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Engineering Economist

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THE IMPACT OF NEW PRODUCT ANNOUNCEMENTS ON FIRM VALUE IN INFORMATION TECHNOLOGY PRODUCING INDUSTRIES: AN EXAMINATION OF INDUSTRY
ABSTRACT We explored the market reaction to new IT product announcements by the hard drive manufacturing industry in relation to that industry's evolutionary cycle of innovation. In the . . .

THE IMPACT OF POLITICAL RISK ON THE FOREIGN DIRECT INVESTMENT DECISION: A CAPITAL BUDGETING ANALYSIS.
ABSTRACT Using a capital budgeting framework, we examine the impact of political risk on the foreign direct investment decision. Political risk may alter operating cash flows via discriminatory . . .

RELATIVE RISK CHARACTERISTICS OF ROLLING HORIZON HEDGING HEURISTICS FOR CAPACITY EXPANSION.
ABSTRACT This paper applies measures of risk to capacity expansion decisions made under uncertainty. Eight different decision making rules are constructed by varying both the frequency of the . . .

UNIT COST MODEL FOR THE TIMING OF CAPACITY CHANGE.
TIMO K[ddot{A}]RRI ABSTRACT The optimal capacity expansion time is an essential problem especially in capital intensive industries, and capacity expansion decisions have a great influence on . . .

EDITORIAL.(Brief Article)(Editorial)
I am pleased to announce the appointment of Ms. Latha S. Bhavnani as Managing Editor of the journal. Ms. Bhavnani has a master's degree in Journalism and Mass Communication from Iowa State . . .

AN EMPIRICAL ANALYSIS OF ENGINEERING ECONOMY PEDAGOGY.
ABSTRACT This work presents the results of a recent two-part survey of how engineering economy is taught in U.S. universities. A mail and email survey of faculty and staff that teach engineering . . .

A PARAMETRIC WEIGHING APPROACH FOR PROJECT SELECTION UNDER RISK.
ABSTRACT Parametric weighing is a practical approach for project selection under risk. Only subsets of projects that satisfy budget constraints are considered, in order to maximize the sum of the . . .

THE EFFECT OF PROJECT RISK ON CAPITAL RATIONING UNDER UNCERTAINTY.
ABSTRACT The purpose of this paper is to investigate the effect of project risk on capital rationing with uncertain budgetary constraints. We reflect project risk by the standard deviation of . . .

EXPLOITING UNCERTAINTY--INVESTMENT OPPORTUNITIES AS REAL OPTIONS: A NEW WAY OF THINKING IN ENGINEERING ECONOMICS.
ABSTRACT A new trend in corporate planning is to exploit uncertainty by taking investment opportunities as real options. This options approach is to complement the conventional net present value . . .

ESTIMATING THE COST OF EQUITY: CURRENT PRACTICES AND FUTURE TRENDS IN THE ELECTRIC UTILITY INDUSTRY.(Brief Article)(Statistical
ABSTRACT Our survey of the investor-owned electric utility companies and utility commissions indicates that the use of asset pricing models for estimating the cost of equity is limited in this . . .

JUSTIFYING CAPITAL EXPENDITURES IN NEW TECHNOLOGY: A SURVEY.(Brief Article)(Statistical Data Included)
ABSTRACT Our survey of the investor-owned electric utility companies and utility commissions indicates that the use of asset pricing models for estimating the cost of equity is limited in this . . .

THE SOCIAL RATE OF RETURN TO AN INVENTOR'S ASSISTANCE PROGRAM.(Brief Article)(Statistical Data Included)
ABSTRACT Inventors, who are considering the commercialization of their inventions, can often avail themselves of evaluations and advice provided by government supported programs. In Canada, such . . .

PER UNIT COST ALLOCATION OF INVESTED CAPITAL WITH ANTICIPATED NON-LEVEL PRODUCTION: THE CASE OF EXTRACTIVE INDUSTRIES.(Brief Art
ABSTRACT The concept of equivalent annual annuity (EAA) has long been used as a method of costing recovery of invested capital and the required return on invested capital over the productive life . . .

PRODUCT AND PROCESS COST ESTIMATION WITH FUZZY MULTI-ATTRIBUTE UTILITY THEORY.(Brief Article)(Statistical Data Included)
ABSTRACT The need to provide cost-effective manufacturing technologies is critical in today's globally competitive environment. The ability to make sound decisions about the cost effectiveness of . . .

Derivation of an intertemporal correlation coefficient model based on cash flow components and probabilistic evaluation of a pro
INTRODUCTION In evaluating risky investment projects based on the net present value (NPV) method, the expected NPV is found such that E(NPV) = [summation of] E([C.sub.t])/[(1 + . . .

An efficient approach to prioritize projects under budget constraints.
INTRODUCTION Project selection is to assign the limited resources to the most needed or valuable project so as to maximize the overall profit of an organization. This is especially true for the . . .

A quality function deployment approach to strategic capital budgeting.
INTRODUCTION In today's economy, successful manufacturing firms must be strategically poised to take advantage of constantly changing market opportunities and defend against competition [4]. One . . .

A general procedure for incorporating asset utilization decisions into replacement analysis.
INTRODUCTION In traditional replacement analysis, an optimal replacement schedule for an asset is determined through the minimization of purchase, operating, maintenance and salvage costs over . . .

Strategic Decision Making: Multiobjective Decision Analysis with Spreadsheets.(Review)
This exceptionally fine new book is a major contribution toward the more widespread use of analytically defensible and pragmatically applicable multiobjective decision analysis. Professor Kirkwood, . . .

Risk management in undergraduate engineering economics education.
INTRODUCTION Risk and risk management are central issues in financial decision making in engineering environments. This paper will explore how risk is treated in engineering economics . . .

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