Principles of Engineering Economic Analysis

Name: Principles of Engineering Economic Analysis
Availability: InStock
ISBN: 9781118163832

ISBN-10: 1118163834

ISBN-13: 9781118163832

Edition: 6th 2012 (Student Manual, Study Guide, etc.)

Authors: John A. White, Kenneth E. Case, David B. Pratt

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Description:

This concise book provides engineers with the tools to evaluate the cost of their work and convey the project to key decision makers. It follows an integrative approach that arms them with a seven-step Systematic Evaluation and Analysis Technique as well as a strong understanding of cash flows. The new fifth edition has also been expanded from eight to 16 chapters, covering critical topics such as time value of money, measures of worth, depreciation, inflation, and capital rationing. Practicing engineers will be able to apply these principles and techniques to make the most effective economic decisions.

Book details

List price: $208.95
Edition: 6th
Copyright year: 2012
Publisher: John Wiley & Sons, Incorporated
Publication date: 3/19/2012
Binding: Hardcover
Pages: 928
Size: 8.30" wide x 10.10" long x 1.50" tall
Weight: 4.224
Language: English




Engineering Economic Analysis



Introduction



Time Value of Money



Ten Principles of Engineering Economic Analysis



Systematic Economic Analysis Technique (SEAT)



When the Time Value of Money Need Not Be Considered



Summary



Time Value Of Money



Introduction



Cash Flow Diagrams



Simple Interest Calculations



Compound Interest Calculations



Multiple Compounding Periods in a Year



When Compounding and Cash Flow Frequencies Differ



Special and Limiting Cases of Time Value of Money Factors



Summary



A Continuous Compound Interest Calculations (brief treatment)



Discrete Cash Flows



Continuous Cash Flows



Borrowing, Lending, And Investing



Introduction



Four Methods of Repaying Loans



Which Repayment Method Is Best for the Borrower?



Real Estate Investment



Interest Payments and Principal Payments



Retirement Planning



Equivalence and Indifference



Purchasing and Selling Bonds



Variable Interest Rates



Summary



Establishing The Planning Horizon And The Minimum Attractive Rate Of Return



Introduction



Choosing the Planning Horizon



Specifying the Minimum Attractive Rate of Return



Summary



Present Worth Analysis



Introduction



Comparing Alternatives



Present Worth: Single Alternative



Present Worth: Multiple Alternatives



Present Worth: "One Shot" Investments



Discounted Payback Period: Single Alternative



Discounted Payback Period: Multiple Alternatives



Capitalized Worth: Single Alternative



Capitalized Worth: Multiple Alternatives



Summary



Future Worth Analysis



Introduction



Future Worth: Single Alternative



Future Worth: Multiple Alternatives



Maximizing the Investment Portfolio



More on Unequal Lives



Summary



Annual Worth Analysis



Introduction



Annual Worth: Equal Lives



Annual Worth: Multiple Alternatives



Least Common Multiple of Lives Assumption



Unequal Lives Re-Visited



Capital Recovery Cost



Summary



Rate Of Return Analysis



Introduction



Internal Rate of Return: Single Alternative



Internal Rate of Return: Multiple Alternatives



External Rate of Return: Single Alternative



External Rate of Return: Multiple Alternatives



Analyzing Alternatives with No Positive Cash Flows



Summary



Modified Internal Rate of Return



Single Alternative



Multiple Alternatives



Depreciation Methods



Introduction



Background on Depreciation Accounting



Straight Line Depreciation (SLN)



Declining Balance and Double Declining Balance Depreciation (DB and DDB)



Switching from DDB to SLN with VDB



Modified Accelerated Cost Recovery System (MACRS)



Comparison of Depreciation Methods



Summary



Sum-of-Years-Digits Depreciation



Other Depreciation Methods



Unit of Production Method



Operating Day (Hour) Method



Income Forecast Method



Depletion



After-Tax Economic Analysis



Introduction



Tax Concepts



Corporate Income Taxes



After-Tax Cash Flow without Borrowing



After-Tax Comparison of Alternatives



After-Tax Cash Flows with Borrowing



How Much Money Should a Company Borrow?



Additional Tax Considerations



Timing of Investment versus First Year's Depreciation Charge



Summary



Replacement Analysis



Introduction



Cash Flow Approach



Opportunity Cost Approach



Section 1031 Exchanges



Optimum Replacement Interval



Summary



Inflation Effects



Introduction



Using Indexes to Measure Inflation



Before-Tax Analysis in Inflationary Conditions



After-Tax Analysis in Inflationary Conditions



After-Tax Analysis with Inflation and Borrowed Capital



Summary



Supplementary Analysis



Introduction



Breakeven Analysis



Sensitivity Analysis



Risk Analysis



Summary



Decision Tree Analysis



Economic Analysis In The Public And Regulated Sectors



Introduction - The Nature of Public Projects



Build-Operate-Transfer



Objectives in Public Project Evaluation



Guidelines in Public Sector Evaluation



U.S. Federal Government Guidelines



Using SEAT in Public Sector Evaluations



Benefit-Cost and Cost-Effectiveness Calculations



Important Considerations in Evaluating Public Projects



Introduction - The Revenue Requirements Method



Definition of Terms



Determining the Minimum Revenue Requirement



Showing Equivalence between Revenue Requirement and ATCF Methods



Summary



OMB Circular No. A-94, Revised Table of Contents



Capital Budgeting



Introduction



The Classical Capital Budgeting Problem



Unequal Investment Durations



Capital Budgeting with Divisible Investments



Using Excel to Solve the Capital Budgeting Problem with Divisible Investments



Practical Considerations in Capital Budgeting



Summary



Obtaining And Estimating Cash Flows



Introduction



Cost Terminology



Cost Estimation



General Accounting Principles



Cost Accounting Principles



Summary


Appendixes



Discrete Compound Interest Tables



Single-Sum, Uniform Series, and Gradient Series Interest Factors



Geometric Series Present Worth Interest Factors



Geometric Series Future Worth Interest Factors



Continuous Compound Interest Tables



Single-Sum, Uniform Series, and Gradient Series Interest Factors



Continuous Flow Interest Factors


Answers To Even-Numbered Problems