Fundamentals of Engineering Economics

Description

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 A B C D E F G H I K L M N O P Q R S T U V W Y Z