Engineering Economist articles from January 1992

Engineering Economist archives from January 1992

The evaluation of wood-fired cogeneration investments using Monte-Carlo simulation.
January 1, 1992... Abstract Monte-Carlo simulation was used in a capital budgeting decision involving the purchase of a wood-fired cogeneration plant. Two alternative capacities, 6-MW and 9-MW plants, were considered in the analysis using net present...

Risk aversion in the approximate and the exact forms.
January 1, 1992... Abstract A rigorous but intuitive framework is used to construct the Pratt-Arrow measures of absolute and relative risk aversion as exact measures of aversion to a general form of mean preserving spreads for any twice differentiable...

The capital asset pricing model in project selection: a case study.
January 1, 1992... Abstract In this case study four actual energy efficiency project are analyzed with two traditional engineering capital budgeting methods - internal rate of return and payback period - and the results compared with those obtained using...

Deceptive pitches to borrow rather than pay cash - a student tutorial.
January 1, 1992... Even with the Federally-mandated Truth-In-Lending Laws, there still seem to be plenty of ways "liars can figure" to make borrowing seem (deceptively) to be more attractive than paying cash, even when the borrowing interest rate is higher than...

A present value approach to determine optimum project duration.
January 1, 1992... ABSTRACT A present value approach to determine the optimum project duration is presented in this paper. The duration could be shortened (or prolonged) to minimize the total cost. Rosenblatt & Roll analyzed a similar duration shortening...

Uncertainty and the abandonment option.
January 1, 1992... This paper applies option pricing analysis to the problem of valuing the abandonment option of an investment proposal. The assumption is made that the abandonment option is exercisable at only one point in time in the future and that the...

The weighted average cost of capital: a caveat.
January 1, 1992... The debate between the proponents of the weighted average cost of capital (henceforth WACCists) and the proponents of sequential marginal costing (hencefort sequentialists) is one of the most fundamental debates in engineering economy. This...

Low cost microcomputer software for multi-attribute decision analysis.
January 1, 1992... This compilation features extensive summary information on microcomputer software packages which facilitate multi-attribute decision analysis (MADA). Several of these packages also support other non-traditional approaches to economic decision...

America's Struggle for Leadership in Technology.
January 1, 1992... The author is a noted French advisor on science and technology policy who served as Chief Science Counselor of the French Embassy in Washington During 1984-7. In this book, he provides a perspective that may help the United States retain and...

Justification Methods for Computer Integrated Manufacturing Systems.
January 1, 1992... The editors have complied 16 articles and a bibliography which in sum offer a treatment of considerable breath. CIM, of course, embraces many topics and issues, and this compendium touches on enough of them that the books subtitle Planning,...

Analysis of Textbooks on Capital Investment Appraisal.
January 1, 1992... The author compares 39 textbooks drawn from the fields of engineering economy (22 books), chemical engineering design and economics (7), finance (5), process industry engineering (4), and management science (1). The authors primary goal is to...

Capital Budgeting and Long-Term Financing Decisions.
January 1, 1992... Dr. Seitz' book is intended as a textbook for advanced undergraduate or MBA finance courses or for industrial engineering courses which prepare students to make capital budgeting decisions. although written with an applications orientation,...

Ethics and Risk Management in Engineering.
January 1, 1992... This volume contains a very readable set of 15 papers on ethical and economic issues pertaining to risk management and on what engineers and the engineering profession can and should do about them. The papers, which vary very widely in style...