Using Real Options Theory to Irrigation Dam Investment Analysis: An Application of Binomial Option Pricing Model

This paper demonstrates the utility of the real options approach to irrigation dam investment analysis. The main objective is to show how to calculate the option values of selected options that may be available to managers of irrigation dam investments. The paper provides an empirical application, which compares an irrigation dam investment using the static Net Present Value (NPV) model and the real options approach and shows how it can be adopted to model uncertainty and managerial flexibility in dam management. Four management options are used for the real options approach: an option to delay the investment, an option to enlarge the dam, an option to abandon the dam, and multiple options that evaluated all three options together. All options were evaluated using the binomial option pricing model, where water values are assumed to follow a multiplicative binomial process. The analysis show that although the traditional NPV approach accepted the investment as profitable the option approach provided better results showing that all three options were highly valuable if exercised. When real options are considered, the traditional NPV model for assessing the profitability of a dam investment may fail to provide an adequate decision-making framework because it does not properly value management’s ability to adjust to shocks in the economy, as well as risks and uncertainty.     

Manufacturing of cylindrical gears by generating cutting processes: A critical synthesis of analysis methods

The eternal goal achieving optimum gear manufacturing results in a quick and flexible way can be obtained by efficient machine tools and thorough processes know how. Gear manufacturing is associated with complicated generating kinematics, chip formation and tool wear mechanisms. To capture quantitatively the tool wear progress and the cutting loads, empirical, analytical, numerical as well as FEM-based methods describing the chip geometry and predicting the tool life and cutting forces have been developed. The application of innovative tool materials and coatings, optimized tool geometries and appropriate conduct of reconditioning procedures contribute to the significant reducing of the manufacturing cost.     

Alzheimer’s Disease as Type 3 Diabetes: Common Pathophysiological Mechanisms between Alzheimer’s Disease and Type 2 Diabetes

Globally, the incidence of type 2 diabetes mellitus (T2DM) and Alzheimer’s disease (AD) epidemics is increasing rapidly and has huge financial and emotional costs. The purpose of the current review article is to discuss the shared pathophysiological connections between AD and T2DM. Research findings are presented to underline the vital role that insulin plays in the brain’s neurotransmitters, homeostasis of energy, as well as memory capacity. The findings of this review indicate the existence of a mechanistic interplay between AD pathogenesis with T2DM and, especially, disrupted insulin signaling. AD and T2DM are interlinked with insulin resistance, neuroinflammation, oxidative stress, advanced glycosylation end products (AGEs), mitochondrial dysfunction and metabolic syndrome. Beta-amyloid, tau protein and amylin can accumulate in T2DM and AD brains. Given that the T2DM patients are not routinely evaluated in terms of their cognitive status, they are rarely treated for cognitive impairment. Similarly, AD patients are not routinely evaluated for high levels of insulin or for T2DM. Studies suggesting AD as a metabolic disease caused by insulin resistance in the brain also offer strong support for the hypothesis that AD is a type 3 diabetes.     

Diffusion and oxidation phenomena at elevated temperatures in the contact area between hardened steel and various PVD coatings

Growing cost reduction trends in machining applications has led to a significant increase of cutting speeds and process temperatures. In this way, oxidation and diffusion mechanisms in the contact area between chip and tool become substantial, affecting the tool performance.In this paper, diffusion and oxidation interactions at 800 °C among various PVD coated cemented carbide inserts, hardened steel counterparts and low oxygen atmosphere will be introduced. The experiments were conducted under adjustable ambient conditions by a device, developed for this purpose. The coated specimens were fastened inside an electrical heating unit in a controlled gas atmosphere, allowing their contact with steel specimens at a desired pressure and temperature. During the experiments, periodic intervals of the applied pressure were followed by brief non-contact pauses, to avoid any permanent welding between coating and counterpart. For providing insight on the effect of diffusion and oxidation on the films' chemical composition and mechanical properties, coatings' cross sections in the film contact area were investigated by EDX-line scanning. The results show a considerable deterioration of the films' mechanical properties, which can be attributed more to coatings' oxidation and less to diffusion.     

Deformation and energy absorption properties of powder-metallurgy produced Al foams

Al-foams with relative densities ranging from 0.30 to 0.60 and mean pore sizes of 0.35, 0.70 and 1.35 mm were manufactured by a powder metallurgy technology, based on raw cane sugar as a space-holder material. Compressive tests were carried out to investigate the deformation and energy absorbing characteristics and mechanisms of the produced Al-foams. The deformation mode of low density Al-foams is dominated by the bending and buckling of cell walls and the formation of macroscopic deformation bands whereas that of high density Al-foams is predominantly attributed to plastic yielding. The energy absorbing capacity of Al-foams rises for increased relative density and compressive strength. The sintering temperature of Al-foams having similar relative densities has a marked influence on both, energy absorbing efficiency and capacity. Pore size has a marginal effect on energy efficiency aside from Al-foams with mean pore size of 0.35 which exhibit enhanced energy absorption as a result of increased friction during deformation at lower strain levels.     

Material interface effects on the topology optimizationof multi-phase structures using a level set method

A level set method is used as a framework to study the effects of including material interface properties in the optimization of multi-phase elastic and thermoelastic structures. In contrast to previous approaches, the material properties do not have a discontinuous change across the interface that is often represented by a sharp geometric boundary between material regions. Instead, finite material interfaces with monotonic and non-monotonic property variations over a physically motivated interface zone are investigated. Numerical results are provided for several 2D problems including compliance and displacement minimization of structures composed of two and three materials. The results highlight the design performance changes attributed to the presence of the continuously graded material interface properties.     

Structural Properties of Corn-Legume Based Extrudates as a Function of Processing Conditions and Raw Material Characteristics

The effect of extrusion conditions, including feed rate (2.52–6.84 kg/h), feed moisture content (13–19% wet basis), screw speed (150–250 rpm), and extrusion temperature (150–230°C) on structural properties of corn-legume based extrudates was studied. Four different types of legumes, chickpea, mexican bean, white bean, and lentil were used to form mixtures with corn flour in a ratio ranging from 10 to 90% (corn/legume). A simple power model was used to correlate porosity with extrusion conditions and material characteristics. The influence of feed rate in the extrudates porosity is incorporated into mean residence time. Porosity of extrudates was found to increase with temperature and residence time and to decrease with feed moisture content and corn to legume ratio. Screw speed did not affect extrudates properties. Expansion ratio showed a similar behavior with porosity. The addition of legumes (protein source) led to more dense products. Comparatively, the usage of white bean in mixtures for the production of snacks, led to a product with higher porosity than those with other legumes.     

Comparative study on the effects of groupware and conventional technologies on the efficiency of collaborative writing

In this paper the concept of efficiency in collaborative writing is considered in detail and a definition of efficiency is proposed. The definition of efficiency leads to the development of a research framework that delineates five operational measures of efficiency: (a) writing activities efficiency, (b) coordination efficiency, (c) quality of output, (d) absence of breakdowns, and (e) satisfaction with group performance. A comparative study is subsequently presented on the effects that groupware and conventional technologies have on the effciency of collaborative writing. The hypothesis is advanced that groupware can improve the efficiency of collaborative writing over conventional technologies. The results seem to support the hypothesis and indicate that (a) the groupware system examined in this study (MUCH system) offers efficiency benefits in terms of coordination, (b) MUCH users tend to face communication breakdowns while users of conventional technologies tend to face task-related breakdowns, (c) the documents produced with MUCH are of higher content quality, more coherent, and of higher rhetorical effectiveness than the documents produced with conventional technologies, and (d) the comparison of MUCH with conventional technologies shows no significant difference in terms of their effects on group performance satisfaction.     

Correlation of physicochemical and mechanical properties of historical mortars and classification by multivariate statistics

This work uses multivariate statistics in an attempt to classify historical mortars in more or less distinct groups, depending on their physicochemical characteristics. Four types of mortars are studied: “typical lime,” “cementitious,” “crushed brick” and Portland cement. Fifty samples in total were analysed by thermal analyses (differential thermal analysis [DTA] and thermogravimetric analysis [TGA]), mercury intrusion porosimetry and mechanical strength tests. The results give us useful information on the understanding of the technology of historical mortars and planning syntheses for restoration ones. The inverse hydraulicity ratio (CO₂/structurally bound water, SBW) is correlated to CO₂ content (%) as measured by thermal analysis. The tensile strength increases with the amount of hydrated phases and the mechanical properties of the aggregate and the binder. Medians, ranges and extremely rare values were determined for each property showing compact groups. These groups were discriminated by principal component analysis (PCA) giving a tool for characterisation of historical mortars.