Property cash flow studies : focusing on model consistency and data accuracy

The high degree of variability and inconsistency in cash flow study usage by property professionals demands improvement in knowledge and processes. Until recently limited research was being undertaken on the use of cash flow studies in property valuations but the growing acceptance of this approach for major investment valuations has resulted in renewed interest in this topic. Studies on valuation variations identify data accuracy, model consistency and bias as major concerns. In cash flow studies there are practical problems with the input data and the consistency of the models. This study will refer to the recent literature and identify the major factors in model inconsistency and data selection. A detailed case study will be used to examine the effects of changes in structure and inputs. The key variable inputs will be identified and proposals developed to improve the selection process for these key variables. The variables will be selected with the aid of sensitivity studies and alternative ways of quantifying the key variables explained. The paper recommends, with reservations, the use of probability profiles of the variables and the incorporation of this data in simulation exercises. The use of Monte Carlo simulation is demonstrated and the factors influencing the structure of the probability distributions of the key variables are outline. This study relates to ongoing research into functional performance of commercial property within an Australian Cooperative Research Centre.

Feasibility studies on using microwave-heating techniques for recycling lead waste

Lead is present everywhere in the environment and has been defined as one of the greatest threats to the human health. In this paper, attempts have been made to study a way of recycling the lead produced from waste usage and disposed of in such a way as to avoid degrading the surrounding environment. In order to contain the waste, recycled asphalt material is mixed with the lead and then heated with microwave energy. This is an attempt to solidify and reduce the lead contaminants and use the final product as sub-base material in road pavement construction. The microwave heating of the specimens is carried out with 30%, 50%, 80% and 100% of power at 800W. The optimum power mode is used to compare with the conventional heating of asphalt with sulfur additive. The results are characterized by compact density, permeability, and subjected to toxicity test with regards to lead concentration. A mechanical test to evaluate the stability is also performed on the three methods of solidification and to prove that microwave zapping method allow to convert into an environmentally stable material for recycling without having to be deposited in a landfill site.