Sixth Edition. Global Edition CONTEMPORARY ENGINEERING ECONOMICS. Chan S. Park Department of Industrial and Systems Engineering Auburn University
|
|
- Ginger Douglas
- 6 years ago
- Views:
Transcription
1 Sixth Edition Global Edition CONTEMPORARY ENGINEERING ECONOMICS Chan S. Park Department of Industrial and Systems Engineering Auburn University PEARSON Boston Columbus Indianapolis New York San Francisco Hoboken Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Säo Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo
2 CONTENTS Preface 2I PART I BASICS OF FINANCIAL DECISIONS 31 Chapter I Engineering Economic Decisions Role of Engineers in Business Types of Business Organization Engineering Economic Decisions Personal Economic Decisions Economic Decisions Versus Design Decisions What Makes the Engineering Economic Decision Difficult? Large-Scale Engineering Projects Are Tesla's Plans for a Giant Battery Factory Realistic? Impact of Engineering Projects on Financial Statements Common Types of Strategie Engineering Economic Decisions Equipment or Process Selection Equipment Replacement New Product or Product Expansion Cost Reduction Improvement in Service or Quality Fundamental Principles of Engineering Economics 42 Summary 45 Short Case Studies 45 Chapter 2 Accounting and Financial Decision Making Accounting: The Basis of Decision Making Financial Status for Businesses The Balance Sheet The Income Statement The Cash Flow Statement Using Ratios to Make Business Decisions Debt Management Analysis Liquidity Analysis Asset Management Analysis Profitability Analysis 70 9
3 10 Contents Market Value Analysis Liraitations of Financial Ratios in Business Decisions 73 Summary 76 Problems 76 Short Case Studies 83 Chapter 3 Interest Rate and Economic Equivalence Interest: The Cost of Money The Time Value of Money Elements of Transactions Involving Interest Methods of Calculating Interest Economic Equivalence Definition and Simple Calculations Equivalence Calculations: General Principles Development of Formulas for Equivalence Calculations The Five Types of Cash Flows Single-Cash-Flow Formulas Equal-Payment Series Linear-Gradient Series Geometrie Gradient Series Irregulär (Mixed) Payment Series Unconventional Equivalence Calculations Composite Cash Flows Determining an Interest Rate to Establish Economic Equivalence Unconventional Regularity in Cash Flow Pattern 149 Summary 150 Problems 151 Short Case Studies 160 Chapter 4 Understanding Money and Its Management Nominal and Effective Interest Rates Nominal Interest Rates Effective Annual Interest Rates Effective Interest Rates per Payment Period Continuous Compounding 169
4 Contents Equivalence Calculations with Effective Interest Rates When Payment Period is Equal to Compounding Period Compounding Occurs at a Different Rate than That at Which Payments are Made Compounding is Less Frequent than Payments Equivalence Calculations with Continuous Compounding Discrete-Payment Transactions with Continuous Compounding Continuous-Funds Flow with Continuous Compounding Changing Interest Rates Single Sums of Money Series of Cash Flows Debt Management Commercial Loans Loan versus Lease Financing Home Mortgage Investing in Financial Assets Investment Basics How to Determine Your Expected Return Investing in Bonds 212 Summary 220 Problems 221 Short Case Studies 230 PART 2 EVALUATION OF BUSINESS AND ENGINEERING ASSETS 233 Chapter 5 Present-Worth Analysis Describing Project Cash Flows Loan versus Project Cash Flows Independent versus Mutually Exclusive Investment Projects 5.2 Initial Project Screening Method Payback Period: The Time It Takes to Pay Back Benefits and Flaws of Payback Screening Discounted Payback Period Where Do We Go From Here?
5 IT" 12 Contents 5.3 Discounted Cash Flow Analysis Net-Present-Worth Criterion Meaning of Net Present Worth Basis for Selecting the MARR Variations of Present-Worth Analysis Future-Worth Analysis Capitalized Equivalent Method Comparing Mutually Exclusive Alternatives Meaning of Mutually Exclusive and "Do Nothing" Service Projects versus Revenue Projects Application of Investment Criteria Scale of Investment Analysis Period Analysis Period Matches Project Lives Analysis Period Differs from Project Lives Analysis Period is Not Specified 276 Summary 279 Problems 280 Short Case Studies 293 Chapter 6 Annual Equivalent-Worth Analysis Annual Equivalent-Worth Criterion Fundamental Decision Rule Annual-Worth Calculation with Repeating Cash Flow Cycles Comparing Mutually Exclusive Alternatives Capital Costs Versus Operating Costs Applying Annual-Worth Analysis Benefits of AE Analysis Unit Profit or Cost Calculation Make-or-Buy Decision Outsourcing Decisions Pricing the Use of an Asset Life-Cycle Cost Analysis Design Economics 320 Summary 331 Problems 331 Short Case Studies 342
6 Contents 13 Chapter 7 Rate-of-Return Analysis Rate of Return Return on Investment Return on Invested Capital 7.2 Methods for Finding the Rate of Return Simple versus Nonsimple Investments Predicting Multiple i*s Computational Methods 7.3 Internal-Rate-of-Return Criterion Relationship to PW Analysis Net-Investment Test: Pure versus Mixed Investments Decision Rule for Pure Investments Decision Rule for Mixed Investments Modified Internal Rate of Return (MIRR) 7.4 Mutually Exclusive Alternatives Flaws in Project Ranking by IRR Incremental Investment Analysis Handling Unequal Service Lives Summary Problems Short Case Studies PART 3 ANALYSIS OF PROJECT CASH FLOWS 409 Chapter 8 Cost Concepts Relevant to Decision Making General Cost Terms Manufacturing Costs Nonmanufacturing Costs Classifying Costs for Financial Statements Period Costs Product Costs Cost Classification for Predicting Cost Behavior Volume Index Cost Behaviors Cost-Volume-Profit Analysis 424
7 14 Contents 8.4 Future Costs for Business Decisions Differential Cost and Revenue Opportunity Cost Sunk Costs Marginal Cost Estimating Profit from Operation Calculation of Operating Income Annual Sales Budget for a Manufacturing Business Preparing the Annual Production Budget Preparing the Cost-of-Goods-Sold Budget Preparing the Nonmanufacturing Cost Budget Putting It All Together: The Budgeted Income Statement Looking Ahead 449 Summary 449 Problems 450 Short Case Studies 453 Chapter 9 Depreciation and Corporate Taxes Asset Depreciation Economic Depreciation Accounting Depreciation Factors Inherent in Asset Depreciation Depreciable Property Cost Basis Useful Life and Salvage Value Depreciation Methods: Book and Tax Depreciation Book Depreciation Methods Straight-Line Method Declining Balance Method Units-of-Production Method Tax Depreciation Methods MACRS Depreciation MACRS Depreciation Rules Depletion Cost Depletion Percentage Depletion Repairs or Improvements Made to Depreciable Assets Revision of Book Depreciation Revision of Tax Depreciation 485
8 Contents Corporate Taxes Income Taxes on Operating Income Tax Treatment of Gains or Losses on Depreciable Assets Disposal of a MACRS Property Calculations of Gains and Losses on MACRS Property Income Tax Rate to Be Used in Economic Analysis Incremental Income Tax Rate Consideration of State Income Taxes The Need For Cash Flow in Engineering Economic Analysis Net Income versus Net Cash Flow Treatment of Noncash Expenses 501 Summary 504 Problems 506 Short Case Studies 514 Chapter 10 Developing Project Cash Flows Cost-Benefit Estimation for Engineering Projects Simple Projects Complex Projects Incremental Cash Flows Elements of Cash Outflows Elements of Cash Inflows Classification of Cash Flow Elements Developing Cash Flow Statements When Projects Require Only Operating and Investing Activities When Projects Require Working-Capital Investments When Projects are Financed with Borrowed Funds When Projects Result in Negative Taxable Income When Projects Require Multiple Assets Generalized Cash-Flow Approach Setting up Net Cash-Flow Equations Presenting Cash Flows in Compact Tabular Formats Lease-or-Buy Decision 547 Summary 553 Problems 554 Short Case Studies 563
9 16 Contents PART 4 HANDLING RISK AND UNCERTAINTY 567 Chapter I I Inflation and Its Impact on Project Cash Flows Meaning and Measure of Inflation Measuring Inflation Actual versus Constant Dollars Equivalence Calculations Under Inflation Market and Inflation-Free Interest Rates Constant-Dollar Analysis Actual-Dollar Analysis Mixed-Dollar Analysis Effects of Inflation on Project Cash Flows Multiple Inflation Rates Effects of Borrowed Funds Under Inflation Rate-of-Return Analysis Under Inflation Effects of Inflation on Return on Investment Effects of Inflation on Working Capital 596 Summary 598 Problems 600 Short Case Studies 605 Chapter 12 Project Risk and Uncertainty Origins of Project Risk Methods of Describing Project Risk Sensitivity (What-if) Analysis Break-Even Analysis Scenario Analysis Probability Concepts for Investment Decisions Assessment of Probabilities Summary of Probabilistic Information Joint and Conditional Probabilities Covariance and Coefficient of Correlation Probability Distribution of NPW Procedure for Developing an NPW Distribution Aggregating Risk over Time Decision Rules for Comparing Mutually Exclusive Risky Alternatives 645
10 Contents Risk Simulation Computer Simulation Model Building Monte Carlo Sampling Simulation Output Analysis Risk Simulation with Oracle Crystal Ball Decision Trees and Sequential Investment Decisions Structuring a Decision-Tree Diagram Worth of Obtaining Additional Information Decision Making after Having Imperfect Information 673 Summary 678 Problems 679 Short Case Studies 689 Chapter 13 Real-Options Analysis Risk Management: Financial Options Features of Financial Options Buy Call Options When You Expect the Price to Go Up Buy Put Options When You Expect the Price to Go Down Option Strategies Buying Calls to Reduce Capital That is at Risk Protective Puts as a Hedge Option Pricing Replicating-Portfolio Approach with a Call Option Risk-Free Financing Approach Risk-Neutral Probability Approach Put-Option Valuation Two-Period Binomial Lattice Option Valuation Multiperiod Binomial Lattice Model Black-Scholes Option Model Real-Options Analysis How is Real Options Analysis Different? A Conceptual Framework for Real Options in Engineering Economics Simple Real-Option Models Option to Defer Investment Patent and License Valuation Growth Option Option to Expand 728
11 18 Contents Scale-Up Option Compound Options Estimating Volatility at the Project Level Mathematical Relationship between er and <r T Estimating V T Distribution 740 Summary 746 Problems 747 Short Case Studies 751 PART 5 SPECIAL TOPICS IN ENGINEERING ECONOMICS 755 Chapter 14 Replacement Decisions Replacement Analysis Fundamentals Basic Concepts and Terminology Opportunity Cost Approach to Comparing Defender and Challenger Economic Service Life Replacement Analysis when the Required Service is Long Required Assumptions and Decision Frameworks Replacement Strategies under the Infinite Flanning Horizon Replacement Strategies under the Finite Flanning Horizon Consideration of Technological Change Replacement Analysis with Tax Considerations 780 Summary 794 Problems 795 Short Case Studies 805 Chapter 15 Capital-Budgeting Decisions Methods of Financing Equity Financing Debt Financing Capital Structure Cost of Capital Cost of Equity Cost of Debt Calculating the Cost of Capital 827
12 Contents Choice of Minimum Attractive Rate of Return Choice of MARR when Project Financing is Known Choice of MARR when Project Financing is Unknown Choice of MARR under Capital Rationing Capital Budgeting Evaluation of Multiple Investment Alternatives Formulation of Mutually Exclusive Alternatives Capital-Budgeting Decisions with Limited Budgets 839 Summary 847 Problems 848 Short Case Studies 852 Chapter 16 Economic Analysis in the Service Sector What Is The Service Sector? Characteristics of the Service Sector Difficulty of Pricing Service Economic Analysis in The Public Sector What is Benefit-Cost Analysis? Framework of Benefit-Cost Analysis Valuation of Benefits and Costs Quantifying Benefits and Costs Difficulties Inherent in Public Project Analysis Benefit-Cost Ratios Definition of Benefit-Cost Ratio Profitability Index (Net BJC Ratio) Relationship Among B/C Ratio, Profitability Index, and NPW Comparing Mutually Exclusive Alternatives: Incremental Analysis Analysis of Public Projects Based on Cost-Effectiveness Cost-Effectiveness Studies in the Public Sector A Cost-Effectiveness Case Study Economic Analysis in Health-Care Service Economic Evaluation Tools Cost-Effectiveness Analysis in the Healthcare Sector Cost-Utility Analysis 896 Summary 899 Problems 900 Short Case Studies 904
13 Contents Appendix A Fundamentals of Engineering Review Questions Appendix B Interest Factors for Discrete Compound Appendix C Values of the Standard Normal Distribution Function Index
NINTH EDITION FUNDAMENTALS OF. John C. Hüll
NINTH EDITION FUNDAMENTALS OF FUTURES AND OPTIONS MARKETS John C. Hüll Maple Financial Group Professor of Derivatives and Risk Management Joseph L. Rotman School of Management University of Toronto PEARSON
More informationFoundations of Finance
Foundations of Finance The Logic and Practice of Financial Management Eighth Edition Global Edition Virginia Polytechnic Institute and State University,R. B. Pamplin Professor of Finance J Baylor University
More informationFUNDAMENTALS OF FUTURES AND OPTIONS MARKETS
SEVENTH EDITION FUNDAMENTALS OF FUTURES AND OPTIONS MARKETS GLOBAL EDITION John C. Hull / Maple Financial Group Professor of Derivatives and Risk Management Joseph L. Rotman School of Management University
More informationThe Logic and Practice of Financial Management. Ninth Edition. Global Edition
Foundations of Finance The Logic and Practice of Financial Management Ninth Edition Global Edition Arthur J. Keown Virginia Polytechnic Institute and State University R. B. Pamplin Professor of Finance
More informationUNDERSTANDING FINANCIAL STATEMENTS
UNDERSTANDING FINANCIAL STATEMENTS N I N T H E D I T I O N Lyn M. Fraser Aileen Ormiston Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan
More informationFoundations of Finance
GLOBAL EDITION Keown Martin Petty Foundations of Finance NINTH EDITION Arthur J. Keown John D. Martin J. William Petty Foundations of Finance The Logic and Practice of Financial Management Ninth Edition
More informationUNDERSTANDING FINANCIAL STATEMENTS ELEVENTH EDITION. Lyn M. Fräser. Alleen Ormiston PEARSON
UNDERSTANDING FINANCIAL STATEMENTS ELEVENTH EDITION Lyn M. Fräser Alleen Ormiston PEARSON Boston Columbus Indianapolis New York San Francisco Hoboken Amsterdam Cape Town Dubai London Madrid Milan Munich
More informationManagerial Accounting
Managerial Accounting Making Decisions and Motivating Performance Srikant M. Datar Madhav V. Rajan PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai
More informationFrank J. Fabozzi, CFA
SEVENTH EDITION Frank J. Fabozzi, CFA Professor in the Practice of Finance Yale School of Management Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid Mexico City Munich Paris
More informationSIXTEENTH EDITION. Introduction to MANAGEMENT ACCOUNTING GLOBAL EDITION. Charles T. Horngren Stanford University
A ^> (o 3 > S SIXTEENTH EDITION Introduction to MANAGEMENT ACCOUNTING GLOBAL EDITION Charles T. Horngren Stanford University Gary L. Sundem University of Washington - Seattle David Burgstahler University
More informationManagerial Accounting
Managerial Accounting Third Edition Karen W si ken Braun Case Western Reserve University Wendy M. Tietz Kent State University PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River
More informationFINANCIAL ACCOUNTING. Jeffrey Waybright. Robert Kemp. Spokane Community College. University of Virginia
FINANCIAL ACCOUNTING Jeffrey Waybright Spokane Community College Robert Kemp University of Virginia Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London
More informationENGINEERING ECONOMIC ANALYSIS
ENGINEERING ECONOMIC ANALYSIS r T ~' ELEVENTH EDITION Donald G. Newnan San Jose State University Ted G. Eschenbach University of Alaska Anchorage Jerome P. Lavelle North Carolina State t University New
More informationMastering Investment Banking Securities
Mastering Investment Banking Securities A practical guide to structures, products, pricing and calculations NATASHA KOZUL Financial Times Prentice Hall is an imprint of Harlow, England London New York
More informationInternational Edition. Tenth Edition. William Henry Scott III Associate Professor of Entrepreneurship Presbyterian College
International Edition Tenth Edition William Henry Scott III Associate Professor of Entrepreneurship Presbyterian College Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam
More informationPeter Atrill. Eddie McLaney. and PEARSON
Peter Atrill and Eddie McLaney PEARSON Harlow, England London New York Boston San Francisco Toronto Sydney Auckland Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town Sao Paulo Mexico City Madrid
More informationc Financial Accounting
c Financial Accounting A Business Process Approach Rollins College^ Crummer Graduate School of Business THIRP-- EDITION Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam
More informationWalter T. Harrison Jr. Baylor University. Charles T. Horngren Stanford University. C. William (Bill) Thomas Baylor University
G O Ninth Edition Walter T. Harrison Jr. Baylor University Charles T. Horngren Stanford University C. William (Bill) Thomas Baylor University PEARSON Boston Columbus Indianapolis New York San Francisco
More informationHEALTH. CHARLES E. PHELPS University of Rochester PEARSON
FIFTH EDITION HEALTH ECONOMICS CHARLES E. PHELPS University of Rochester PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich
More informationMANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING SECOND EDITION Karen Wilken Braun Case Western Reserve University Wendy M. Tietz Kent State University Walter T. Harrison, Jr. Baylor University Prentice Hall Boston Columbus Indianapolis
More informationThird Edition. Global Edition. Robert Kemp University of Virginia. Jeffrey Waybright Spokane Community College
Financial Äccounting Third Edition Global Edition Robert Kemp University of Virginia Jeffrey Waybright Spokane Community College PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle
More informationHORNGREN'S FIFTH EDITION. Tracie Miller-Nobles Austin Community College. Brenda Mattison Tri-County Technical College
HORNGREN'S Financial & Managerial Accounting FIFTH EDITION Tracie Miller-Nobles Austin Community College Brenda Mattison Tri-County Technical College Ella Mae Matsumura University of Wisconsin-Madison
More informationINTERNATIONAL ECONOMICS
Ninth Edition INTERNATIONAL ECONOMICS Steven Husted University of Pittsburgh Michael Melvin Arizona State University and BlackRock International Edition contributions by Atanu Rakshit Washington and Lee
More informationINTERNATIONAL ACCOUNTING
A Seventh Edition INTERNATIONAL ACCOUNTING INTERNATIONAL EDITION Frederick D. S. Choi New York University Gary K. Meek Oklahoma State University Boston Columbus Indianapolis New York San Francisco Upper
More informationExchange Rates and. International Finance. Lawrence S. Copeland
Exchange Rates and International Finance Lawrence S. Copeland Marlow, England London New York Boston San Francisco Toronto Sydney Auckland Singapore Hong Kong Tokyo Seoul Taipei New Delhi Cape Town Säo
More informationChapter 7 Rate of Return Analysis
Chapter 7 Rate of Return Analysis Rate of Return Methods for Finding ROR Internal Rate of Return (IRR) Criterion Incremental Analysis Mutually Exclusive Alternatives Why ROR measure is so popular? This
More informationCORPORATE FINANCIAL MANAGEMENT
GLEN ARNOLD BSc (E con), PhD CORPORATE FINANCIAL MANAGEMENT FIFTH EDITION PEARSON Harlow, England London New York Boston San Francisco Toronto Sydney * Auckland * Singapore Hong Kong Tokyo Seoul Taipei
More informationTenth Edition. Christopher Nobes and Robert Parker
Tenth Edition Christopher Nobes and Robert Parker Prentice Hall FINANCIAL TIMES /in/mprintof Pearson Education Harlow, England London New York Boston San Francisco Toronto Sydney Tokyo Singapore Hong Kong
More informationLeland Blank, P. E. Texas A & M University American University of Sharjah, United Arab Emirates
Eighth Edition ENGINEERING ECONOMY Leland Blank, P. E. Texas A & M University American University of Sharjah, United Arab Emirates Anthony Tarquin, P. E. University of Texas at El Paso Mc Graw Hill Education
More informationEngineering Economics
Engineering Economics Lecture 7 Er. Sushant Raj Giri B.E. (Industrial Engineering), MBA Lecturer Department of Industrial Engineering Contemporary Engineering Economics 3 rd Edition Chan S Park 1 Chapter
More informationPrentice Hall s Federal Taxation 2012: Corporations, Partnerships, Estates, & Trusts
Instructor s Resource Manual Caroline Strobel Prentice Hall s Federal Taxation 2012: Corporations, Partnerships, Estates, & Trusts Kenneth E. Anderson Thomas R. Pope John L. Kramer Prentice Hall Boston
More informationRAYMOND M. BROOKS. Oregon State University
RAYMOND M. BROOKS Oregon State University Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico
More informationCOMPARATIVE INTERNATIONAL ACCOUNTING
Eleventh Edition COMPARATIVE INTERNATIONAL ACCOUNTING Christopher Nobes and Robert Parker Financial Times Prentice Hall is an imprint of Harlow, England London New York Boston San Francisco Toronto Sydney
More informationEuropean Integration
European Integration Methods and Economic Analysis Third Edition JACQUES PELKMANS Prentice Hall FINANCIAL TIMES An imprint of Pearson Education Harlow, England London New York Boston San Francisco Toronto
More informationTaxation. Finance Act Twenty-second edition. Alan Melville. FCA, BSc, Cert. Ed. PEARSON
Taxation Finance Act 2016 Twenty-second edition Alan Melville FCA, BSc, Cert. Ed. PEARSON Marlow, England London New York Boston San Francisco Toronto Sydney Auckland Singapore Hong Kong Tokyo Seoul Taipei
More informationComparing Mutually Exclusive Alternatives
Comparing Mutually Exclusive Alternatives Lecture No. 18 Chapter 5 Contemporary Engineering Economics Copyright 2016 Comparing Mutually Exclusive Projects: Basic Terminologies Mutually Exclusive Projects
More informationMANAGERIAL ACCOUNTING
MANAGERIAL ACCOUNTING DECISION MAKING AND PERFORMANCE MANAGEMENT Fourth Edition Ray Proctor With contributions from Nigel Burton, Adrian Pierce and Gary Burmiston V PEARSON Hartow, England London " New
More informationENGINEERING ECONOMY. William G. Sullivan. Fourteenth Edition. Prentice Hall. Virginia Polytechnic institute and State University
ENGINEERING ECONOMY Fourteenth Edition William G. Sullivan Virginia Polytechnic Institute and State University, Emeritus Elin M. Wicks Wicks and Associates C. Patrick Koelling Virginia Polytechnic institute
More informationCHAPTER 2 LITERATURE REVIEW
CHAPTER 2 LITERATURE REVIEW Capital budgeting is the process of analyzing investment opportunities and deciding which ones to accept. (Pearson Education, 2007, 178). 2.1. INTRODUCTION OF CAPITAL BUDGETING
More information'.fc 1. Chapter 1 Elements of Financial Statements 2. Chapter 2 Understanding the Accounting Cycle 40. Questions 23. Second Accounting Cycle 50
Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney
More informationMastering Derivatives Markets
Mastering Derivatives Markets A step-by-step guide to the products, applications and risks Fourth Edition FRANCESCA TAYLOR Financial Times Prentice Hall is an imprint of Harlow, England London New York
More informationCOMPARATIVE INTERNATIONAL ACCOUNTING. Christopher Nobes. and. Robert Parker
COMPARATIVE INTERNATIONAL ACCOUNTING Christopher Nobes and Robert Parker PEARSON Marlow, England London New York Boston San Francisco Toronto Sydney Auckland Slngapore Hong Kong Tokyo Seoul Taipei New
More informationCORPORATE FINANCE: THE CORE
CORPORATE FINANCE: THE CORE JONATHAN' BERK UNIVERSITY OF CALIFORNIA, BERKHI.EY PETER DEMARZO STANFORD UNIVE RSITY Boston San Francisco New York London Toronto Sydney Tokyo Singapore Madrid Mexico City
More informationGOVERNMENTAL AND NONPROFIT ACCOUNTING
GOVERNMENTAL AND NONPROFIT ACCOUNTING Theory and Practice TENTH EDITION Robert J. Freeman Texas Tech University Craig D. Shoulders Western Carolina University Gregory S. Allison University of North Carolina
More informationFrank J. Fabozzi. Franco Modigliani. Yale School of Management. Sloan School of Management, Massachusetts Institute of Technology
FOURTH EDITION Frank J. Fabozzi Yale School of Management Franco Modigliani Sloan School of Management, Massachusetts Institute of Technology v Frank J.Jones College of Business, San Jose State University
More informationTim Hale. Simpler decisions for better results. Second Edition. Financial Times Prentice Hall is an imprint of
Tim Hale Simpler decisions for better results Second Edition Financial Times Prentice Hall is an imprint of Harlow, England London New York Boston San Francisco Toronto Sydney Singapore Hong Kong Tokyo
More informationEuropean Integration
A 342245 European Integration Methods and Economic Analysis Second Edition JACQUES PELKMANS /-f,./ FINANCIAL TIMES Prentice Hall An imprint of Pearson Education Harlow, England London New York Reading,
More informationDepartment of Humanities. Sub: Engineering Economics and Costing (BHU1302) (4-0-0) Syllabus
Department of Humanities Sub: Engineering Economics and Costing (BHU1302) (4-0-0) Syllabus Module I (10 Hours) Time value of money : Simple and compound interest, Time value equivalence, Compound interest
More informationAMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Academic Press is an Imprint of Elsevier
Computational Finance Using C and C# Derivatives and Valuation SECOND EDITION George Levy ELSEVIER AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO
More informationSchool of Engineering University of Guelph. ENGG*3240 Engineering Economics Course Description & Outline - Fall 2008
School of Engineering University of Guelph ENGG*3240 Engineering Economics Course Description & Outline - Fall 2008 CALENDAR DESCRIPTION Principle of project evaluation, analysis of capital and operating
More informationImad A. Moosa. Department of Accounting and Finance Mortash University
Imad A. Moosa Department of Accounting and Finance Mortash University Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid
More informationLecture 5 Present-Worth Analysis
Seg2510 Management Principles for Engineering Managers Lecture 5 Present-Worth Analysis Department of Systems Engineering and Engineering Management The Chinese University of Hong Kong 1 Part I Review
More informationTaxation Finance Act 2009
Taxation Finance Act 2009 Fifteenth edition Alan Melville FCA, BSc, Cert. Ed. Financial Times Prentice Halt is an imprint of Harlow, England London New York Boston San Francisco Toronto Sydney Singapore
More informationMSCI Global ESG Indexes Methodology
Contents 1 Introduction... 3 2 ESG Research Framework... 3 MSCI ESG Intangible Value Assessment... 3 MSCI ESG Impact Monitor... 3 3 Constructing the MSCI Global ESG Indexes... 4 3.1 Underlying Universe...
More informationChapter 11 Cash Flow Estimation and Risk Analysis ANSWERS TO END-OF-CHAPTER QUESTIONS
Chapter 11 Cash Flow Estimation and Risk Analysis ANSWERS TO END-OF-CHAPTER QUESTIONS 11-1 a. Project cash flow, which is the relevant cash flow for project analysis, represents the actual flow of cash,
More informationwatsonwyatt.com Compensation Discussion and Analysis Scorecard
Compensation Discussion and Analysis Scorecard The Securities and Exchange Commission s (SEC) proxy disclosure rules, effective for 2007 proxy filings, require extremely detailed and complicated disclosures
More informationIS YOUR U.S. BENCHMARK STILL RELEVANT? THE MODERN INDEX STRATEGY. msci.com
IS YOUR U.S. BENCHMARK STILL RELEVANT? THE MODERN INDEX STRATEGY msci.com MSCI DELIVERS THE MODERN INDEX STRATEGY The MSCI USA Index is designed to measure the performance of the largeand mid-cap segments
More informationFinancial and Managerial Accounting
edition Financial and Managerial Accounting Information for Decisions -- -.I John J. Wild University of Wisconsin at Madison Ken W. Shaw University of Missouri at Columbia Barbara Chiappetta Nassau Community
More informationMSCI USA Broad ESG Index
Methodology July 2010 2010 MSCI All rights reserved 1 of 7 1 INTRODUCTION The is a free float-adjusted market capitalization weighted index designed to provide exposure to companies that have high Environmental,
More informationMSCI Short and Leveraged Daily Indexes Methodology
Methodology Table of Contents 1. Introduction... 3 2. Short Daily Index Methodology Highlights... 3 2.1 Rationale for Including Borrowing Costs in Short Daily Indexes... 4 3. Leveraged Daily Index Methodology
More informationMarket Insight When Hurricane Sandy Closed Wall Street
Market Insight The Impact of Storm-Related Market Closures on Risk Analysis Christopher Finger and Oleg Ruban Christopher.Finger@ Oleg.Ruban@ Abstract: The US equity market closures necessitated by Hurricane
More informationEnhancements to the MSCI 10/40 Equity Indices
Enhancements to the MSCI 10/40 Equity Indices Consultation Document April 2005 Introduction to the consultation MSCI is consulting with investors on various approaches to enhance the MSCI 10/40 Indices
More information2/22/2017. Engineering Economics Knowledge. Engineering Economics FE REVIEW COURSE SPRING /22/2017
FE REVIEW COURSE SPRING 2017 Engineering Economics Paige Harris 2/22/2017 Engineering Economics Knowledge 4 6 problems Discounted cash flow Equivalence, PW, equivalent annual worth, FW, rate of return
More informationFinancial Accounting and Reporting
Financial Accounting and Reporting NINTH EDITION Barry Elliott and Jamie Elliott Prentice Hall FINANCIAL TIMES /in imprint of Pearson Education Harlow, England London New York Boston San Francisco Toronto
More informationConsultation on Potential Enhancements to the MSCI Hedged Indices. January 2009
Consultation on Potential Enhancements to the MSCI Hedged Indices January 2009 Overview MSCI is consulting with investors to better understand the need for potential enhancements to the MSCI Hedged Indices
More informationMSCI Short and Leveraged Daily Indices Methodology
MSCI Short and Leveraged Daily Indices Methodology 1. INTRODUCTION The MSCI Short and Leveraged Daily Indices aim to replicate the payoff to daily shorting and leveraged investment strategies, respectively.
More informationMSCI CANADA HIGH DIVIDEND YIELD 10% SECURITY CAPPED INDEX METHODOLOGY
INDEX METHODOLOGY MSCI CANADA HIGH DIVIDEND YIELD 10% SECURITY CAPPED INDEX METHODOLOGY Rahman, Atiqur May 2017 CONTENTS 1 Introduction... 3 2 Constructing and Maintaining the MSCI Canada High Dividend
More informationMICHAEL J. MCNAMARA THIRTEENTH EDITION GLOBAL EDITION
Prtnctples of RISK MANAGEMENT AND INSURANCE GEORGE E. REJDA MICHAEL J. MCNAMARA THIRTEENTH EDITION GLOBAL EDITION Pearson Marlow, England London New York Boston San Francisco Toronto Sydney Dubai Singapore
More informationLOOKING TO EXPAND YOUR INVESTMENT HORIZON? THE MODERN INDEX STRATEGY. msci.com
LOOKING TO EXPAND YOUR INVESTMENT HORIZON? THE MODERN INDEX STRATEGY msci.com MSCI DELIVERS THE MODERN INDEX STRATEGY The MSCI Emerging Markets Index is designed to represent the performance of large-
More informationMichael (Xiaochen) Sun, PHD. November msci.com
Build Risk Parity Portfolios with Correlation Risk Attribution (x-σ-ρ) Michael (Xiaochen) Sun, PHD The concept of portfolio efficiency, where a rational institutional investor is expected to optimize his
More informationChina A-Shares: Too Big to Ignore
RESEARCH SPOTLIGHT China A-Shares: Too Big to Ignore China A-shares make up 34% of the total China investment opportunity set yet are often missing from a typical institutional investor s portfolio due
More informationMay Global Growth Strategy
May 2012 Global Growth Strategy Jones Lang LaSalle Global Growth Strategy G1 G3 Build our local and regional leasing and capital markets businesses G5 Connections Capture the leading share of global capital
More informationMSCI EMERGING MARKETS HORIZON INDEX METHODOLOGY
INDEX METHODOLOGY MSCI EMERGING MARKETS HORIZON INDEX METHODOLOGY July 2014 JULY 2014 CONTENTS 1 Introduction... 3 2 Constructing MSCI Emerging Markets Horizon Index... 4 2.1 Calculating Weights for Each
More informationMSCI KLD 400 SOCIAL INDEX METHODOLOGY
INDEX METHODOLOGY MSCI KLD 400 SOCIAL INDEX METHODOLOGY September 2017 SEPTEMBER 2017 CONTENTS 1 Introduction... 3 2 MSCI ESG Research framework... 4 2.1 MSCI ESG Ratings... 4 2.2 MSCI ESG Controversies...
More informationDOES YOUR PORTFOLIO REFLECT EUROPE? THE MODERN INDEX STRATEGY. msci.com
DOES YOUR PORTFOLIO REFLECT EUROPE? THE MODERN INDEX STRATEGY msci.com MSCI DELIVERS THE MODERN INDEX STRATEGY The MSCI Europe Index is designed to represent the performance of large- and mid-cap equities
More information*Efficient markets assumed
LECTURE 1 Introduction To Corporate Projects, Investments, and Major Theories Corporate Finance It is about how corporations make financial decisions. It is about money and markets, but also about people.
More informationINDEX METHODOLOGY METHODOLOGY BOOK FOR: - MSCI EURO SELECT DIVIDEND INDEX 10% RISK CONTROL DECREMENT INDEX
INDEX METHODOLOGY METHODOLOGY BOOK FOR: - MSCI EURO SELECT DIVIDEND INDEX - MSCI EURO SELECT DIVIDEND 10% RISK CONTROL DECREMENT INDEX November 2017 CONTENTS 1 Introduction... 3 2 Constructing the Indexes...
More informationBFC2140: Corporate Finance 1
BFC2140: Corporate Finance 1 Table of Contents Topic 1: Introduction to Financial Mathematics... 2 Topic 2: Financial Mathematics II... 5 Topic 3: Valuation of Bonds & Equities... 9 Topic 4: Project Evaluation
More informationNORTHERN TRUST INDEX ON MSCI EMERGING MARKETS*
INDEX METHODOLOGY NORTHERN TRUST INDEX ON MSCI EMERGING MARKETS* * A custom index calculated by MSCI based on the exclusion list provided by Northern Trust August 2016 AUGUST 2016 CONTENTS 1 Introduction...3
More informationMSCI JAPAN IMI CUSTOM LIQUIDITY AND YIELD LOW VOLATILITY INDEX METHODOLOGY
INDEX METHODOLOGY MSCI JAPAN IMI CUSTOM LIQUIDITY AND YIELD LOW VOLATILITY INDEX METHODOLOGY October 2015 OCTOBER 2015 CONTENTS 1 Introduction... 3 2 Index Construction Methodology... 4 2.1 Defining the
More informationConverting Scores into Alphas
www.mscibarra.com Converting Scores into Alphas A Barra Aegis Case Study May 2010 Ilan Gleiser Dan McKenna 2010. All rights reserved. 1 of 13 Abstract The goal of this product insight is to illustrate
More informationHARNESSING THE POWER OF FACTOR MODELS
HARNESSING THE POWER OF FACTOR MODELS Enabling an Integrated View of Risk and Return Jean-Maurice Ladure, CFA Head of Equity Applied Research in EMEA, MSCI October 2017 2015 MSCI Inc. All rights reserved.
More informationTEMPORARY TREATMENT OF UNEQUAL VOTING STRUCTURES IN THE MSCI EQUITY INDEXES
TEMPORARY TREATMENT OF UNEQUAL VOTING STRUCTURES IN THE MSCI EQUITY INDEXES January 2018 2017 MSCI Inc. All rights reserved. Please refer to the disclaimer at the end of this document. SUMMARY As announced
More informationUNIT I INTRODUCTION TO ECONOMICS PART A (2 MARKS)
UNIT I INTRODUCTION TO ECONOMICS PART A (2 MARKS) 1. What is elasticity of Demand? Elasticity of demand may be defined as the degree of responsiveness of quantity demanded to a Change in price. 2. Define
More informationMSCI CANADA HIGH DIVIDEND YIELD 10% SECURITY CAPPED INDEX METHODOLOGY
INDEX METHODOLOGY MSCI CANADA HIGH DIVIDEND YIELD 10% SECURITY CAPPED INDEX METHODOLOGY Rahman, Atiqur November 2017 CONTENTS 1 Introduction... 3 2 Constructing and Maintaining the MSCI Canada High Dividend
More informationFundamental Financial and Manageria Accounting Concepts
Fundamental Financial and Manageria Accounting Concepts 1-; *Th
More informationPM013: Project Management Detailed Engineering for Capital Projects
PM013: Project Management Detailed Engineering for Capital Projects PM013 Rev.001 CMCT COURSE OUTLINE Page 1 of 6 Training Description: Large capital-intensive projects require substantial and often risky
More informationPMP045 Project Management Detailed Engineering for Capital Projects
PMP045 Project Management Detailed Engineering for Capital Projects H.H. Sheik Sultan Tower (0) Floor Corniche Street Abu Dhabi U.A.E www.ictd.ae ictd@ictd.ae Course Introduction: Large capital-intensive
More informationUPDATED IAA EDUCATION SYLLABUS
II. UPDATED IAA EDUCATION SYLLABUS A. Supporting Learning Areas 1. STATISTICS Aim: To enable students to apply core statistical techniques to actuarial applications in insurance, pensions and emerging
More informationMSCI 25/50 INDEXES METHODOLOGY
INDEX METHODOLOGY MSCI 25/50 INDEXES METHODOLOGY February 2014 FEBRUARY 2014 CONTENTS 1 Introduction to the MSCI 25/50 Indexes... 3 Introduction... 3 2 Index Objectives and Guiding Principles... 4 2.1
More informationMSCI USA CATHOLIC VALUES INDEX METHODOLOGY
INDEX METHODOLOGY MSCI USA CATHOLIC VALUES INDEX METHODOLOGY May 2016 MAY 2016 CONTENTS 1 Introduction... 3 2 MSCI ESG Research Framework... 4 2.1 MSCI ESG Ratings... 4 2.2 MSCI ESG Controversies... 4
More informationADVANCED MODERN MACROECONOMICS
ADVANCED MODERN MACROECONOMICS ANALYSIS AND APPLICATION Max Gillman Cardiff Business School, Cardiff University Financial Times Prentice Halt is an imprint of Harlow, England London New York Boston San
More informationMSCI ACWI SOCIALLY RESPONSIBLE INDEX, BASED ON SEB SRI POLICY B
INDEX METHODOLOGY MSCI ACWI SOCIALLY RESPONSIBLE INDEX, BASED ON SEB SRI POLICY B April 2017 APRIL 2017 CONTENTS 1 Introduction... 3 2 Index Construction Methodology... 4 2.1 Screening... 4 2.2 Weighting
More informationMSCI MARKET NEUTRAL BARRA FACTOR INDEXES METHODOLOGY
INDEX METHODOLOGY MSCI MARKET NEUTRAL BARRA FACTOR INDEXES METHODOLOGY November NOVEMBER CONTENTS 1 Introduction... 3 2 Main Characteristics of MSCI Market Neutral Barra Factor Indexes... 4 3 Constructing
More informationOTC Derivatives under Central Clearing: Risk Measures for Liquidity Constraints
Market Insight : Risk Measures for Liquidity Constraints Christopher Finger Christopher.Finger@ Abstract: The market for Over-the-Counter derivatives is transforming from a market of mostly bilateral contracts
More informationMSCI RUSSIA SELECT SIZE & LIQUIDITY 10/40 INDEX METHODOLOGY
INDEX METHODOLOGY MSCI RUSSIA SELECT SIZE & LIQUIDITY 10/40 INDEX METHODOLOGY June 2016 JUNE 2016 CONTENTS 1 Introduction... 3 2 Constructing the MSCI Russia Select Size & Liquidity 10/40 Index4 2.1 Defining
More informationMSCI GLOBAL EX CONTROVERSIAL WEAPONS INDEXES METHODOLOGY
INDEX METHODOLOGY MSCI GLOBAL EX CONTROVERSIAL WEAPONS INDEXES METHODOLOGY September 2017 SEPTEMBER 2017 CONTENTS 1 Introduction... 3 2 Screening Criteria... 4 3 Constructing the MSCI Global ex Controversial
More informationMSCI MARKET NEUTRAL BARRA FACTOR INDEXES METHODOLOGY
INDEX METHODOLOGY MSCI MARKET NEUTRAL BARRA FACTOR INDEXES METHODOLOGY September SEPTEMBER CONTENTS 1 Introduction... 3 2 Main Characteristics of MSCI Market Neutral Barra Factor Indexes... 4 3 Constructing
More informationVolatility Regimes in the US
Audrey Costabile and Zoltán Nagy Audrey.Costabile@ Zoltan.Nagy@ Introduction Despite extensive stimulus efforts of central banks, governments, and the IMF, it is still not clear if the global and the US
More informationSmall Cap Allocation for Japanese Investors December 2007
Small Cap Allocation for Japanese Investors Introduction For many years, the equity allocation of Japanese institutional investors has typically been split between domestic and international assets and
More information