costs of 10.46% and a reduction of benefits of 10.46%, coinciding. Keywords: Sensitivity, Financial, Citronella Grass, Feasibility Abstrak Penelitian ini bertujuan untuk menganalisis biaya, pendapatan, keuntungan dan tingkat sensitivitas usahatani seraiwangi di kelompoktani Kalumpang Saiyo, Kota Solok. Metode yang digunakan dalam penelitian ini adalah studi kasus. Metoda pengambilan sampel adalah purposive sampling, dimana kelompok tani dipilih berdasarkan kriteria tertentu. Analisis data yang digunakan adalah analisis kuantitatif untuk menganalisis biaya-biaya yang dikeluarkan untuk kegiatan mulai dari biaya investasi, operasional produksi dan analisa keuangan yang digunakan untuk mengetahui layak atau tidaknya usahatani dengan menggunakan kriteria kelayakan investasi adalah: Net Present Value (NPV), Internal rate of Return (IRR), Benefit Cost Ratio (B/C Ratio) dan analisis sensitivitas digunakan untuk mengetahui tingkat sensitivitas usaha terhadap perubahan parameter yang digunakan pada kenaikan biaya produksi (10%, 15% dan 23,36%), penurunan benefit (10%, 15% dan 18,36%) serta peningkatan biaya produksi dan penurunan benefit (10% dan 10,46%). Hasil penelitian menunjukkan bahwa usahatani seraiwangi yang dijalankan mampu bertahan sampai pada peningkatan biaya produksi sebesar 23,36%, lalu usahatani mampu bertahan sampai pada penurunan benefit sebesar 18,96% dan mampu bertahan sampai pada kondisi peningkatan biaya produksi sebesar 10,46% dan penurunan benefit sebesar 10,46% terjadi secara bersamaan.

The most crucial global issue discussed at the Fourth Intergovernmental Review Meeting on the Implementation of the Global Program of Action for the Protection of the Marine Environment from Bali Land Based Activities (IGR-4) in 2018 is the danger of detergent. Up to 45% of Indonesia’s rivers are in the category of being heavily polluted by detergent. Furthermore, Enzymatic Eco Detergent is a new, renewable, and innovative biodegradable product made from vegetable surfactants based on palm oil (MES). It is also enriched with organic enzymes produced by simple biotechnology from processing organic waste, such as fruits and vegetable peels, based on garbage enzyme/eco-enzyme. And it also has excellent potential to be developed on a micro business scale (Start-up). As a new product, conducting a business feasibility analysis is necessary to reduce the risk of failure or loss. Therefore, this study aims to analyze the feasibility of the Eco Detergent factory start-up business with a capacity of 12,000 liters per year based on a financial analysis involving the Payback Period, Net Present Value, Internal Rate of Return, and Return on Investment. The data obtained were analyzed using Microsoft Excel 2013 software. The result showed that the payback period (PP) is three years (2 years and 3 months) faster than the project age of 5 years, hence the Green detergent start-up project, "Enzymatic Eco Detergent," is feasible to be implemented. Meanwhile, the Net Present Value (NPV) criteria have a positive IDR of 1,117,448,350.97. The Internal Rate of Return (IRR) and the Return on Investment (ROI) obtained are 57.57% and 54%, respectively. Conclusively, the investment is considered profitable with a return rate of 10.37%, hence, it is feasible to be implemented.

Summary Following identification of potential productivity gains from post-thinning fertilizer treatments (N+P) in NSW Pinus radiata plantations, financial analyses are undertaken for treatment of defined resource strata. Deterministic and stochastic approaches are employed in the estimation of key financial indicators. The latter technique enables risk (variation in cost and revenue parameters) to be explicitly addressed by definition of probability distributions describing the cost of fertilization, productivity gains due to fertilization, product mixes and prices and the difference between rates of inflation for costs and revenues. Monte Carlo simulation techniques are employed to generate probability distributions for Net Present Value (NPV), Benefit/Cost Ratio and Internal Rate of Return (IRR). Investments are compared on the basis of the expected values of NPV, B/C ratio and IRR and associated cumulative probability distributions. The methodology enables forest managers to routinely evaluate investment options on a site, plantation and market specific basis. Post-thinning fertilization of P. radiata plantations is demonstrated to be a potentially successful investment strategy (expected rates of return exceeding 8%) but the financial performance of fertilizer treatments within different resource strata varies considerably (mean NPV's between $62 ha −1 and $1169 ha1 from the stochastic model). This variation highlights the need for careful treatment selection and prioritization to maximise net benefits. Sensitivity analyses reveal that sawlog prices and volume gain (due to fertilization) are the main factors influencing investment performance. The “risk adverse” nature of many of the component distributions (volume gain and product mix) meant that expected values of the performance measures were lower under the stochastic simulation than calculated by the deterministic approach and rankings of investments were slightly modified when investment risk was considered. Under four of the five investment strategies there is at least a 90% probability that an IRR of 8% will be achieved.

Retrospective benefit-cost analysis of bovine brucellosis control in the state of Mato Grosso, Brazil.

This research was located at Yu Mudah’s tempe chips MSME in Pliken Village, Kembaran District, Banyumas Regency. This research was conducted using project evaluation approach to determine the costs, revenues, and financial analysis (Net Present Value (NPV), Profitability Index (PI), Internal Rate of Return (IRR), and Payback Perioed (PBP)), so it can be seen as feasibility or unfeasibility business that has been run by the UKM. The data used are primary data from interviews with business owners.The analysis of data include the costs, revenues,and financial analisys (NPV, PI, IRR, and PBP).The results showed that the invesment cost amount of Rp. 19.685.000,00 over the life of the project (10 years), fixed costs and variabel costs amounting to Rp. 10.693.500,00 and Rp. 217.175.000,00 for each year. Revenues each year amounting to Rp. 252.000.000,00. The business is feasible to run. This can be seen from the NPV value of Rp. 164.438.345,00, PI of 1,09, IRR of 123%, and PBP of 10,3 months.

The purpose of present study is to analyse the relative importance of intellectual capital (IC) components in financial performance measures, i.e., productivity, profitability and market valuation respectively. For this purpose, banking informational technology, textile and pharmaceutical industry has been chosen for the study. The results of the panel regression analysis show that IC has a significant impact in increasing the profitability and market valuation of both sectors. The structural capital is not having any significant role to play in increasing the market valuation of both sectors. The results further found that human and structural capital in manufacturing sector shows a negative association with productivity of the companies. The study also found that physical capital is the strongest component in explaining the financial performance and market valuation of both sectors. It is advisable to managers to take more active role in encouragement of development of IC.