Fundamentals of Engineering Economics

Cover
Title Page
Copyright Page
Acknowledgments
Contents
Preface
PART 1 UNDERSTANDING MONEY AND ITS MANAGEMENT
	Chapter 1 Engineering Economic Decisions
		1.1 The Rational Decision-Making Process
		1.2 The Engineer’s Role in Business
		1.3 Types of Strategic Engineering Economic Decisions
		1.4 Fundamental Principles in Engineering Economics
		Summary
		Self-Test Questions
		Problems
	Chapter 2 Time Value of Money
		2.1 Interest: The Cost of Money
		2.2 Economic Equivalence
		2.3 Interest Formulas for Single Cash Flows
		2.4 Uneven-Payment Series
		2.5 Equal-Payment Series
		2.6 Dealing with Gradient Series
		2.7 More on Equivalence Calculations
		Summary
		Self-Test Questions
		Problems
	Chapter 3 Understanding Money Management
		3.1 Market Interest Rates
		3.2 Calculating Effective Interest Rates Based on Payment Periods
		3.3 Equivalence Calculations with Effective Interest Rates
		3.4 Debt Management
		Summary
		Self-Test Questions
		Problems
	Chapter 4 Equivalence Calculations under Inflation
		4.1 Measure of Inflation
		4.2 Actual versus Constant Dollars
		4.3 Equivalence Calculations under Inflation
		Summary
		Self-Test Questions
		Problems
PART 2 EVALUATING BUSINESS AND ENGINEERING ASSETS
	Chapter 5 Present-Worth Analysis
		5.1 Loan versus Project Cash Flows
		5.2 Initial Project Screening Methods
		5.3 Present-Worth Analysis
		5.4 Methods to Compare Mutually Exclusive Alternatives
		Summary
		Self-Test Questions
		Problems
	Chapter 6 Annual-Equivalence Analysis
		6.1 Annual-Equivalent Worth Criterion
		6.2 Applying Annual-Worth Analysis
		6.3 Comparing Mutually Exclusive Projects
		Summary
		Self-Test Questions
		Problems
	Chapter 7 Rate-of-Return Analysis
		7.1 Rate of Return
		7.2 Methods for Finding Rate of Return
		7.3 Internal-Rate-of-Return Criterion
		7.4 Incremental Analysis for Comparing Mutually Exclusive Alternatives
		Summary
		Self-Test Questions
		Problems
	Chapter 7A: Resolution of Multiple Rates of Return
		7A-1 Net-Investment Test
		7A-2 The Need for an External Interest Rate
		7A-3 Calculation of Return on Invested Capital for Mixed Investments
	Chapter 8 Benefit–Cost Analysis
		8.1 Evaluation of Public Projects
		8.2 Benefit–Cost Analysis
		8.3 Profitability Index
		8.4 Highway Benefit–Cost Analysis
		Summary
		Self-Test Questions
		Problems
PART 3 DEVELOPMENT OF PROJECT CASH FLOWS
	Chapter 9 Accounting for Depreciation and Income Taxes
		9.1 Accounting Depreciation
		9.2 Book Depreciation Methods
		9.3 Tax Depreciation Methods
		9.4 Corporate Taxes
		Summary
		Self-Test Questions
		Problems
	Chapter 10 Project Cash-Flow Analysis
		10.1 Understanding Project Cost Elements
		10.2 Why Do We Need to Use Cash Flows in Economic Analysis?
		10.3 Income-Tax Rate to Be Used in Project Evaluation
		10.4 Incremental Cash Flows from Undertaking a Project
		10.5 Developing Project Cash Flow Statements
		10.6 Effects of Inflation on Project Cash Flows
		Summary
		Self-Test Questions
		Problems
	Chapter 11 Handling Project Uncertainty
		11.1 Origins of Project Risk
		11.2 Methods of Describing Project Risk
		11.3 Probabilistic Cash Flow Analysis
		11.4 Considering the Project Risk by Discount Rate
		Summary
		Self-Test Questions
		Problems
PART 4 SPECIAL TOPICS IN ENGINEERING ECONOMICS
	Chapter 12 Replacement Decisions
		12.1 Replacement-Analysis Fundamentals
		12.2 Economic Service Life
		12.3 Replacement Analysis When the Required Service Period Is Long
		12.4 Replacement Analysis with Tax Considerations
		Summary
		Self-Test Questions
		Problems
	Chapter 13 Understanding Financial Statements
		13.1 Accounting: The Basis of Decision Making
		13.2 Financial Status for Businesses
		13.3 Using Ratios to Make Business Decisions
		13.4 Principle of Investing in Financial Assets
		Summary
		Self-Test Questions
		Problems
Appendix A: Answers to the Self-Test Questions
Appendix B: Interest Factors for Discrete Compounding
Appendix C: How to Read the Cumulative Standardized Normal Distribution Function
Index
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