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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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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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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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Sum-of-Years-Digits Depreciation | |
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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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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 Borrow? | |
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Additional Tax Considerations | |
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Timing of Investment versus First Year's Depreciation Charge | |
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Summary | |
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Replacement Analysis | |
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Introduction | |
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Cash Flow Approach | |
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Opportunity Cost Approach | |
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Section 1031 Exchanges | |
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Optimum Replacement Interval | |
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Summary | |
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Inflation Effects | |
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Introduction | |
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Using Indexes to Measure Inflation | |
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Before-Tax Analysis in Inflationary Conditions | |
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After-Tax Analysis in Inflationary Conditions | |
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After-Tax Analysis with Inflation and Borrowed Capital | |
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Summary | |
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Supplementary Analysis | |
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Introduction | |
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Breakeven Analysis | |
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Sensitivity Analysis | |
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Risk Analysis | |
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Summary | |
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Decision Tree Analysis | |
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Economic Analysis In The Public And Regulated Sectors | |
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Introduction - The Nature of Public Projects | |
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Build-Operate-Transfer | |
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Objectives in Public Project Evaluation | |
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Guidelines in Public Sector Evaluation | |
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U.S. Federal Government Guidelines | |
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Using SEAT in Public Sector Evaluations | |
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Benefit-Cost and Cost-Effectiveness Calculations | |
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Important Considerations in Evaluating Public Projects | |
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Introduction - The Revenue Requirements Method | |
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Definition of Terms | |
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Determining the Minimum Revenue Requirement | |
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Showing Equivalence between Revenue Requirement and ATCF Methods | |
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Summary | |
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OMB Circular No. A-94, Revised Table of Contents | |
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Capital Budgeting | |
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Introduction | |
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The Classical Capital Budgeting Problem | |
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Unequal Investment Durations | |
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Capital Budgeting with Divisible Investments | |
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Using Excel to Solve the Capital Budgeting Problem with Divisible Investments | |
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Practical Considerations in Capital Budgeting | |
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Summary | |
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Obtaining And Estimating Cash Flows | |
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Introduction | |
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Cost Terminology | |
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Cost Estimation | |
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General Accounting Principles | |
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Cost Accounting Principles | |
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Summary | |
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Appendixes | |
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Discrete Compound Interest Tables | |
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Single-Sum, Uniform Series, and Gradient Series Interest Factors | |
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Geometric Series Present Worth Interest Factors | |
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Geometric Series Future Worth Interest Factors | |
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Continuous Compound Interest Tables | |
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Single-Sum, Uniform Series, and Gradient Series Interest Factors | |
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Continuous Flow Interest Factors | |
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Answers To Even-Numbered Problems | |