ECONOMIC VALUE ADDED BY MANUFACTURING FIRMS

Sullivan, William G.

Flexible Automation and Intelligent Manufacturing, 1997:
Proceedings of the Seventh International FAIM Conference

ISBN Imprimir: 978-1-56700-089-4

ISBN On-line: 978-1-56700-442-7

ECONOMIC VALUE ADDED BY MANUFACTURING FIRMS

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William G. Sullivan Industrial and Systems Engineering Department Virginia Polytechnic Institute and State University, USA

Resumo

Approximately two-thirds of the wealth created by a modern industrialized nation is from its manufacturing sector. This paper discusses a measure for estimating the wealth creation potential of capital investments in manufacturing. The measure, called "Economic Value Added," has recently become popular in the United States and is based on an after-tax analysis of cash flows generated by a capital investment.

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