摘要:

The task of submitting a competitive bid for the production of a specific product or performance of a particular job is a requirement of firms in many different types of industries, such as construction, manufacturing, and government contracting. In this paper we provide a general model from which to derive a deterministic bid price on a unit price contract. The solution is derived in a capital budgeting context, first for a single bid item contract and then extended to the case of a multiple bid item contract. The specification of a completely general model allows us to examine the sensitivity of the solution to the firm's fixed and variable costs. The sensitivity of the bid price is shown to be independent of the level of cost, but highly dependent upon the delivery schedule of the contract. A form of the winner's curse dilemma is also examined. We show how the conditional distribution of project net present value (NPV), given a winning bid, is adversely affected, and provide a means to incorporate a correction to the firm's bid price. A brief numerical example is included to illustrate the models.

ISSN:0013-791X    

DOI:10.1080/00137919408903131

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor

摘要:

One of the major cost components in tool economics is the cost incurred due to deviation in workpiece quality as a result of poor tool-cutting conditions. Commonly, the operating conditions of a culling tool may be restored via regrinding during periodic intervals of the tool's life. This paper proposes that optimal regrinding interval ought to be determined with respect to the optimal number of regrindings. The product of these two values defines the economic life of a tool. The objective function is the minimization of the sum of the expected costs of failure, regrinding, tool purchase, machining, and deviation in workpiece quality. The cost of deviation in workpiece quality is modelled using Tagucbi's loss function. The effect of cutting speed on tool regrinding interval is also explored.

ISSN:0013-791X    

DOI:10.1080/00137919408903132

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor

摘要:

This study presents comprehensive formal expressions for the net advantage of leasing over buying, Δ, in the presence of all of the following parameters of the leasing issue: intertemporal changes in tax rates, loan repayment schedule, financial leverage, scrap value and inflation. The leasing model derived in this study implies the following results. When the tax rate to the lessor (Tr) is higher than that to the lessee (Te,), Δ increases with the present value of both depreciation and interest deductions. Interestingly, Δ can.also be positive even if Te> T Tr. The existence of positive salvage value increases Δ even higher, independently of the depreciation and loan repayment schedules. The financial leverage has a positive impact on Δ, while the impact of inflation on Δ depends on both the depreciation and loan repayment schedule as well as on the inflation level itself. A discount-rate asymmetry also has an impact on Δ. Specifically, Δ is positive (negative) as the discount rate of the lessor is lower (higher) than the discount rate of the lessee. Finally, when intertemporal differences in tax rate exist either to the lessor and/or to the lessee, Δ increases.

ISSN:0013-791X    

DOI:10.1080/00137919408903133

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor

摘要:

A recent paper by Bemhard [The Engineering Economist, 38 (Spring 1993) 3, pp. 165–176([ asserts that the NPVdecision criterion, and by implication the NPVmeasure of worth, which is part of the decision criterion, implies a different “investment” and “project income” (return) than the IRR decision criterion, except when the internal rate(s) of return are equal to the external rate(s) of return. In this paper, it is demonstrated that both the IRR decision criterion and the NPV decision criterion assume that the capital that remains invested (or borrowed) in an opportunity grows at the IRR of the opportunity and cash released by the decision about the opportunity would he invested to grow at the decision maker's marginal growth rate (or “external” rate).

ISSN:0013-791X    

DOI:10.1080/00137919408903134

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137919408903135

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137919408945394

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137919408945395

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137919408945396

出版商:Taylor & Francis Group    

年代:1994

数据来源: Taylor