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| This is How It All Starts | |
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| Foundations of Engineering Economy | |
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| Why Engineering Economy is Important to Engineers (and other professionals) | |
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| Role of Engineering Economy in Decision Making | |
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| Performing an Engineering Economy Study | |
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| Interest Rate and Rate of Return | |
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| Equivalence | |
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| Simple and Compound Interest | |
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| Terminology and Symbols | |
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| Introduction to Solution by Computer | |
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| Minimum Attractive Rate of Return | |
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| Cash Flows: Their Estimation and Diagramming | |
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| Rule of 72: Estimating Doubling Time and Interest Rate | |
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| Spreadsheet Application – Simple and Compound Interest, and Changing Cash Flow Estimates Additional Examples Problems, FE Review Problems | |
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| Extended Exercise –Effects of Compound Interest | |
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| Case Study –Describing Alternatives for Producing Refrigerator Shells | |
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| Factors: How Time and Interest Affect Money | |
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| Single-Payment Factors (F/P and P/F) | |
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| Uniform-Series Present-Worth Factor and Capital-Recovery Factor (P/A and A/P) | |
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| Sinking-Fund Factor and Uniform-Series Compound-Amount Factor (A/F and F/A) | |
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| Interpolation in Interest Tables | |
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| Arithmetic Gradient Factors (P/G and A/G) | |
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| Geometric Gradient Series Factors | |
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| Determination of an Unknown Interest Rate | |
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| Determination of Unknown Number of Years | |
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| Spreadsheet Application- Basic Sensitivity Analysis Additional Example Problems, FE Review Problems | |
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| Case Study –What a Difference the Years and Compound Interest Can Make | |
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| Combining Factors | |
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| Calculations for Uniform Series that are Shifted | |
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| Calculations Involving Uniform-Series and Random-Placed Single Amounts | |
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| Calculations for Shifted Gradients | |
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| Shifted Decreasing Arithmetic Gradients | |
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| Spreadsheet Application –Using Different Functions Additional Example Problems, FE Review Problems | |
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| Extended Exercise –Preserving Land for Public Use | |
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| Nominal and Effective Interest Rates | |
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| Nominal and Effective Interest Rate Statements | |
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| Effective Annual Interest Rates | |
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| Effective Interest Rates for Any Time Period | |
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| Equivalence Relations: Comparing Payment Period and Compounding Period Lengths (PP vs. CP) | |
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| Equivalence Relations: Single Amounts with PP >= CP | |
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| Equivalence Relations: Series with PP >= CP | |
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| Equivalence Relations: Single Amounts and Series with PP < CP | |
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| Effective Interest Rate for Continuous Compounding | |
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| Interest Rates that Vary Over Time Problems, FE Review Problems | |
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| Case Study –Financing a House | |
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| Tools for Evaluating Alternatives | |
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| Present Worth Analysis | |
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| Formulating Mutually Exclusive Alternatives | |
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| Present Worth Analysis of Equal-Life Alternatives | |
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| Present Worth Analysis of Different-Life Alternatives | |
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| Future Worth Analysis | |
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| Capitalized Cost Calculation and Analysis | |
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| Payback Period Analysis | |
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| Life-Cycle Cost | |
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| Present Worth of Bonds | |
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| Spreadsheet Applications-PW Analysis and Payback Period Problems, FE Review Problems | |
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| Extended Exercise –Evaluation of Social Security Retirement Estimates | |
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| Case Study –Payback Evaluation of Ultralow-Flush Toilet Program | |
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| Annual Worth Analysis | |
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| Advantages and Uses of Annual Worth Analysis | |
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| Calculations of Capital Recovery and AW Values | |
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| Evaluating Alternatives by Annual Worth Analysis | |
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| AW of a Permanent Investment Problems, FE Review Problems | |
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| Case Study –The Changing Scene of an Annual Worth Analysis | |
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| Rate of Return Analysis: Single Alternative | |
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| Interpretation of a Rate of Return Value | |
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| Rate of Return Calculation Using a PW or AW Equation | |
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| Cautions When Using the ROR Method | |
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| Multiple Rate of Return Values | |
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| Composite Rate of Return: Removing Multiple i* Values | |
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| Rate of Return of a Bond Investment Problems, FE Review Problems | |
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| Extended Exercise 1 –The Cost of a Poor Credit Rating | |
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| Extended Exercise 2 –When Is It Best to Sell a Business? | |
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| Case Study –Bob Learns About Multiple Rates of Return | |
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| Rate of Return Analysis: Multiple Alternatives | |
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| Why Incremental Analysis Is Necessary | |
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| Calculation of Incremental Cash Flows for ROR Analysis | |
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| Interpretation of Rate of Return on the Extra Investment | |
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| Rate of Return Evaluation Using PW: Incremental and Breakeven | |
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| Rate of Return Evaluation Using AW | |
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| Incremental ROR Analysis of Multiple Mutually Exclusive Alternatives | |
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| Spreadsheet Application – PW, AW, and ROR Analysis All in One Problems, FE Review Problems | |
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| Extended Exercise –Incremental ROR Analysis When Estimated Alternative Lives Are Uncertain | |
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| Case Study – So Many Options. Can a New Engineering Graduate Help Her Father? | |
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| Case Study – PW Analysis When Multiple Interest Rates Are Present | |
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| Benefit/Cost Analysis and Public Sector Economics | |
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| Public Sector Projects | |
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| Benefit/Cost Analysis of a Single Project | |
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| Alternative Selection Using Incremental B/C Analysis | |
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| Incremental B/C Analysis of Multiple, Mutually Exclusive Alternatives Problems, FE Review Problems | |
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| Extended Exercise – Costs to Provide Ladder Truck Service for Fire Protection | |
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| Case Study – Freeway Lighting | |
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| Making Choices: the Method, MARR, and Multiple Attributes | |
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| Comparing Mutually Exclusive Alternatives by Different Evaluation Methods | |
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| MARR Relative to the Cost of Capital | |
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| Debt-Equity Mix and Weighted Average Cost of Capital | |
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| Determination of the Cost of Debt Capital | |
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| Determination of the Cost of Equity Capital and the MARR | |
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| Effect of Debt-Equity Mix on Investment Risk | |
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| Multiple Attribute Analysis: Identification and Importance of Each Attribute | |
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| Evaluation Measure for Multiple Attributes Problems | |
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| Extended Exercise – Emphasizing the Right Things | |
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| Case Study – Which Way to Go - Debt or Equity Financing? | |
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| Making Decisions on Real-World Projects | |
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| Replacement and Retentions Decisions | |
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| Basics of the Replacement Study | |
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| Economic Service Life | |
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| Performing a Replacement Study | |
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| Additional Considerations in a Replacement Study | |
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| Replacement Study Over a Specific Study Period Problems | |
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| Extended Exercise – Economic Service Life Under Varying Conditions | |
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| Case Study – Replacement Analysis for Quarry Equipment | |
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| Selection from Independent Projects Under Budget Limitation | |
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| An Overview of Capital Rationing Among Projects | |
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| Capital Rationing Using PW Analysis of Equal-Life Projects | |
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| Capital Rationing Using PW Analysis of Unequal-Life Projects | |
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| Capital Budgeting Problem Formulation Using Linear Programming Problems | |
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| Case Study – Lifelong Engineering Education in a Web Environment | |
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| Breakeven Analysis | |
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| Breakeven Analysis for a Single Project | |
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| Breakeven Analysis Between Two Alternatives | |
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| Spreadsheet Application – Using Excel’s Solver for Breakeven Analysis Problems | |
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| Case Study – Water Treatment Process Costs | |
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| Rounding Out the Study | |
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| Effects of Inflation | |
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| Understanding the Impact of Inflation | |
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| Present Worth Calculations Adjusted for Inflation | |
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| Future Worth Calculations Adjusted for Inflation | |
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| Capital Recovery Calculations Adjusted for Inflation Problems, FE Review Problems<I | |