Enginering economy

　　Preface
　　Acknowledgments
　　PART 1 Fundamentals of Engineering Economy
　　 CHAPTER 1 Introduction to Engineering Economy
　　 1.1 Introduction
　　 1.2 The Principles of Engineering Economy
　　 1.3 Engineering Economy and the Design Process
　　 1.4 Using Spreadsheets in Engineering Economic Analysis
　　 1.5 Summary
　　 CHAPTER 2 Cost Concepts and Design Economics
　　 2.1 Cost Terminology
　　 2.2 The General Economic Environment
　　 2.3 Cost-Driven Design Optimization
　　 2.4 Present Economy Studies
　　 2.5 Case Study――The Economics of Daytime Running Lights
　　 2.6 Summary
　　 Appendix 2-A Accounting Fundamentals
　　 CHAPTER 3 Cost-Estimation Techniques
　　 3.1 Introduction
　　 3.2 An Integrated Approach
　　 3.3 Selected Estimating Techniques (Models)
　　 3.4 Parametric Cost Estimating
　　 3.5 Cost Estimation in the Design Process
　　 3.6 Case Study――Demanufacturing of Computers
　　 3.7 Summary
　　 CHAPTER 4 The Time Value of Money
　　 4.1 Introduction
　　 4.2 Simple Interest
　　 4.3 Compound Interest
　　 4.4 The Concept of Equivalence
　　 4.5 Notation and Cash-Flow Diagrams and Tables
　　 4.6 Relating Present and Future Equivalent Values of Single Cash Flows
　　 4.7 Relating a Uniform Series (Annuity) to Its Present and Future Equivalent Values
　　 4.8 Summary of Interest Formulas and Relationships for Discrete Compounding
　　 4.9 Deferred Annuities (Uniform Series)
　　 4.10 Equivalence Calculations Involving Multiple Interest Formulas
　　 4.11 Uniform (Arithmetic) Gradient of Cash Flows
　　 4.12 Geometric Sequences of Cash Flows
　　 4.13 Interest Rates that Vary with Time
　　 4.14 Nominal and Effective Interest Rates
　　 4.15 Compounding More Often than Once per Year
　　 4.16 Interest Formulas for Continuous Compounding and Discrete Cash Flows
　　 4.17 Case Study――Understanding Economic “Equivalence”
　　 4.18 Summary
　　Part Ⅱ Engineering Economy in Action
　　 CHAPTER 5 Evaluating a Single Project
　　 5.1 Introduction
　　 5.2 Determining the Minimum Attractive Rate of Return (MARR)
　　 5.3 The Present Worth Method
　　 5.4 The Future Worth Method
　　 5.5 The Annual Worth Method
　　 5.6 The Internal Rate of Return Method
　　 5.7 The External Rate of Return Method
　　 5.8 The Payback (Payout) Period Method
　　 5.9 Case Study――A Proposed Capital Investment to Improve Process Yield
　　 5.10 Summary
　　 Appendix 5-A The Multiple Rate of Return Problem with the IRR Method
　　 CHAPTER 6 Comparison and Selection among Alternatives
　　 6.1 Introduction
　　 6.2 Basic Concepts for Comparing Alternatives
　　 6.3 The Study (Analysis) Period
　　 6.4 Useful Lives Are Equal to the Study P.eriod
　　 6.5 Useful Lives Are Unequal among the Alternatives
　　 6.6 Personal Finances
　　 6.7 Case Study--Ned and Larry's Ice Cream Company
　　 6.8 Postevaluatio.n of Results
　　 6.9 Summary
　　 CHAPTER 7 Depreciation and Income Taxes
　　 7.1 Introduction
　　 7.2 Depreciation Concepts and Terminology
　　 7.3 The Classical (Historical) Depreciation, Methods
　　 7.4 The Modified Accelerated Cost Recovery' System
　　 7.5 A Comprehensive Depreciation Example
　　 7.6 Introduction to ,Income Taxes
　　 7,7 The Effective (Marginal)Corporate Income Tax Rate
　　 7.8 Gain (Loss) on the Disposal of an Asset
　　 7.9 General.Procedure for Making After;Tax Economic Analyses
　　 7.10 Illustration of Computations of ATCFs
　　 7.11 Economic Value Added
　　 7.12 Summary
　　 CHAPTER 8 Price Chancles and Exchancle Rates
　　 8.1 Introduction
　　 8.2 Terminology and Basic Concepts
　　 8.3 Fixed and Responsive Annuities
　　 8.4 Spreadsheet Application
　　 8.5 Foreign Exchange Rates and Purchasing Power Concepts
　　 8.6 Case Study--Selecting Electric Moto.rs to Power an Assembly Line
　　 8.7 Summary
　　 CHAPTER 9 Replacement Analysis
　　 9.1 Introduction
　　 9.2 Reasons for Replacement Anaiysis
　　 9.3 Factors that Must Be Considered in Replacement Studies
　　 9.4 Typisal Replacement Problems
　　 9.5 Determining the Economic Life:of a New Asset (Challenger)
　　 9.6 Determining the Economic Life of a Defender
　　 9.7 Comparisons in which the Defender's Useful Life Differs from that of the Challenger
　　 9.8 Retirement without Replacement (Abandonment)
　　 9.9 AfterTax Replacement Studies
　　 9.10 Case Study--Replacement of a Hospital's Emergency Electrical Supply System
　　 9.11 Summary
　　PART Ⅲ Additional Topics in Engineering Economy
　　 CHAPTER 10 Evaluating Projects with the Benefit-Cost Ratio Method
　　 10.1 Introduction
　　 10.2 Perspective and Terminology for Analyzing Public Projects
　　 10.3 Self-Liquidating Projects
　　 10.4 Multiple-Purpose Projects
　　 10.5 Difficulties in Evaluating Public-Sector Projects
　　 10.6 What Interest Rate Should Be Used for Public Projects?
　　 10.7 The Benefit-Cost Ratio Method
　　 10.8 Evaluating Independent Projects by B-C Ratios
　　 10.9 Comparison of Mutually Exclusive Projects by B--C Rations
　　 10.10 Criticisms and Shortcomings of the Benefit-Cost Ratio Method
　　 10.11 Case Study--Improving a Railroad Crossing
　　 10.12 Summary
　　 CHAPTER 11 Breakeven and Sensitivity Analysis
　　 11.1 Introduction.
　　 11.2 Breakeven Analysis
　　 11.3 Sensitivity Analysis
　　 11.4 Multiple Factor Sensitivity Analysis
　　 11.5 Case Study--Analysis of a Business Venture
　　 11.6 Summary
　　 CHAPTER 12 Probabilistic Risk Analysis
　　 12.1 Introduction
　　 12.2 Sources of Uncertainty
　　 12.3 The Distribution of Random Variables
　　 12.4 Evaluation of Projects with Discrete Random Variables
　　 12.5 Evaluation of Projects with Continuous Random Variables
　　 12.6 Evaluation of Uncertainty by Monte Carlo Simulation
　　 12.7 Performing Monte Carlo Simulation with a Computer
　　 12.8 Decision Trees
　　 12.9 Real Options Analysis
　　 12.10 Case Study--The Oils Well That Ends Well Company
　　 12.11 Summary
　　 CHAPTER 13 The Capital Budgeting Process
　　 13.1 Introduction
　　 13.2 Debt Capital
　　 13.3 Equity Capital
　　 13.4 The Weighted Average Cost of Capital (WACC)
　　 13.5 Project Selection
　　 13.6 Postmortem Review
　　 13.7 Budgeting of Capital Investments and Management Perspective
　　 13.8 Leasing Decisions
　　 13.9 Capital Allocation
　　 13.10 Case Study--Financing an Automobile
　　 13.11 Summary
　　 CHAPTER 14 Decision Making Considering Multiattributes
　　 14.1 Introduction
　　 14.2 Examples of Multiattribute Decisions
　　 14.3 Choice of Attributes
　　 14.4 Selection of a Measurement Scale
　　 14.5 Dimensionality of the Problem
　　 14.6 Noncompensatory Models
　　 14.7 Compensatory Models
　　 14.8 Summary
　　PART Ⅳ Appendices
　　 A Using Excel to Solve Engineering Economy Problems
　　 B Abbreviations and Notation
　　 C Interest and Annuity Tables for Discrete Compounding
　　 D Interest and Annuity Tables for Continuous Compounding
　　 E Standard Normal Distribution
　　 F Selected References
　　 G Answers to Selected Problems
　　Index