Lotus Spreadsheet Research Articles

Valuation Methodology: A Comparison of the Weighted-Average Cost of Capital and Equity-Residual Approaches

This technical note compares two methods of treating debt usage in discounted-cash-flow valuation of investment projects or companies. The note illustrates that the Weighted Average Cost of Capital approach (WACC) and the Equity Residual approach (ER) yield equivalent results if consistent assumptions are used. General features are illustrated with specific examples, including a LOTUS spreadsheet.

Cyberlab: A New Business Opportunity for Prico (a)

The president of a large and established manufacturer of laboratory equipment has to decide whether to invest a million dollars for 30% equity in a start-up company in the field of lab robotics. The agreement would also allow his company the right to market the product. He already has a Lotus spreadsheet that projects the best guess of the future scenario and calculates several measures of performance (ROS, ROE, ROI, NPV, and IRR). He must decide which of the criteria are most useful. A relevant-cost issue that is introduced must be resolved, because it makes a big difference in the NPV. In the supplement some background material is provided for a forecasting/judgmental assessment exercise based on this decision. The supplement could, assuming students have already been introduced to this topic, form the basis for a short workshop (an hour or less) on judgmental probability, or it could be used with a note on cumulative probability distributions for an introductory class on the topic. (The B case is QA-0383, and a supplement to the A case is QA-0384.)

Optimal Location of a Copper Smelter in Saudi Arabia for Polymetallic Deposits Using a Computerized Numerical Approach

The objective of this research work is to locate an optimal site for a copper smelter in Saudi Arabia to utilize the polymetallic ore deposits in the Arabian Shield. The research is concerned with investigating the potential ore deposits including their reserve sizes and ore grades. The study includes determining the deposits' locations with reference to industrial facilities, business centers, and shipping yards along with its location with reference to national highway network. The research includes a survey of seven applicable smelter sites that include two districts of the metalliferous ore deposits, four seaports, and the central region of the Kingdom. The survey includes determining the involved potential local ore deposits, possible imports of copper ore concentrates, and available industrial facilities. A computer program was constructed using Lotus spreadsheet to manipulate the relevant data to rank the candidate smelter sites. A macro function programming allows the reflection of any relevant information to update the ranking result. The analytical technique has ranked the candidate smelter sites. The seaport of Yanbu was ranked first to host the smelter plant. The district of Jabal Sayid in the Northern belt of mineral prospects ranked second amongst all candidate smelter sites.

Spreadsheets in copolymerization studies

A Lotus spreadsheet (LS) was utilized as part of a copolymerization study of methyl methacrylate (MMA) with N-phenylmaleimide (MP) and with some derivatives of MP, namely N-o-chlorophenylmaleimide (MOCP), N-p -tolylmaleimide (MPT), and N-o-tolylmaleimide (MOT). The use of LS provided a very rapid method to obtain values of copolymerization parameters which were in very good agreement with non-spreadsheet reported values. Further, a novel LS macro was developed which could be employed to ascertain the shape of the copolymer composition curve (copolymer composition as a function of monomer composition ). Monomer reactivity ratios, r 1 and r 2 , were determined as well as values of semi-empirical copolymerization parameters Q and e. An attempt was made to correlate the monomer structures used with the values of Q and e. An empirical decomposition temperature index (DTI) was also devised to measure the thermal stability of copolymers of MMA and MP as a function of MP content.

Assessing the relationship between the user-based market share and unit sales-based market share for pirated software brands in competitive markets

This article argues that in a competitive software market, in the presence of differential piracy and brand switching among the various brands within a software product category (e.g., spreadsheets), there may be no relationship between market estimates based on unit sales and the user base of a software brand (e.g., Lotus 1-2-3). Hence, marketing strategies developed for the software brand based on unit sales-based market share may be misleading. To support our argument and to quantify the relationship between unit sales-based market share and the user-based market share, we first extend a diffusion modeling approach for pirated software product categories to model the legal and illegal adoption dynamics of a software brand within a software product category. Second, to examine empirically the relationship between the user-based market share and the unit sales-based market share for a brand, we consider the diffusion of the major brands of two types of software product categories, spreadsheets and word processors, in the United Kingdom. Results indicate that in the product category of spreadsheets, for Lotus 1-2-3, the user-based market share was always less than the unit sales-based market share. On the other hand, in the product category of word processing software, the user-based market share for WordPerfect was always greater than the unit sales-based market share. Marketing implications of these results for Lotus spreadsheets, Novell WordPerfect, and the software industry are discussed.

Economic Feasibility of Grazing Sheep on Leafy Spurge-Infested Rangeland in Montana

Leafy spurge (Euphorbia esula L.) is a noxious weed on rangelands throughout the Northern Great Plains. Most of these ranges are grazed by cattle which do not use leafy spurge as forage. Although sheep graze leafy spurge, most land managers are reluctant to use sheep to control this noxious weed, which may be related to economic uncertainties regarding their profitability. The purpose of this study was to evaluate the economic feasibility of implementing a sheep enterprise to control leafy spurge on cattle ranches. The physical characteristics of a typical Northern Great Plains ranch, recommended stocking rates for cattle and sheep on native and leafy spurge-infested rangelands, and a sheep enterprise budget were developed using information from the literature. A LOTUS spreadsheet was developed to calculate returns over total costs of implementing various sheep enterprises. Annual returns from implementing sheep grazing on 520 ha of leafy spurge on a 4,905 ha ranch exceeded total costs by $4,675. Given the ownership costs and returns of our ranch, the breakeven lamb price would be $1.16 kg-1. Returns per head and per unit of land will vary with the distribution and size of a leafy spurge infestation, and sheep production costs and returns. Returns from sheep grazing were higher when leafy spurge was concentrated in fewer rather than in many pastures. Returns were positive when as little as 4% of the ranch was infested with leafy spurge. The availability and utility of our model will allow land managers to assess the feasibility of developing sheep enterprises to control leafy spurge.

Use of spreadsheets in the kinetic analysis of two consecutive first-order reactions

The present author developed an expression in a previous report that could be applied to the determination of the two rate constants, k 1 and k 2, for two consecutive irreversible first-order reactions (2CIFR). This expression was solved utilizing various computer methods and rate data (which could be obtained from conversion (α) versus time ( t) curves). Thus, BASICA (IBM), Lotus spreadsheets, and the Paradox data base were employed. The usual expressions developed for 2CIFR can be converted into dimensionless parameters and variables (DPV). One investigator (to be mentioned subsequently) developed a procedure whereby these DPV could be used to solve for k 1 and k 2 in 2CIFR. His method was rather tedious in that it involved plotting, superposing, and displacement measurements. In the present paper, a Lotus spreadsheet will be utilized to analyze 2CIFR for k-values. By means of this analysis, which utilizes dimensionless variables, these k-values will be obtainable in a matter of seconds once the experimental data is provided.

Spreadsheet Tools for Solving One-Equation Chemical Equilibrium Problems

163. Using Lotus spreadsheets to deal with the computational aspects of homogeneous and heterogeneous equilibrium problems.

Fracture Trace Analysis with a Geographic Information System "GIS"

Lineaments on side-looking airborne radar (SLAR) and LANDSAT satellite imagery were mapped over the western two-thirds of Rhode Island for a study of fracture trace analysis. A total of 360 large (>1.6 km) and 13,000 small (< 1.6 km) lineaments were identified on SLAR imagery; 260 large and 8,000 small lineaments were mapped from LANDSAT imagery. The western part of the state consists mainly of brittle granites and metamorphic rocks, which yield to stress by faulting and fracturing. Most of the area is covered with glacial deposits. The Geographic Information System (GIS) with computer programs was used for storing, processing, and displaying geographic information including the lineaments, their lengths and orientations. Since the imagery is frequently slightly distorted, the location and orientation of the lineaments are corrected by a comparison of recognizable points on the imagery and a base map. One of the great advantages of GIS is the ability to update and edit files without having to start anew. Another important feature of GIS is the ability to combine different maps into one. In this project a geographic, geologic, and lineament map were combined into one map. Data associated with the geographic coordinates, such as strike and length of lineaments, can be placed into an ASCII file from where it can be imported into a LOTUS spreadsheet for further calculation and display. The main purpose of the fracture trace analysis was to assist in the search for new landfill sites. Because of the demonstrated correlation between lineaments and high permeability bedrock zones, it is recommended to place candidate sites away from lineaments, particularly if they coincide with known faults or rock boundaries. Only lineaments larger than 1.6 km were used, since the map showing all lineaments looked chaotic and left little space for a candidate site. The lineaments were categorized by their correspondence with topographic features. They also received attributes expressed in correlations with geophysical anomalies, geologic boundaries, and with areas of a high density of small lineaments. The fracture trace analysis is an integral part of a geological package which includes bedrock geology and surficial maps. Besides geologic data, legal and environmental data as well as economic and social impacts were considered. In a stepwise exclusion process a final list of 11 candidate sites were selected, which were filtered out from 115 original candidate sites. A geologic interpretation of the lineaments is tenuous at this time, as they suggest that many faults have not been mapped. The lineament orientations suggest a system of faults and fractures that was caused by complicated stress conditions.

ISHAGE bone marrow processing survey: report on an international information gathering process. International Society for Hematotherapy Graft Engineering.

Significant amounts of information are currently available within the database generated by the responses to the Bone Marrow Processing Survey. As additional Surveys are returned, the data will continue to be entered into a Lotus spreadsheet, until a more sophisticated database with a programmed interface becomes available. The readership is encouraged to enter or edit the databank by returning a completed or amended Survey to the Society. Copies of the form are available from the Society or can be found in the first issue of the Journal of Hematotherapy.

Regional versus Industrial Shift-Share Analysis—With Help from the Lotus Spreadsheet

The predominant use of shift-share analysis has been to analyze regional changes in employment over a given time period. This article focuses on how shift-share should, rather than should not, be used. In particular, the focus is the analysis and economic interpretation of shift-share results at the industry level. We attempt to codify some of the more recent shift-share modifications and mesh them with the earlier suggestions of Dunn. There is a brief review of the popular conventional shift-share model, noting it does not provide meaningful industry-level results due to the assumption of proportionality. A shift-share model whose industry- and region-level interpretations are consistent is illustrated. The modified version also resolves, somewhat at least the structural weighting dilemma of the conventional model. Furthermore, we believe this model, in conjunction with the Barif-Knight dynamic approach, provides more robust shift-share results by enriching the economic interpretation of industry results. Finally, given our pedagogical thrust, we provide the shift-share formulae for the two models in a Lotus spreadsheet format.

A computerized system for measuring knowledge work

Defining and measuring the work performed by knowledge workers, a group traditionally considered unmeasurable, is an imperative if we are to reverse our current decline in labor productivity. Not only is a structured approach needed, but also a means of implementing this approach. A microcomputer-based system has been developed to meet this need.This information system includes a database and a spreadsheet. The database defines the work and provides input for the spreadsheet. The LOTUS spreadsheet accepts the measurement results and the calculated “target” completion time for the work, and then graphically compares this time and the actual time.This paper describes the methodology and the information system.

Stochastic decision tree analysis on an electronic spreadsheet

This paper discusses an application of Lotus spreadsheet to a problem in stochastic decision tree analysis. This type of analysis combines the ideas from decision tree approach and risk analysis. We use a risk analysis package (ŗRISK) with Lotus 1-2-3 and perform the stochastic decision tree analysis on a classical problem due to Magee [1]. Results obtained indicate that the stochastic decision tree approach provides a more useful aid to decision makers than the traditional “best-estimate” approach.

Book Review

Abstract Evaluating the Acquisition and Operation of Information Systems: GAO IMTEC Technical Guideline 2, No Author. Washington DC: US General Accounting Office, 1986, 51 pp, Free. Preparing, Documenting, and Referencing Lotus Spreadsheets: GAO IMTEC Technical Guideline 3, by Richard Donalds, Harriet Gannon, Amy Tidus, Barbara House, Steve Tummel, and Stewart Seman. Washington DC: US General Accounting Office, 1987, 52 pp, Free.

Software Reviews : Wisard Forecaster

If you have the skills necessary for sophisticated statistical techniques in nonlinear forecasting, this will prove an exciting and easy-to-master utility for your LOTUS or SYMPHONY spreadsheets. WISARD combines several powerful forecasting formulas to produce trend lines that adjust for seasonality. A drawback is that you are not privy to exactly how the various forecasts are made (something the manual calls the "Confidence Factor"). A simple menu-driven, design/installation program combined with an affordable price make it attractive to the planner.

Book Reviews : dBASEIII Plus Power Tools

This is an outstanding resource book for the social scientist who has mastered the fundamentals of dBASEIII programming and who wants to know where to go next. The work is full of valuable explanations and examples. For instance, one section shows how to capture into dBASE files downloaded data from a financial or other online data service. How to do form letters, including interfacing with WORDSTAR or WORDPERFECT, is covered. Other topics: how to do bar charts in dBASE , how to make pop-up menus, dialing phone numbers from within dBASE programs, regression analysis, data exchange with LOTUS and other spreadsheets, working with SUPERKEY and other memory-resident programs, using compilers, and financial calculations. This book takes up where good introductory texts (e.g., Chou, dBASEIII Plus Handbook) leave off and is highly recommended as a more advanced reference resource.

Software Reviews : Goal Solutions Publisher: Enfin Software Corp., 6920 Miramar Road, #106a, San Diego, CA 92121 (telephone: 800-922-4372) Year of Publication: 1987 Materials: Program disk, 68-page manual in vinyl cover Price: $79.95 Availability: IBM and 100% compatibles System Requirements: IBM PC, xT, AT, or 100% compatible; DOS 2.0 or higher; at least 52K more than LOTUS 1-2-3 and spreadsheet;

GOAL SOLUTIONS is an add-in program for LOTUS spreadsheets. Its purpose is to simplify the solution of what-if problems, that is, to ascertain cell values related to other values that are not fully known. Essentially, it shortcuts a trial-and-error process.

LOTUS Spreadsheet Design for Storm Drain Networks

The ability to accurately route flows through storm drain networks relies not only on the skill of the engineer, but also on the resources at his disposal. The purpose of this paper is to stress the advantage of using a shell system, in this case LOTUS 123, to perform storm drain designs. Pipe segments are conceptualized as storage elements, distributed or concentrated. The proposed analytical method uses analytical, algebraic relationships derived from linear diffusive wave theory and provides reasonably accurate designs at a very modest computational effort. This procedure is applicable to desktop calculations, but the utilization of the LOTUS environment provides the greater ease and efficiency necessary for routine use.

A Mathematical Model for the Fate of Hazardous Substances in Soil: Model Description and Experimental Results

A mathematical model (VIP) was developed and implemented for evaluating the fate of a hazardous substance in the unsaturated zone of the soil. The model simulates vadose zone processes including volatilization, degradation, adsorption/desorption, advection, and dispersion. Four physical phases in the vadose zone are considered including water, oil, soil grains, and soil-pore air (unsaturated pore space). The Vadose Zone Interactive Processes (VIP) model is appropriate for sites under RCRA and CERCLA (Superfund) categorization since site-specific soil-waste processes affecting transport of hazardous chemicals through the vadose zone are incorporated in the model. A RCRA land treatment system was chosen as the basis of the model development. The model is implemented on IBM-PC, -XT, and -AT compatible equipment and has an interface to accept input files from LOTUS spreadsheets. Laboratory experiments were conducted to observe the transport and apparent degradation of three polynuclear aromatic hydrocarbon (PAH) compounds (anthracene, fluoranthene, and naphthalene) in sandy loam soil in separate soil columns under two flow conditions. Vadose zone concentrations of the PAH compounds were evaluated as function of time (90 days) and depth (1.5 m). Results of the experiments were compared with the model predictions. The VIP model closely simulated the fate and behavior of the three compounds through depth and through time in the vadose zone conditions in the soil columns. It was possible to use literature values for partition coefficients, apparent degradation rates, and interpore water velocity in the model for all three compounds.

IOTA3: the integration of Lotus spreadsheets and APL

A software system named IOTA3 is described which represents an integration of the popular Lotus Corporation spreadsheets (1-2-3 and Symphony) and the language APL. IOTA3 allows the spreadsheet user to extend the worksheet environment to include many of the features of the APL environment. Conversely, it allows the APL user to think of the spreadsheet as an extension of the workspace. The paper describes the various levels at which integration may be achieved, the costs and benefits of doing so, and the problems that were encountered and/or solved along the way. The system is based on the IBM Personal Computer and has been written for a number of APL implementations.