This student-friendly text on the current economic issues particular to engineering covers the topics needed
to analyze engineering alternatives. Students use both hand-worked and spreadsheet solutions of examples, problems
and case studies. In this edition the options have been increased, with an expanded spreadsheet analysis component,
twice the number of case studies, and virtually all new end-of-chapter problems. The chapters on factor derivation
and usage, cost estimation, replacement studies, and after-tax evaluation have been heavily revised. New material
is included on public sector projects and cost estimation. A reordering of chapters puts the fundamental topics
up front in the text. Many chapters include a special set of problems that prepare the students for the Fundamentals
of Engineering (FE) exam.
This college-level text provides students and practicing professionals with a solid preparation in the financial
understanding of engineering problems and projects, as well as the techniques needed for evaluating and making
sound economic decisions. Distinguishing characteristics include learning objectives for each chapter, an easy-to-read
writing style, many solved examples, integrated spreadsheets, and case studies throughout the text. Graphical cross-referencing
between topics and quick-solve spreadsheet solutions are indicated in the margins throughout the text. While the
chapters are progressive, over three-quarters can stand alone, allowing instructors flexibility for meeting course
needs.
Table of Contents
Level 1 This is How It All Starts
Chapter 1. Foundations of Engineering Economy
Chapter 2. Factors. How Time and Interest Affect Money
Chapter 3. Combining Factors
Chapter 4. Nominal and Effective Interest Rates
Level 2 Tools for Evaluating Alternatives
Chapter 5. Present Worth Analysis
Chapter 6. Annual Worth Analysis
Chapter 7. Rate of Return Analysis. Single Alternative
Chapter 8. Rate of Return Analysis. Multiple Alternatives
Chapter 9. Benefit/Cost Analysis and Public Sector Economics
Chapter 10. Making Choices. The Method, MARR, and Multiple Attributes
Level 3 Making Decisions on Real-World Projects
Chapter 11. Replacement and Retention Decisions
Chapter 12. Selection from Independent Projects Under Budget Limitation
Chapter 13. Breakeven Analysis
Level 4 Rounding Out the Study
Chapter 14. Effects of Inflation
Chapter 15. Cost Estimation and Indirect Cost Allocation
Chapter 16. Depreciation Methods
Chapter 17. After-Tax Economic Analysis
Chapter 18. Formalized Sensitivity Analysis and Expected Value Decisions
Chapter 19. More on Variation and Decision Making Under Risk
Appendix A Using Spreadsheets and Microsoft Excel
Appendix B Basics of Accounting Reports and Business Ratios
Bibliography
Compound Interest Factor Tables
Index
