Engineering Economist articles from June 2004

Engineering Economist archives from June 2004

The effect of technological improvement on capacity expansion for uncertain exponential demand with lead times.
June 22, 2004... Capacity expansion is the process of adding new facilities of similar types over time to meet a rising demand for their services. Planning for the expansion of capacity is of vital importance in many applications within the private and public...

Real options volatility estimation with correlated inputs.
June 22, 2004... Real Options Analysis (ROA) extends valuation models used to price financial options and applies them to investments in real assets or real markets. Black and Scholes (1973) developed a model to value financial options that focuses on factors...

The relevant internal rate of return.
June 22, 2004... The internal rate of return (IRR), mathematically defined as the interest rate that equates the present worth of a series of cash flows to zero, is and has been a popular measure of worth for purposes of project evaluation. When unique, it...

Investment analysis for automotive electronics manufacturing: a case study.
June 22, 2004... Electronics manufacturing is a cornerstone of the current global economy and presents many unique issues and opportunities to manufacturing and investment planners. These challenges involve many issues related to global manufacturing operations...

Technical note--the internal rate of return (IRR) as a financial indicator.
June 22, 2004... In their recent paper, Tang and Tang (2003) join the decades-long discussion on the merits and validity of the internal rate of return (IRR) as a viable alternative to the net present value (NPV) project-evaluation criterion. They argue that,...