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Engineering Economist

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INTERPRETATION OF THEORY-OF INTEREST APPLICATIONS USING THE "FRACTIONAL WITHDRAWAL" CONCEPT.
ABSTRACT A model for analysing a single initial deposit followed by a sequence of periodic cash outflows is developed. Instead of treating the cash outflows as monetary amounts, they are . . .

ESTIMATING THE COST OF EQUITY FOR CORPORATIONS THAT REPURCHASE: THEORY AND APPLICATION.(Financing Business)
ABSTRACT The standard discounted dividend model provides flawed estimates of the cost of equity when corporations repurchase shares, which many now do. A simulation model shows that the . . .

FREE CASH FLOW (FCF), ECONOMIC VALUE ADDED (EVA[TM]), AND NET PRESENT VALUE (NPV): A RECONCILIATION OF VARIATIONS OF DISCOUNTED-
ABSTRACT The paper assists the user of DCF methods by clearly setting forth the relationship of free-cash-flow (FCF) and economic value added (EVA[TM]) concepts to each other and to the more . . .

REAL OPTIONS VALUATION AND ITS RELATIONSHIP TO BAYESIAN DECISION-MAKING METHODS.
ABSTRACT It is well accepted that conventional NPV criterion fails to capture investment flexibility, and the market approach using riskless-arbitrage-pricing is ideally suited to price real . . .

FUNDAMENTAL MANAGERIAL ACCOUNTING CONCEPTS.
BY THOMAS P. EDMONDS, CINDY D. EDMONDS AND BOR-YI TSAY Irwin McGraw-Hill, New York, 2000, xxvii + 625 pp. ISBN: 0-07-021441-7. (Hardcover). List: $97.75. This new managerial accounting text by . . .

ORDER PROCESSING COST REDUCTION IN A JOINT VENDOR-BUYER INVENTORY SYSTEM VIA THE APPLICATION OF INFORMATION TECHNOLOGY.
ABSTRACT Modern information technologies have become important means for manufacturing and retailing firms to gain such competitive advantages as lower logistics costs and securer customers' . . .

CALCULATING THE EXPECTATION AND VARIANCE OF THE PRESENT VALUE FOR A RANDOM PROFIT STREAM OF UNCERTAIN DURATION.(Statistical Data
ABSTRACT We derive the mean and variance of the random discounted sum [[[sigma].sup.N].sub.n=1] [[theta].sup.n][X.sub.n], when N is uncertain, as are the [X.sub.n]'s. This quantity arises in . . .

ECONOMIES OF SCALE IN MINING -- ASSESSING UPPER BOUNDS WITH SIMULATION.
ABSTRACT As part of the trend towards, increasing levels of mechanisation and automation, mines are turning to the use of larger equipment in order to achieve economies of scale. Larger trucks, . . .

INTEGRATING TRADITIONAL CAPITAL BUDGETING CONCEPTS INTO AN INTERNATIONAL DECISION-MAKING ENVIRONMENT.
ABSTRACT The capital budgeting policies of 146 multinational companies are analyzed in light of current financial theory. Extensions of domestic practices into the international area are . . .

SOLVING LARGE REPLACEMENT PROBLEMS WITH BUDGET CONSTRAINTS.(Statistical Data Included)
ABSTRACT Traditional replacement models assume unlimited capital. In practice, however, firms frequently use budgets to control their expenditures. Budget constraints necessitate that all . . .

CASE STUDY: US ARMY UTILITY HELICOPTER FLEET MODERNIZATION ANALYSIS.
ABSTRACT The US Army has relied heavily on helicopter support for more than 30 years. These aircraft have been used for a variety of purposes, with the most widely identified category being the . . .

ECONOMIC DESIGN AND OPERATION OF BIOFILTERS.
ABSTRACT Biofilters comprise a packed bed of (often compressible) natural materials containing immobilised micro-organisms which digest the volatile organic compounds (VOC) in air streams. This . . .

REAL OPTION MODELS FOR MANAGING MANUFACTURING SYSTEM CHANGES IN THE NEW ECONOMY.
ABSTRACT The manufacturing environment is becoming increasingly dynamic with upsurges in electronic-commerce, supply chain management, forecasting, and procurement and resource planning. It also . . .

COST, QUALITY, AND ENVIRONMENTAL TRADEOFFS FOR PRINTED CIRCUIT BOARD ASSEMBLY.
ABSTRACT After exhausting all "pollution prevention pays" opportunities, further efforts towards environmental protection often engender some type of cost to the manufacturer. Then, designers . . .

THE ECONOMIC EVALUATION OF A JOINT SUPPLY CHAIN INNOVATION.
ABSTRACT In this paper we discuss the economic evaluation of a supply chain innovation. We look at a situation in which a single manufacturer and a single distributor consider relocating assets . . .

ENGINEERING ECONOMIC ANALYSIS.(Review)
Engineering Press, (7th Edition), Austin, Texas, ISBN: 0-910554-97-8, 1998, xi + 756 pp., Student's Quick Study Guide and Windows Diskette. (Hardcover). List: 69.50. In teaching large sections of . . .

APPLIED ECONOMIC ANALYSIS FOR TECHNOLOGISTS, ENGINEERS, AND MANAGERS.(Review)
Prentice-Hall, Inc., Upper Saddle River, New Jersey, 1999, x11 + 561 pp., ISBN: 0-13-375932-6, List: $76.75. Professor Bowman's book has the ambitious goals of (1) introducing potential members . . .

REAL OPTIONS: MANAGERIAL FLEXIBILITY AND STRATEGY IN RESOURCE ALLOCATION.(Review)
The MIT Press, ISBN: 0-262-20102-X., xiii + 427 Pp. List: $52.95. This excellent monograph, not previously reviewed in The Engineering Economist, should be very high-priority reading for . . .

DETERMINATION OF ECONOMIC VALUE ADDED FOR A PROPOSED INVESTMENT IN NEW MANUFACTURING.
ABSTRACT This paper discusses a measure for estimating the wealth creation potential of capital investments in manufacturing. The measure, called "Economic Value Added," has recently become . . .

ON THE EQUIVALENCE OF NET PRESENT VALUE AND MARKET VALUE ADDED AS MEASURES OF A PROJECT'S ECONOMIC WORTH.
ABSTRACT The metric Economic Value Added, or EVA, has recently become quite popular for analyzing company balance sheets, determining executive compensation packages and even project selection. . . .

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