Duality Results for Discrete Capital Budgeting Models

The application of linear and non-linear programming duality theory to capital budgeting models had resulted in the identification of various properties of optimal solutions and has provided economic interpretations of the models. This paper illustrates that similar results may be obtained for discrete capital budgeting models by applying recent advances in duality theory for integer programming problems (1), (2), and (3).In addition, a dual solution method is developed that permits a degree of decentralization of a firm's capital budgeting decision.     

Models for Cash Flow Estimation in Capital Budgeting

This paper discusses a fundamental change that appears to be occurring in the practical and theoretical aspects of engineering economy. Recent emphasis on the engineer's role in strategic and design-related decision processes has created a very real need for a change in focus in engineering economy technique and methodology. Several areas of research opportunity that arise because of the paradigm shift are also identified herein.     

A Robust Optimization Approach to Capital Rationing and Capital Budgeting

We study the pure capital rationing and the horizon capital budgeting problems using a robust optimization framework. The models and the methodology we propose take into account the uncertainty of the input data. The uncertainty of the cash flows is modeled as a range of values that is allowed for each uncertain data. Unlike stochastic models, this approach does not make assumptions on the probability distribution of uncertain data. Moreover, this approach is highly tractable, easy to implement, and provides insights into portfolio selection problems. An attractive point of the model is that the decision maker can set the value of the parameters that control the robustness of the optimal solution, in order to balance the trade-off between protection level and performance. We illustrate our models with examples that show promising results. We also provide new duality and KKT optimality conditions.     

An Approach to the Capital Budgeting Problem with Multiple Objectives

This paper describes a course in Engineering Economy which has been taught at Bradford for twenty years. It employs a variety of teaching methods to meet the preferred learning styles of students with different personality profiles and rt enables them to develop by passing through all four quadrants of the Experiential Learning Cycle. To facilitate this process, a novel business game has been invented which allows the Net Present Value of a project to be calculated quickly. Working as teams, students can thereby appraise the economic merits of a capital project as it proceeds through the various stages of its life cycle. The derivation of this model is provided herein with a few examples of the memoranda which enable the game to develop in a realistic way and by applying sequential decisions.     

A Solution Methodology for Probabilistic Capital Budgeting Problems Using Complex Utility Functions

Historically, the study of economic equipment replacement is primarily limited to that of a single machine or a single machining system. The replacement situation whereby machines under consideration are part of a large integrated system has received little attention. This paper proposes a framework, for the analysis of multiple-machine replacement within an integrated system context. The major difficulty of analyzing such a problem lies in the interactive nature of an integrated system; that is, how should the effects to the entire system be assessed as a result of alterations to one or more of its components. The emphasis of this work is on the issues regarding multiple machine replacement. A single-period model is utilized in order to simplify the presentation. A comprehensive example is also provided for illustration.     

Borrowing Interest Rate as a Function of the Debt-Equity Ratio in Capital Budgeting Models

This research extends Weingartner's basic horizon model by letting the borrowing terest rate vary from period to period as a function of the debt-equity ratio. blicly available data for two industries are used to obtain the function. Two models 2 developed: a non-convex nonlinear programming problem, which is solved by the oke and Jeeves algorithm; and an iterative linear model. It is concluded that either del can be used to represent the relationship between borrowing interest rate and Dt-equity ratio in the context of the capital budgeting problem.     

井下作业基础预算的可行性及特殊性

作业基础预算是将全面质量管理与作业管理相结合的动态预算管理模式。针对煤矿井下生产成本发生的特点,探讨了煤矿井下生产应用作业基础预算的可行性及特殊性。     

企业集团资本多元结构的调整与优化分析

通过分析现代资产组合理论与企业集团资本经营研究对象的差异,指出资产组合理论在企业资本运营中的“盲点”,分析阐述了资本流动及资本结构的调整优化对建立企业集团战略性竞争优势的重要意义。     

信用风险监管资本测度优化

在巴塞尔新资本协议框架下的IRB模型基础上,通过违约相关性模型的推导,得出了降低信贷资产组合信用风险加权资产的一些有效途径;通过对同质类资产组合和异质类资产组合的风险集中度调整的方法,提出了风险分散的具体路径;通过由银行的资本总成本最小化约束模型和监管者破产银行数目最小化约束模型联合组成的激励相容模型,将银行出于内部风险管理目的而计算出来的风险价值,同监管当局出于监管目的而要求银行确定的监管资本有效地联系起来。     

Effective Property Tax Rates and Capital Formation Issues: Manvel, Acton and Darby

Using comparatively new data sources, this study estimates that effective property tax rates on taxable capital declined nearly 50% in the U.S. during the decade of the 1970s, a phenomenon generally overlooked or understated in previous studies. Recognition of this halving of property tax rates permits at least a partial explanation for a number of otherwise unexplained macroeconomic occurrences during the 1970s, particularly the smaller-than-anticipated interactive effects of inflation and the income tax on interest rates, on the one hand, and on capital allocation, on the other. The clear implication is that greater attention must be paid to trends in effective property tax rates in understanding and predicting important economic behavior.     

The Evaluation of Risk in Marine Capital Investments

Future costs and revenues in capital investment opportunities can seldom be predicted with certainty. As a result, there is usually some doubt as to the outcome of an investment. The chance that an investment may not prove profitable represents the investor's risk. This paper considers the problems which uncertainty and risk present in the evaluation of capital investments. Several traditional methods of dealing with uncertainty and risk are considered and shown to be deficient. A relatively new evaluation technique, which utilizes probability theory and computer simulation, is then described and its advantages highlighted. It is suggested that this technique will prove valuable in the evaluation of future marine capital investments.     

Risk Sharing,the Cost of Equity and the Optimal Capital Structure of the Regulated Firm

This paper considers the relationship between the regulator’s pricing decision and the allocation of risk between consumers and shareholders. Consumers are willing to trade-off price variations against a lower expected price. Prices are higher in adverse economic conditions, but shareholder returns are not necessarily lower. It might be optimal to insure shareholders against market risk, so that consumers could thereby achieve a lower expected price. The allocation of risk between consumers and shareholders depends on the capital structure of the regulated firm, and a very special set of conditions must apply for the social optimum to be 100% debt finance with the firm operating on a ‘not-for-profit’ basis.      

我国资本帐户开放的风险收益分析及政策选择

随着我国经济体制改革的深入,资本帐户的开放己成为一种必然趋势。资本帐户开放的风险和收益并存,因此如何通过合理的政策安排以最大限度地实现资本帐户开放的收益,并尽可能地避免风险已成为我国面临的重大课题。     

人民币汇率波动对我国金融项目下资本流出的相关分析

本文选取从2005年—2018年人民币汇率和中国对外金融项目季度数据来进行相关性分析,研究人民币汇率变化对我国金融项目下资本流出的影响。从实证结果表明:人民币汇率变化与我国金融项目下资本流出两者之间存在着低度正相关关系,即人民币贬值带来我国金融项目下资本流出的增加,人民币升值带来我国金融项目下资本流出的减少。然而这结论与实际理论恰恰相反,分析背后的原因发现"一带一路"倡议的提出和我国经济发展形势的变化对我国金融项目下资本流出做出了巨大的贡献。因此需要我们结合我国的具体实际情况,在加强自身建设的同时也要做好风险防范措施,抓住机遇不断加快我国走出去的步伐。     

试谈供电公司生产作业零基预算

由于企业内外部环境的重大变化,供电公司提升业绩的压力逐年增大,加强预算管理、创新预算管理方法是企业管理的重大举措。在供电企业推行生产作业零基预算,就是运用生产作业成本与零基预算管理相结合的成本管理方式,实现目标管理和过程管理相结合,引导企业向节约资源、科学管理、业绩评价准确的管理方式转变,促进企业健康发展。     

Capital Structure and the Cost of Capital for Untaxed Firms: The Case of REITs

REITs offer the opportunity to examine the relationship between capital structure and cost of capital in the absence of corporate earnings taxes. The evidence supports the leverage clientele effect as the motivation for the use of financial leverage by REITs.