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