• Proceedings of the Korea Technology Innovation Society Conference
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• 2001.11a
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• pp.307-337
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• 2001

In this paper, we propose the valuation frame of the IT(Information Technology) ventures using ROV(Real Options Valuation) model. Generally, ROV can comprises the traditional valuation method such as DCF(Discounted Cash Flow), which can measure only the tangible value of a firm from the expected future earnings, in that ROV can additionally measure the intangible value such as the strategic value of a firm in the uncertain environment. We set up the hypothetic IT venture future investment plan and assume that there are a growth option and a switching option consequently along the investment time horizon, which are caused by each characteristics of ventures and IT technologies, especially modularity. In the case that there are several embedded real options in the firm's investment plan in a row, we should apply the compound option pricing model as a real option valuation model in order to consider the value interaction between real options. In an addition, we present the results of optimal investment timing analysis using real options approach and compare them. with those of the original assumed investment timing.

• Journal of Construction Engineering and Project Management
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• v.7 no.1
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• pp.1-12
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• 2017

Construction delay is one of the basic constrains to achieve the project objectives in developing countries. This study aims to find the causes and effects of construction delays in developing countries. A thorough literature review has been done following the content analysis method. The relevant literature of 28 developing countries was collected from the scholarly journals published in the period of 2006 to 2016. The different developing countries are grouped into three geographic regions, i.e. South and Southeast Asia, Middle East, and Africa. In these regions, total 53 potential causes of delay under 8 major groups are identified. Frequency and ranking of these factors have been done. The factors, delay in progress payment by owner, contractors' cash flow problem, improper planning and scheduling, poor site management, and change order by owner during construction, are acknowledged as critical causes of delay in developing countries. This study will assist both academic and professional experts providing more insight about the construction delays and project management in developing countries.

• Proceedings of the Safety Management and Science Conference
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• 2003.11a
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• pp.129-142
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• 2003

The SCM is that Supply Chain Network is Promptly and Voluntarily Optimized in Unstable Market Change Environment. The Cash flow Efficiency of Hole Supply Chain Network is Improved by Changing the Information and Changing the Foundation of Business Processes. The Role of WMS has been Changing Importantly with the Introduction of SCM. WMS Needed to Change to the Information Center in Order to Change Information in Real Time and the WMS of Information Storing in Order to Support an Idea Decision. This Development was Defined about the Importance of WMS in SCM Environment. The Criterion of Valuation is Normally Measured Time between Taking a Order Receive and Bringing the Items to Customer. The Decreasing Move Time of Order Picker in Warehouse is Directly Influence to the Job Execution. So, this Research is Defined about the Optimized Route of Order Picker and Suggests Algorithm. To do this, Past Algorithm is Studied. It's Easy to Introduce and this Study is Looking for Method about the Noticing of Order Picker. The Algorithm will Improve to be Adapt to Standard Process System.

• Korean Journal of Air-Conditioning and Refrigeration Engineering
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• v.14 no.2
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• pp.134-142
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• 2002

LCC (Life-Cycle Cost) analysis is a practical method and a guideline for evalua-ting the economic performance of building service systems. By using the LCC analysis, the most cost-effective design decision can be made, which has the lowest LCC during the project study period among the various design alternatives. The present case shows an example of appro-priate use of the LCC analysis, by demonstrating the procedures of decision making among at-tarnative building HVAC systems at community center and congress hall of a local government.

• Environmental and Resource Economics Review
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• v.13 no.4
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• pp.735-761
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• 2004

As a possible alternative to Traditional Discounted Cash Flow Method, "Option Pricing Model" has drawn academic attentions for the last a few decades. However, it has failed to replace traditional DCF method practically due to its mathematical complexity. This paper introduces an option pricing valuation model specifically adjusted for the natural resource development projects. We add market information and industry-specific features into the model so that the model remains objective as well as realistic after the adjustment. The following two features of natural resource development projects take central parts in model construction; product price is a unique source of cash flow's uncertainty, and the projects have cost structure from capital-intense industry, in which initial capital cost takes most part of total cost during the projects. To improve the adaptability of Option Pricing Model specifically to the natural resource development projects, we use Two-Factor Model and Long-term Asset Model for the analysis. Although the model introduced in this paper is still simple and reflects limited reality, we expect an improvement in applicability of option pricing method for the evaluation of natural resource development projects can be made through the process taken in this paper.

• Journal of Korea Technology Innovation Society
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• v.11 no.2
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• pp.241-263
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• 2008

Within any income approach, a discount rate is used to convert some projected free cash flow to its presented value. In case of valuing companies, the most frequently used discount rate is the weighted average cost of capital(WACC) at the aggregate level. But technology valuation is different to discounting aggregate corporate cash flow since it is concerned about individual Intellectual property. Therefore, blindly applying standard discount rate such as WACC in technology valuation is unlikely to lead to the right result. The primary focus of this paper is to establish the structure of discount rate for technology valuation and to suggest the method of estimation. To determine an appropriate discount rate for technology valuation, the level of technology risk, market risk and competitive risk should be included in the structure of discount rate. This paper suggests the build-up model which consists of three components as a expansion of the CAPM. It includes (1) a risk-free rate of return, (2) general market risk premium and beta and (3) intellectual property risk premium related to technology risk and specific target market risk. However, there is no specific check list for examining the intellectual property risk until now and no specific method for quantifying its risk into risk premium. This paper developed the 10 element to determine the level of the intellectual property risk and applied estimation function such as linear function, natural log function and exponential function to transform the level of risk into risk premium. The limitation of this paper is that the range of intellectual property risk premium is inferred based on the information of foreign and domestic valuation agency. Finally, this paper explored the development of an intellectual property discount rate for technology valuation and presented the method in order to quantify the intellectual property risk premium.

• Journal of the Korea Institute of Building Construction
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• v.11 no.4
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• pp.396-406
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• 2011

Execution of the finish work for high-rise residential construction occurs when a mixture of work progresses simultaneously at each floor or sector and is carried on by highly-specialized subcontractor teams. Therefore, the finish work plan requires an effective scheduling method that interfaces between the work and the teams. In order to address these issues, the TACT technique is utilized in Korea. This technique is based on Line-of-Balance and Lean construction. However, according to recent case studies, finish work using TACT technique was frequently delayed with cost overruns because the work was performed without a detailed schedule control plan outlining the relationship between architecture and mechanical, electrical, and plumbing work. This paper describes the enhanced-TACT technique which provides a detailed work flow chart and TACT work template. With improved TACT technique, this paper will contribute to improved cash flow and reduced cycle time and provide quality improvement through work continuity.

• Journal of Korea Port Economic Association
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• v.37 no.2
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• pp.1-17
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• 2021

Private investment projects have the characteristic of generating profits for a long period of 30 to 40 years, and fluctuations in profits and costs occur over time, so the interaction of variables over time rather than statistical models or discounted cash flows If the system dynamics technique, which enables simulation of the system, is used, it is considered that meaningful simulation results can be derived for internal and external variables. In other words, by establishing a financial feasibility comparison/verification model based on system dynamics for private investment projects in the port sector that have not been attempted before, we compare the differences with the existing cash flow discount method, macroeconomic factors, operating period, social discount rate We will conduct a differentiated study that has not been tried before by simulating how the interrelationships of such variables affect the change in financial performance.

• Journal of Korea Port Economic Association
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• v.27 no.3
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• pp.65-90
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• 2011

Private stevedoring companies are leasing and operating the container terminals of the Busan Port. The total amount of lease fees private stevedoring companies paid in 2010 reached 161 billion wons, an approximately 66 percent of the total revenue of the Busan Port Authority(BPA). In other words, lease fees are the most important revenue source for BPA. However, the lease fee assessment system of Busan container terminals goes against the principle of equity due to different assessment methods and criteria adopted by each container terminal. Therefore, the purpose of the study is to analyze the systematic problems of the lease fee assessment system that is used at Busan container terminals, and propose a new standardized scheme with a case study on the new system. In order to standardize the assessment system, the assessment methods need to be simplified by using the Discounted Cash Flow(DCF) method. In addition, the assessment criteria such as assessment duration, discount rates, price indexes, estimated container throughputs, sales unit price per TEU, operation costs, including labor costs, need to be standardized as well. The new standardized assessment system can be applied to estimate lease fees for new terminals. However, for existing terminals to run the new system, factors such as assessment duration, discount rates, price indexes, estimated container throughputs, investment and re-investment costs, and maintenance & repair costs of the new system should be changed slightly.

• Land and Housing Review
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• v.6 no.3
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• pp.117-127
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• 2015

Korean government has launched a new public rental housing policy for younger generation suffering from instable housing conditions in CBD area. This paper is to analyze the financial feasibility of urban public rental housing projects, based on its cash flows. Urban rental housing projects should find out the way to reduce costs and to secure cheap land, because of the high land price in CBD area and complex relationship of legal rights. Project types are categorized by the land acquisition method and district characteristics. For 10 sample projects, financial feasibility was analyzed. Cash flows were calculated on the design plan and 16 scenarios were made by combining 4 important variables. The variables are increase rate of land price, increase rate of monthly rents, ratio of public and market rents, and the interest rate of National Housing Fund. The findings are as follows. Government land rent-type can reduce initial costs because it is not necessary to buy land. However, total NPV is lowered at the time of liquidation due to the land return. Private land acquisition-type require more initial costs. But the NPV at liquidation time increases with land disposal. To improve financial feasibility, acquisition-type should be preferred in high land-price area and rent-type should be preferred in low land-price area. Among influencing variables, the rate of increase in land price and the ratio of public and market rents turned out to be the most important. Although the ratio of public and market rents can be controllable, high ratio will cause the burden of tenants. Therefore, interest rate adjustment of National Housing Fund is more desirable.