Engineering Economist articles from June 2000

Engineering Economist archives from June 2000

EDITORIAL.(Brief Article)(Editorial)
June 22, 2000... 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 University in 1987, and has extensive experience in...

UNIT COST MODEL FOR THE TIMING OF CAPACITY CHANGE.
June 22, 2000... 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 the firm's operations and profitability. It...

RELATIVE RISK CHARACTERISTICS OF ROLLING HORIZON HEDGING HEURISTICS FOR CAPACITY EXPANSION.
June 22, 2000... 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 forecast updates and the hedge against...

THE IMPACT OF POLITICAL RISK ON THE FOREIGN DIRECT INVESTMENT DECISION: A CAPITAL BUDGETING ANALYSIS.
June 22, 2000... 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 regulations as well as the investment via...

THE IMPACT OF NEW PRODUCT ANNOUNCEMENTS ON FIRM VALUE IN INFORMATION TECHNOLOGY PRODUCING INDUSTRIES: AN EXAMINATION OF INDUSTRY-LEVEL EVOLUTIONARY ERAS.
June 22, 2000... 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 short-term, there was no effect. In the long-term...

ON THE EQUIVALENCE OF NET PRESENT VALUE AND MARKET VALUE ADDED AS MEASURES OF A PROJECT'S ECONOMIC WORTH.
June 22, 2000... 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. The analysis entails comparing net after-tax...

DETERMINATION OF ECONOMIC VALUE ADDED FOR A PROPOSED INVESTMENT IN NEW MANUFACTURING.
June 22, 2000... 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 popular in the United States and can be derived...

REAL OPTIONS: MANAGERIAL FLEXIBILITY AND STRATEGY IN RESOURCE ALLOCATION.(Review)
June 22, 2000... 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 all scholars and academically inclined practitioners...

APPLIED ECONOMIC ANALYSIS FOR TECHNOLOGISTS, ENGINEERS, AND MANAGERS.(Review)
June 22, 2000... 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 of work teams in organizations to the ideas...

ENGINEERING ECONOMIC ANALYSIS.(Review)
June 22, 2000... 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 elementary engineering economics virtually...