Fundamentals of Engineering Economic Analysis

Fundamentals of Engineering Economic Analysis

By: John A. White (author), Kellie S. Grasman (author), David B. Pratt (author), Kenneth E. Case (author), Kim LaScola Needy (author)Hardback

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Description

Fundamentals of Engineering Economic Analysis, 1 st edition provides streamlined topical coverage with a modern and pedagogically-rich presentation. This text features a wealth of real-world vignettes to reinforce how students will use economics in their future careers as well as to drive student motivation and interest. An enlightening approach combined with strong digital offerings make the course manageable, equipping students with the knowledge they need as future engineers.

About Author

Kim LaScola Needy is the head of the industrial engineering department and Twenty-First Century Professor in Engineering at the University of Arkansas. After receiving her bachelor's degree from the University of Pittsburgh, Dr. Needy worked in the field of information technology at PPG Industries and Boeing, earning a master's degree from the University of Pittsburgh and then a Ph.D. from Wichita State. Dr. Needy's research interests include engineering management, sustainability and supply chain optimization.?Her research has led to 95 refereed publications and recognition by societies such as the Institute of Industrial Engineers, which has named her a Fellow. Kellie Grasman is a Lecturer at Missouri University of Science and Technology. She reieved her MS, ME, and MBA at the University of Michigan Missouri Science and Technology.

Contents

CHAPTER 1 An Overview of Engineering Economic Analysis 3 Learning Objectives 4 Introduction 4 1-1 Time Value of Money 4 1-2 Engineering Economy Principles 7 1-3 Economic Justification of Capital Investments 10 Summary 15 Key Terms 16 FE-Like Problems 17 Problems 18 CHAPTER 2 Time Value of Money Calculations 23 Learning Objectives 23 Introduction 23 2-1 Cash Flow Diagrams 24 2-2 Single Cash Flows 26 2-3 Multiple Cash Flows 35 2-4 Compounding Frequency 55 Summary 62 Key Terms 66 FE-Like Problems 67 Problems 69 CHAPTER 3 Equivalence, Loans, and Bonds 93 Learning Objectives 93 Introduction 93 3-1 Equivalence 94 3-2 Interest Payments and Principal Payments 100 3-3 Bond Investments 106 3-4 Variable Interest Rates 110 3-5 Annual Percentage Rate 111 Summary 113 Key Terms 114 FE-Like Problems 114 Problems 116 CHAPTER 4 Present Worth 125 Learning Objectives 125 Introduction 126 4-1 Comparing Alternatives 126 4-2 Present Worth Calculations 130 4-3 Benefit-Cost Analysis 137 4-4 Discounted Payback Period 144 4-5 Capitalized Worth 152 Summary 157 Key Terms 159 FE-Like Problems 159 Problems 162 CHAPTER 5 Annual Worth and Future Worth 179 Learning Objectives 179 Introduction 179 5-1 Annual Worth 180 5-2 Future Worth 185 Summary 194 Key Terms 194 FE-Like Problems 195 Problems 196 CHAPTER 6 Rate of Return 213 Learning Objectives 213 Introduction 214 6-1 Internal Rate of Return Calculations 215 6-2 External Rate of Return Calculations 224 Summary 231 Key Terms 232 FE-Like Problems 232 Problems 235 CHAPTER 7 Replacement Analysis 257 Learning Objectives 258 Introduction 258 7-1 Fundamentals of Replacement Analysis 258 7-2 Cash Flow and Opportunity Cost Approaches 261 7-3 Optimum Replacement Interval 264 Summary 268 Key Terms 269 FE-Like Problems 269 Problems 271 CHAPTER 8 Depreciation 285 Learning Objectives 286 Introduction 286 8-1 The Role of Depreciation in Economic Analysis 287 8-2 Language of Depreciation 288 8-3 Straight-Line and Declining Balance Depreciation Methods 289 8-4 Modified Accelerated Cost Recovery System (MACRS) 296 Summary 301 Key Terms 303 FE-Like Problems 303 Problems 305 CHAPTER 9 Income Taxes 317 Learning Objectives 317 Introduction 317 9-1 Corporate Income Tax Rates 319 9-2 After-Tax Analysis Using Retained Earnings (No Borrowing) 322 9-3 After-Tax Analysis Using Borrowed Capital 330 9-4 Leasing versus Purchasing Equipment 336 Summary 338 Key Terms 340 FE-Like Problems 340 Problems 342 CHAPTER 10 Inflation 359 Learning Objectives 359 Introduction 360 10-1 The Meaning and Measure of Inflation 360 10-2 Before-Tax Analysis 364 10-3 After-Tax Analysis 367 10-4 After-Tax Analysis with Borrowed Capital 369 Summary 373 Key Terms 375 FE-Like Problems 375 Problems 377 CHAPTER 11 Break-Even, Sensitivity, and Risk Analysis 391 Learning Objectives 391 Introduction 392 11-1 Break-Even Analysis 393 11-2 Sensitivity Analysis 398 11-3 Risk Analysis 405 Summary 418 Key Terms 419 FE-Like Problems 419 Problems 421 CHAPTER 12 Capital Budgeting 437 Learning Objectives 438 Introduction 438 12-1 The Classical Capital Budgeting Problem 438 12-2 Capital Budgeting Problem with Indivisible Investments 440 12-3 Capital Budgeting Problem with Divisible Investments 446 12-4 Practical Considerations in Capital Budgeting 449 Summary 450 Key Terms 451 FE-Like Problems 451 Problems 453 APPENDIX A a Single Sums, Uniform Series, and Gradient Series Interest Factors 471 b Geometric Series Present Worth Interest Factors 496 c Geometric Series Future Worth Interest Factors 501 APPENDIX B Obtaining and Estimating Cash Flows 507 B-1 Introduction 506 B-2 Cost Terminology 508 B-3 Cost Estimation 530 B-4 General Accounting Principles 537 B-5 Cost Accounting Principles 550 Summary 561 FE-Like Problems 562 Problems 563 ANSWERS TO SELECTED EVEN NUMBERED PROBLEMS 577 INDEX 599

Product Details

  • ISBN13: 9781118414705
  • Format: Hardback
  • Number Of Pages: 624
  • ID: 9781118414705
  • weight: 1216
  • ISBN10: 1118414705

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