Overview

Fundamentals of Engineering Economic Analysis offers a powerful, visually-rich approach to the subject—delivering streamlined yet rigorous coverage of the use of economic analysis techniques in engineering design. This award-winning textbook provides an impressive array of pedagogical tools to maximize student engagement and comprehension, including learning objectives, key term definitions, comprehensive case studies, classroom discussion questions, and challenging practice problems. Clear, topically—organized chapters guide students from fundamental concepts of borrowing, lending, investing, and time value of money, to more complex topics such as capitalized and future worth, external rate of return, deprecation, and after-tax economic analysis. This fully-updated second edition features substantial new and revised content that has been thoroughly re-designed to support different learning and teaching styles. Numerous real-world vignettes demonstrate how students will use economics as practicing engineers, while plentiful illustrations, such as cash flow diagrams, reinforce student understanding of underlying concepts. Extensive digital resources now provide an immersive interactive learning environment, enabling students to use integrated tools such as Excel. The addition of the WileyPLUS platform provides tutorials, videos, animations, a complete library of Excel video lessons, and much more.

Full Product Details

Author:   John A. White ,  Kellie S. Grasman ,  Kenneth E. Case ,  Kim LaScola Needy
Publisher:   John Wiley & Sons Inc
Imprint:   John Wiley & Sons Inc
Edition:   2nd Revised edition
Dimensions:   Width: 20.80cm , Height: 3.80cm , Length: 1.30cm
Weight:   0.953kg
ISBN:  

9781118881064

ISBN 10:   1118881060
Pages:   544
Publication Date:   28 July 2020
Audience:   Professional and scholarly ,  Professional & Vocational
Format:   Loose-leaf
Publisher's Status:   Active
Availability:   Out of stock  
The supplier is temporarily out of stock of this item. It will be ordered for you on backorder and shipped when it becomes available.

Table of Contents

1 An Overview of Engineering Economic Analysis 1 1.1 Time Value of Money 2 1.2 Engineering Economy Principles 5 1.3 Economic Justification of Capital Investments 8 2 Time Value of Money Calculations 15 2.1 Cash Flow Diagrams 16 2.2 Single Cash Flows 19 2.3 Multiple Cash Flows: Irregular Cash Flows 27 2.4 Multiple Cash Flows: Uniform Series of Cash Flows 31 2.5 Multiple Cash Flows: Gradient Series of Cash Flows 38 2.6 Multiple Cash Flows: Geometric Series of Cash Flows 42 2.7 Compounding Frequency 46 3 Equivalence, Loans, and Bonds 59 3.1 Equivalence 60 3.2 Interest Payments and Principal Payments 65 3.3 Bond Investments 70 3.4 Variable Interest Rates 73 4 Present Worth 76 4.1 Comparing Alternatives 77 4.2 Present Worth Calculations 81 4.3 Benefit-Cost Analysis 87 4.4 Discounted Payback Period 99 4.5 Capitalized Worth 106 5 Annual Worth and Future Worth 113 5.1 Annual Worth 114 5.2 Future Worth 119 6 Rate of Return 128 6.1 Internal Rate of Return Calculations 130 6.2 External Rate of Return Calculations 137 7 Replacement Analysis 144 7.1 Cash Flow and Opportunity Cost Approaches to Replacement Analysis 145 7.2 Optimum Replacement Interval 150 8 Depreciation 155 8.1 Depreciation in Economic Analysis 156 8.2 Straight-Line and Declining Balance Depreciation Methods 158 8.3 Modified Accelerated Cost Recovery System (MACRS) 165 8.4 MACRS with Bonus Depreciation 171 9 Income Taxes 175 9.1 Corporate Income-Tax Rates 177 9.2 After-Tax Analysis Using Retained Earnings (No Borrowing) 180 9.3 After-Tax Analysis Using Borrowed Capital 188 9.4 Leasing Versus Purchasing Equipment 194 9.5 After-Tax Analysis with Bonus Depreciation 196 9.6 After-Tax Analysis with a Section 179 Expense Deduction 198 10 Inflation 203 10.1 The Meaning and Measure of Inflation 204 10.2 Before-Tax Analysis 208 10.3 After-Tax Analysis 211 10.4 After-Tax Analysis with Borrowed Capital 213 11 Break-Even, Sensitivity, and Risk Analysis 219 11.1 Break-Even Analysis 221 11.2 Sensitivity Analysis 225 11.3 Risk Analysis 231 12 Capital Budgeting 245 12.1 The Classical Capital Budgeting Problem 246 12.2 Capital Budgeting Problem with Indivisible Investments 249 12.3 Capital Budgeting Problem with Divisible Investments 254 13 Obtaining and Estimating Cash Flows 259 13.1 Cost Terminology 261 13.2 Cost Estimation 280 13.3 General Accounting Principles 285 13.4 Cost Accounting Principles 297 13.5 Economic Value Added 303 Appendix A 310 Appendix B 345 Index 349 Problems P1

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