Engineering Economist articles from June 2003

Engineering Economist archives from June 2003

Budget allocation among R&D teams with interdependent uncertain achievement levels and a common goal.
June 22, 2003... INTRODUCTION Suppose you wish to allocate a budget between two R&D projects with a common goal, one of which you consider as having, for any given level of funding, a higher potential of success, or higher expected achievement, than the...

Managerial advantages of using payback as a surrogate for NPV.
June 22, 2003... INTRODUCTION Despite longstanding references to the theoretical deficiencies of payback (PB) -- e.g. (4) and (12) -- managers continue to use the method. Indeed empirical studies over many years have shown that PB has been widely used....

Project-specific financing and interest rate risk in capital budgeting.
June 22, 2003... INTRODUCTION A growing number of writers have acknowledged the importance of Macaulay (13) duration as a useful tool for capital budgeting purposes (2, 4, 5, 6, 8, 9, 10, 12). In capital investment, the duration of a project is a measure...

A note on the cost of ownership, capital recovery and depreciation. (Technical Note).
June 22, 2003... INTRODUCTION Traditional approaches to the exposition of concepts in the field of engineering economics remain strongly entrenched in textbooks as well as the literature. For example the recent text by Bowman (1) continues the tradition of...

A modified EOQ model with temporary sale price derived without derivatives. (Technical Note).(economic order quantity)
June 22, 2003... INTRODUCTION Recently, researches in EOQ and temporary price discount have been widely done (2,3,5,7). Grubbstrom and Erdem (4) elaborated the formulation of classical EOQ without differential calculus. Cardenas-Barron (1) extended the...

Risk Modeling for Determining Value and Decision Making. (Book Review).(Book Review)
June 22, 2003... Chapman & Hall/ CRC Press, Boca Raton, Florida, 2000, 321 pp. ISBN 1-58488-167-4. List: $54.95. This volume is a second from the author, Dr. Glenn Koller and CRC Press, dealing with Risk and Decision Making. (See my review of his first...

Correction.
June 22, 2003... 2003, VOLUME 48. NUMBER 1 TECHNICAL NOTE: "THE VARIABLE FINANCIAL INDICATOR IRR AND THE CONSTANT ECONOMIC INDICATOR NPV," by S.L. TANG (The Hong Kong Polytechnic University, HONG KONG) and H. JOHN TANG (The Chinese University of Hong Kong,...