Table of Content

1. Introduction to Engineering Economy
2. Cost Concepts and Design Economics
3. Cost-Estimation Techniques
4. The Time Value of Money
5. Evaluating a Single Project
6. Comparison and Selection among Alternatives
7. Depreciation and Income Taxes
8. Price Changes and Exchange Rates
9. Replacement Analysis
10. Evaluating Projects with the Benefit-Cost Ratio Method
11. Breakeven and Sensitivity Analysis
12. Probabilistic Risk Analysis
13. The Capital Budgeting Process
14. Decision Making Considering Multiattributes

Salient Features

• Case studies with end-of-chapter questions encourage writing and critical thinking.
• Fundamentals of Engineering Exam multiple-choice questions appear at the end of each chapter.
• Spreadsheets are integrated throughout the text. In particular, many examples include handworked and computer solutions (with spreadsheets) so that students can see both techniques side by side
• Cost estimating is further emphasized in the text.
• An expanded treatment of the economic aspects of engineering design is featured.
• Economic value is explained in terms of a project's after-tax cash flows. This provides students with information regarding a new approach to measuring profitability.
• Material on the cost of capital explains the cost of equity and debt capital as well as the weighted average cost of capital and its relationship to rate of return concepts.
• Real-world engineering economy analysis methodology helps students develop proficiency with methodology and processes for making rational decisions in situations likely to be encountered in professional practice.
• The theoretical and practical aspects of selecting among capital investments are examined, teaching students to select the most profitable projects to benefit a company's bottom line.
• A multitude of examples help students to more readily understand concepts and reinforce learning.