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