Engineering Economist articles from September 2005

Engineering Economist archives from September 2005

Letter from the editor.(Editorial)
September 22, 2005... Dear Readers, We continue our anniversary celebration of Volume 50 of The Engineering Economist. This issue, we have invited Soulaymane Kachani and Jerome Langella of the Department of Industrial Engineering and Operations Research at...

A robust optimization approach to capital rationing and capital budgeting.
September 22, 2005... INTRODUCTION Motivation Capital rationing and capital budgeting are powerful decision analysis tools. They deal with investment decisions when confronted with investments opportunities with quantifiable cash flows generated by each...

A range-based finite difference approach to valuing options in Markov switching regimes *.
September 22, 2005... INTRODUCTION Recent literature on the subject of capital budgeting has highlighted the inflexibility inherent in traditional discounted cash flow (DCF) estimation techniques (see, for example, Dixit and Pindyck [7], and Park and Herath...

Dual kriging: an exploratory use in economic metamodeling.
September 22, 2005... INTRODUCTION Sensitivity analysis is crucial in deterministic capital investment evaluation since the estimates of input factors such as the interest rate and amount and timing of cash flows used in cash flow analysis are not known with...

Real options analysis for "green trading": the case of greenhouse gases.
September 22, 2005... INTRODUCTION The opportunity for organizations to become more environmentally conscious and exemplary global citizens has been increasing over the last two decades. No longer are reactive corporate policies in response to...

Technical note: defining project scale.
September 22, 2005... DEFINING PROJECT SCALE Investment theory generally assumes that the scale of one's investment in a particular asset or security is infinitely variable. In that case, the performance of a particular investment can be measured by its rate of...