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Estimating the value of coal properties using Lotus 1-2-3
Published in Y.J. Wang, R. Larry Grayson, Richard L. Sanford, Use of Computers in the Coal Industry, 2020
Timothy Sugrue, Frederick C. Scherr
The final step is to perform the calculations necessary to evaluate the expected cash flows based on the required return. To do this, the expected cash flows are divided by one plus the required return to the power of the year of the flow. These contributions to net present value are then summed. That is, the following formula is executed: RANPV=∑t=0NE(NCFt)(1+K)t where RANPV is the risk-adjusted net present value, t designates the period involved, N is the life of the project, E(NCFt) is the expected net cash flow in period t, and k is the yearly required rate of return. For example, for cash flow set A in Table 1 and a fifteen percent year discount rate, the RANPV would be: RANPV = -$10,000/(1.15)0 +$15,000/(1.15)1 +50300/(1.15)2 = -$10,000(1.00)+$15,000(.8696)+$5,0000561) = $6,824
Theoretical and empirical approaches to quantitatively valuing research
Published in Theoretical Issues in Ergonomics Science, 2019
The BEA results and data in the national accounts are too diffuse to be used for valuing individual research projects. However, if the research has a practical aim in view, and if there are sufficient data about the development paths and costs of maturing similar research into a product, then it can be valued using standard financial tools. The pharmaceutical industry, and assorted consultants and investors who work with and for them, have amassed such data, and arrived at consensus methods for valuing their Applied Research and Experimental Development28 assets. The method has been called risk adjusted net present value (rNPV), and is used for the purpose of (i) managing resources allocated to Applied Research and Experimental Development, and (ii) pricing transactions for products still under development.