摘要:

The value of an asset is determined by the net economic value of its production over time. This value is summarized by the net present value of all present and future production. Change in asset value, depreciation or appreciation, results from both changes in the economic value of each unit of production and the asset's physical productivity. A theory of depreciation expressing this approach is derived from first principles of engineering economics. The asset's initial fabrication cost is not directly relevant to determining its net economic value once the asset exists. The theory is illustrated for the case of water resource reservoirs

ISSN:0013-791X    

DOI:10.1080/00137918908903000

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

Automation is widely believed to be the solution to productivity woes. In their zeal to automate operations, manufacturers often ignore the economic consequences of altered production factors. This paper presents economic analysis of selecting a product assembly method. The three alternative assembly methods considered are: (1) manual, (2) hybrid (part manual and part automatic), and (3)automatic. It is shown that if certain factors change, such as the equipment reliability, the chosen alternative, even though economically desirable initially, results in higher unit production costs and, therefore, becomes undesirable. Thus, many factors which are ignored in a traditional economic analysis, must be known and considered in economic analyses of this kind if the outcome is to be factual.

ISSN:0013-791X    

DOI:10.1080/00137918908903001

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

In applications of the classic methods of capital budgeting the emphasis has always been on the decision to “enter” a project, i.e., to select the project(s) to be executed. Although this decision remains a very important one, it is important to examine the decision to “exit a project”. When should one get out of a project or what are the financial consequences of a premature termination of an investment project? This paper introduces an extended version of the net present value rule for exit calculations. The impact of premature termination of a project can be graphed and forms the exit economic profile for the “life—cycle” of the project. This allows the investor to quantify the economic consequences of exiting the project at different points in time providing a measure of the risks involved in terminating or exiting a project. This type of analysis is particularly important for projects that face environmental uncertainty or those that may be terminated prematurely for example by technology, strategic flexibility, and government expropriation or other forces beyond the company's control.

ISSN:0013-791X    

DOI:10.1080/00137918908903002

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

“Modified” rates of return for capital investment evaluation and the issue of the type of rate base to be used there are reviewed, and it is shown that the base type recently proposed by Beaves is actually identical to one previously proposed by Lin. In any event, under certainty and a perfect capital market, it is shown that the rate base issue is irrelevant in that project selection by optimal rate of return decision rules is, inevitably, independent of the base type used. Also discussed are some potential misapplications of “modified” rates and correct means for avoiding those.

ISSN:0013-791X    

DOI:10.1080/00137918908903003

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

摘要:

This paper examines the usefulness of the duration measure as a secondary ranking criterion in the capital budgeting decision environment. The potential value of the duration measure in this context is called into question through a performance comparison with other popular ranking criteria such as payback period and internal rate of return. The results of this study support the conclusion that useful information contained in the duration measure is effectively captured by the more traditional ranking criteria, and therefore inclusion of this more complex measure in the capital budget selection process is probably inefficient and unnecessary.

ISSN:0013-791X    

DOI:10.1080/00137918908903004

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908903005

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908903006

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor

ISSN:0013-791X    

DOI:10.1080/00137918908903007

出版商:Taylor & Francis Group    

年代:1989

数据来源: Taylor