Engineering Economist articles from December 2005

Engineering Economist archives from December 2005

Letter from the editor.(Editorial)
December 22, 2005... Dear Readers, We continue our anniversary celebration of Volume 50 of The Engineering Economist. For this issue, we have invited Marlin Thomas of the School of Industrial Engineering at Purdue University and his paper "Engineering Economic...

Engineering economic decisions and warranties.
December 22, 2005... INTRODUCTION A warranty is a formal commitment by a producer to assume certain responsibilities for product quality following the sale or delivery of the product. Essentially all new consumer products sold today are covered by some type of...

A different perspective on using multiple internal rates of return: the IRR parity technique.
December 22, 2005... INTRODUCTION The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to various problems of the IRR. For instance, the basic IRR method cannot rank mutually exclusive...

Project valuation with time-varying cash flows: a Bayesian approach.
December 22, 2005... INTRODUCTION Several authors employed the single-period capital asset pricing model (CAPM) of Lintner [7] and Sharpe [11] to value long-lived capital assets. The study by Bogue and Roll [2] was an early attempt in this direction. They...

Measuring and utilizing corporate risk tolerance to improve investment decision making.
December 22, 2005... INTRODUCTION Economic decision analysis has become an increasingly important technique applied to strategic capital investment problems. The integration of decision analysis and engineering economics provides improved decision support for...