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Engineering Economy Applying Theory to Practice

ISBN-10: 0195161521

ISBN-13: 9780195161526

Edition: 2nd 2003 (Revised)

Authors: Ted Eschenbach

List price: $99.00
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Thoroughly revised in this second edition,Engineering Economy: Applying Theory to Practice combines real-world problems minicases, and examples with a solid theoretical foundation in engineering economy. This innovative book covers all the standard topics included in the Fundamentals of Engineering (FE) Exam. It clearly illustrates concepts and methods-such as cost estimating, sensitivity analysis, probability, and multiple objectives-needed for successful application of engineering economy in industry practice. In addition, fully integrated ExcelRG spreadsheets throughout the text function as indispensable analytical tools for problem-solving and understanding. Engineering Economy: Applying Theory to Practice, 2/e, is a comprehensive introductory text suitable for upper-division undergraduate courses, graduate courses, or as a professional reference. NEW TO THE SECOND EDITION: BL Unique insight into using ExcelRG functions for MACRS depreciation BL New problems, examples, references, illustrations, graphs, and tables BL Minicase studies at the ends of most chapters BL Improved coverage of replacement analysis, inflation, and sensitivity analysis BL An appendix on engineering economy-based accounting BL More accessible presentation of analyzing the defender in replacement problems BL Discussion of geometric gradients unified with other engineering economy factors BL Comparison of mutually exclusive alternatives now precedes the treatment of constrained project selection/capital budgeting STUDENT CD-ROM-INCLUDED IN EVERY BOOK BL INTERACTIVE MULTIPLE-CHOICE PROBLEMS: A set of web-based problems that tests and reinforces knowledge of key concepts BL EXCELRG SPREADSHEET PROGRAM: Twenty-nine generators create quasi-random problem sets and solutions INSTRUCTOR SUPPLEMENTS BL A CD-ROM containing PowerPointRG overheads with accompanying Excel spreadsheets BL A SOLUTIONS MANUAL including answers to end-of-chapter problems and mini-cases, and transparency masters for all exhibits
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Book details

List price: $99.00
Edition: 2nd
Copyright year: 2003
Publisher: Oxford University Press, Incorporated
Publication date: 4/10/2003
Binding: Hardcover
Pages: 624
Size: 8.00" wide x 9.75" long x 0.25" tall
Weight: 2.552
Language: English

Donald G. Newnan is an Emeritus Professor at San Jose State University. Jerome P. Lavelle is Assistant Dean in the College of Engineering and Associate Professor of Industrial Engineering at North Carolina State University. Ted G. Eschenbach is a consultant and Professor Emeritus of Engineering Management at the University of Alaska Anchorage

Each chapter concludes with a Summary
Basic Concepts and Tools
Making Economic Decisions
What Is Engineering Economy?
Principles for Decision Making
The Decision-Making Process
The Environment for Decisions
The Role of Engineering Economy
Operational Economics
The Time Value of Money
What is Interest?
Simple vs. Compound Interest
Cash Flow Diagrams
Equivalence for 4 loans
Limits on Equivalence
Compounding Periods Shorter than a Year
Equivalence-A Factor Approach
Definitions and Assumptions
Tables of Engineering Economy Factors
Single-Payment Factors (P and F)
Uniform Flows
Combining Factors
Arithmetic Gradients
Geometric Gradients
Continuous Flow and Continuous Compounding
Spreadsheets and Economic Analysis
Using Spreadsheets for Economic Analysis
Spreadsheet Modeling
Financial Functions in Spreadsheets
Examples Show Spreadsheet Models Can Be More Realistic
Using Spreadsheets to Get a Project Funded
Analyzing a Project
Present Worth
The PW Measure
Examples of When to Use PW
Rolling Back Irregular Cash Flows for PW Calculations
Salvage Values
Capitalized Cost and Perpetual Life
Staged Projects
Cost of Underutilized Capacity
Spreadsheets and Shorter Periods
Spreadsheets and More Exact Models
Equivalent Annual Worth
The Equivalent Annual Worth Measure
Assumptions and Sign Conventions
Examples of Annual Evaluations
Finding the EAC of "Irregular" Cash Flows
EAC Formulas for Salvage Values and Working Capital
Perpetual Life
Repeated Renewals
Spreadsheets and Analyzing Loan Repayments
Internal Rate of Return
The Internal Rate of Return
Finding the IRR
Loans and Leases
Spreadsheets and the IRR
Multiple Sign Changes
Project Balances over Time
Modified Internal Rate of Return (MIRR)
Benefit/Cost Ratios and Other Measures
Measures of Economic Attractiveness
Benefit/Cost Ratio
Present Worth Indexes
Future Worth
Payback Period
Discounted Payback
Breakeven Volume
Comparing Alternatives and Projects
Mutually Exclusive Alternatives
Applying Engineering Economy to Engineering Design
Key Assumption Is the Interest Rate or Minimum Attractive Rate of Return
Comparing Alternatives with Lives of the Same Length
PWs and Explicitly Comparing Different-Length Lives
EAWs and EACs and Implicity Comparing Different-Length Lives
Using EAC for Different-Length Lives Is a Robust Approach
B/C and IRR Comparisons of Mutually Exclusive Alternatives Require Incremental Analysis
Defender/Challenger Analysis
PW, EAW, and IRR Have the Same Reinvestment Assumption
Using Spreadsheet GOAL SEEK Tool to Calculate Incremental IRRs
Replacement Analysis
Why Is Equipment Replaced, Retired, or Augmented?
Old and New Are Mutually Exclusive
Sunk Costs, Risks, and Cost Savings vs
Optimal Challengers
Optimal Defenders
Optimal Capacity Problems
Estimating Future Challengers
Replacement and Repair Models
Constrained Project Selection
The Constrained Project Selection Problem
Ranking Projects
Determining the Minimum Attractive Rate of Return Using the Opportunity Cost of Capital
A Theoretically Optimal Approach for Determining the Capital Budget
Capital Limits in the Real World
Matching Assumptions to the Real World
Present Worth Indexes and Benefit/Cost Ratios
Using the SORT Spreadsheet Tool
Mathematical Programming and Spreadsheets
Enhancements for the Real World
Basic Depreciation Methods
Accelerated Cost Recovery
Gains and Losses on Sales and Recaptured Depreciation
Optimal Depre