Chapter_1%20-%20Engineering_Economy

Chapter_1%20-%20Engineering_Economy - bla18632_ch01.qxd...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
LEVEL ONE THIS IS HOW IT ALL STARTS LEVEL ONE This Is How It All Starts Chapter 1 Foundations of Engineering Economy Chapter 2 Factors: How Time and Interest Affect Money Chapter 3 Combining Factors Chapter 4 Nominal and Effective Interest Rates LEVEL TWO Tools for Evaluating Alternatives Chapter 5 Present Worth Analysis Chapter 6 Annual Worth Analysis Chapter 7 Rate of Return Analysis: Single Alternative Chapter 8 Rate of Return Analysis: Multiple Alternatives Chapter 9 BeneFt/Cost Analysis and Public Sector Economics Chapter 10 Making Choices: The Method, MARR, and Multiple Attributes LEVEL THREE Making Deci- sions on Real- World Projects Chapter 11 Replacement and Retention Decisions Chapter 12 Selection from Independent Projects under Budget Limitation Chapter 13 Breakeven Analysis LEVEL ±OUR Rounding Out the Study Chapter 14 Effects of In²ation Chapter 15 Cost Estimation and Indirect Cost Allocation Chapter 16 Depreciation Methods Chapter 17 After-Tax Economic Analysis Chapter 18 ±ormalized Sensitivity Analysis and Expected Value Decisions Chapter 19 More on Variation and Decision Making under Risk MASTER bla18632_ch01.qxd 08/11/2004 1:25 PM Page 2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
MASTER The foundations of engineering economy are introduced in these four chap- ters. When you have completed level one, you will be able to understand and work problems that account for the time value of money, cash Fows occurring at different times with different amounts, and equivalence at dif- ferent interest rates. The techniques you master here form the basis of how an engineer in any discipline can take economic value into account in virtu- ally any project environment. The eight factors commonly used in all engineering economy computa- tions are introduced and applied in this level. Combinations of these fac- tors assist in moving monetary values forward and backward through time and at different interest rates. Also, after these four chapters, you should be comfortable with using many of the Excel spreadsheet functions to solve problems. bla18632_ch01.qxd 08/11/2004 1:25 PM Page 3
Background image of page 2
MASTER Foundations of Engineering Economy The need for engineering economy is primarily motivated by the work that engineers do in performing analysis, synthesizing, and coming to a conclu- sion as they work on projects of all sizes. In other words, engineering econ- omy is at the heart of making decisions . These decisions involve the funda- mental elements of cash fows oF money, time, and interest rates . This chapter introduces the basic concepts and terminology necessary for an en- gineer to combine these three essential elements in organized, mathemati- cally correct ways to solve problems that will lead to better decisions. Many of the terms common to economic decision making are introduced here and used in later chapters of the text. Icons in the margins serve as back and for- ward cross-references to more fundamental and additional material through- out the book.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 46

Chapter_1%20-%20Engineering_Economy - bla18632_ch01.qxd...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online