Engineering Economist articles from March 2002

Engineering Economist archives from March 2002

Multi-stage capital investment opportunities as compound real options.
March 22, 2002... INTRODUCTION Real option analysis is a relatively new and insightful way to think about corporate investment decisions. It is based on the premise that any corporate decision either to invest in or divest real assets can be viewed as an...

A Real Options design for quality control charts.
March 22, 2002... INTRODUCTION In the forward to Real Options (Trigeorgis (1999)), Scott Mason writes: "Flexibility has value. While this statement is obvious at the conceptual level, it is surprisingly subtle at the applied level." The question then...

Discount rate value and cash flow definition: A new relationship and its implications.
March 22, 2002... INTRODUCTION Evaluating an investment project can require the use of approaches designed to integrate the consideration of the flexibility and uncertainties associated with the investment opportunity under study (11). Regardless of the...

Generalized formula for the periodic linear gradient series payment in a skip payment loan with arbitrary skips. (Technical Note).(Statistical Data Included)
March 22, 2002... INTRODUCTION A direct reduction loan consists of a sequence of equal ("level") periodic payments uniformly separated in time ("period"). A skip payment loan is a direct reduction loan in which certain payments are skipped completely....

Risk Assessment and Decision Making in Business and Industry: A Practical Guide. (Book Review).(Brief Article)
March 22, 2002... CRC Press, Boca Raton, Florida, 1999, 239 pp. ISBN 0-8493-0268-4. List: $31.96. This well written text by Dr. Glenn Koller is a wonderfully concise and practical resource that should be included in any library on risk analysis and...

An Introduction to Mathematical Finance: Options and other Topics. (Book Review).(Brief Article)
March 22, 2002... Cambridge University Press, New York, New York, 1999, xv + 184 pp. ISBN (521-77043-2. List: $37.95. (hardback) This beautiful little book is a welcome and needed contribution to the academic literature on options and financial engineering....

Selecting i -- Engineering economy needs a consensus. (Readers' Forum).
March 22, 2002... Editorial Note: Articles published under the Readers' Forum are intended to encourage a dialogue among readers in the community. These articles represent the authors' personal views and do not reflect that of the journal's. INTRODUCTION...