Principles of Engineering Economic Analysis, 5th Edition

by ; ;
Edition: 5th
Format: Hardcover
Pub. Date: 2009-01-01
Publisher(s): Wiley
List Price: $220.10

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Summary

This concise book provides engineers with the tools to evaluate the cost of their work and convey the project to key decision makers. It follows an integrative approach that arms them with a seven-step Systematic Evaluation and Analysis Technique as well as a strong understanding of cash flows. The new fifth edition has also been expanded from eight to 16 chapters, covering critical topics such as time value of money, measures of worth, depreciation, inflation, and capital rationing. Practicing engineers will be able to apply these principles and techniques to make the most effective economic decisions.

Table of Contents

Preface
Engineering Economic Analysis
Introduction
Time Value of Money
Ten Principles of Engineering Economic Analysis
Systematic Economic Analysis Technique (SEAT)
When the Time Value of Money Need Not Be Considered
Summary
Time Value Of Money
Introduction
Cash Flow Diagrams
Simple Interest Calculations
Compound Interest Calculations
Multiple Compounding Periods in a Year
When Compounding and Cash Flow Frequencies Differ
Special and Limiting Cases of Time Value of Money Factors
Summary
Appendix
A Continuous Compound Interest Calculations (brief treatment)
Discrete Cash Flows
Continuous Cash Flows
Borrowing, Lending, And Investing
Introduction
Four Methods of Repaying Loans
Which Repayment Method Is Best for the Borrower?
Real Estate Investment
Interest Payments and Principal Payments
Retirement Planning
Equivalence and Indifference
Purchasing and Selling Bonds
Variable Interest Rates
Summary
Establishing The Planning Horizon And The Minimum Attractive Rate Of Return
Introduction
Choosing the Planning Horizon
Specifying the Minimum Attractive Rate of Return
Summary
Present Worth Analysis
Introduction
Comparing Alternatives
Present Worth: Single Alternative
Present Worth: Multiple Alternatives
Present Worth: "One Shot" Investments
Discounted Payback Period: Single Alternative
Discounted Payback Period: Multiple Alternatives
Capitalized Worth: Single Alternative
Capitalized Worth: Multiple Alternatives
Summary
Future Worth Analysis
Introduction
Future Worth: Single Alternative
Future Worth: Multiple Alternatives
Maximizing the Investment Portfolio
More on Unequal Lives
Summary
Annual Worth Analysis
Introduction
Annual Worth: Equal Lives
Annual Worth: Multiple Alternatives
Least Common Multiple of Lives Assumption
Unequal Lives Re-Visited
Capital Recovery Cost
Summary
Rate Of Return Analysis
Introduction
Internal Rate of Return: Single Alternative
Internal Rate of Return: Multiple Alternatives
External Rate of Return: Single Alternative
External Rate of Return: Multiple Alternatives
Analyzing Alternatives with No Positive Cash Flows
Summary
Appendix
A Modified Internal Rate of Return
Single Alternative
Multiple Alternatives
Depreciation Methods
Introduction
Background on Depreciation Accounting
Straight Line Depreciation (SLN)
Declining Balance and Double Declining Balance Depreciation (DB and DDB)
Switching from DDB to SLN with VDB
Modified Accelerated Cost Recovery System (MACRS)
Comparison of Depreciation Methods
Summary
Appendix
A Sum-of-Years-Digits Depreciation
Appendix
B Other Depreciation Methods
Unit of Production Method
Operating Day (Hour) Method
Income Forecast Method
Appendix
C Depletion
After-Tax Economic Analysis
Introduction
Tax Concepts
Corporate Income Taxes
After-Tax Cash Flow without Borrowing
After-Tax Comparison of Alternatives
After-Tax Cash Flows with Borrowing
How Much Money Should a Company Borro
Table of Contents provided by Publisher. All Rights Reserved.

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