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The use of modelling in an economic appraisal of a new technology
Author(s) -
Simnett Jonathan,
Georghiou Luke
Publication year - 1983
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1983.tb01133.x
Subject(s) - economic appraisal , phase (matter) , project management , project appraisal , computer science , critical appraisal , technology development , risk analysis (engineering) , process management , management science , business , systems engineering , engineering , economics , finance , manufacturing engineering , medicine , chemistry , alternative medicine , organic chemistry , pathology , classical economics
This paper deals with the problem of identifying the major economic sensitivities of an unusual mineral extraction project when the project is based on a radically new technology which is still at the research and development phase. On the timescale for development of the technology major external uncertainties such as the future level of metal prices are critical, as well as internal uncertainties such as cost and time. The possible outcomes are explored using CASPAR, a computer‐based network program with integral financial analysis features which allow use from pre‐feasibility phases right through to eventual project management.