Basics of Engineering Economy – L. Blank, A. Tarquin – 1st Edition


Basics of Engineering Economy, provides undergraduate students and practicing professionals with a solid preparation in the financial understanding of engineering and projects, as well as the techniques needed for evaluating and making sound decisions. Information on cost estimation, depreciation, and taxes has been updated to conform to new tax laws and a majority of the end-of-chapter are revised or new to this edition.

Distinguishing pedagogical characteristics of this market-leading text include its easy-to-read writing style, chapter objectives, worked examples, integrated spreadsheets, case studies, Fundamentals of Engineering (FE) exam questions, and numerous end-of-chapter problems. cross-referencing is indicated so users are able to locate additional material on any one subject in the text. Quick-solve (Q-Solv) and Excel-solve (E-Solve) icons found in the text indicate the difficulty of a problem, example, or spreadsheet.

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Table of Contents

Level 1 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 2 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: Benefit/Cost Analysis and Public Sector Economics
Chapter 10: Making Choices: the Method, MARR, and Multiple Attributes

Level 3 Making Decisions on Real-World Projects
Chapter 11: Replacement and Retentions Decisions
Chapter 12: Selection from Independent Projects Under Budget Limitation
Chapter 13: Breakeven Analysis

Level 4 Rounding Out the Study
Chapter 14: Effects of Inflation
Chapter 15: Cost Estimation and Indirect Cost Allocation
Chapter 16: Depreciation Methods
Chapter 17: After-Tax Economic Analysis
Chapter 18: Formalized Sensitivity Analysis and Expected Value Decisions
Chapter 19: More on Variation and Decision Making Under Risk

Appendix A Using Spreadsheets and Microsoft Excel
Appendix B Basics of Accounting Reports and Business Ratios
Appendix C: Comparing Economic Alternatives (from Gottfried's, Spreadsheet Tools for Engineers Using Excel)

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