Description
Engineering Economics: Financial Decision Making for Engineers, by Niall M. Fraser EBOOK PDF Instant Download
Table of Contents
- Engineering Economics Financial Decision Making for Engineers
- Brief Contents
- Contents
- Preface
- Content and Organization
- New to This Edition
- Special Features
- Additional Pedagogical Features
- Course Designs
- Supplements
- Chapter 1 Engineering Decision Making
- 1.1 Engineering Decision Making
- 1.2 What Is Engineering Economics?
- 1.3 Making Decisions
- 1.4 Dealing with Abstractions
- Example 1.1
- 1.5 The Moral Question: Three True Stories
- Example 1.2
- Example 1.3
- Example 1.4
- 1.6 Uncertainty and Sensitivity Analysis
- 1.7 How This Book Is Organized
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problem
- Chapter 2 Time Value of Money
- 2.1 Introduction
- 2.2 Interest and Interest Rates
- Example 2.1
- Example 2.1 Restated
- 2.3 Compound and Simple Interest
- 2.3.1 Compound Interest
- Example 2.2
- 2.3.2 Simple Interest
- Example 2.3
- 2.4 Effective and Nominal Interest Rates
- Example 2.4
- Example 2.5
- Example 2.6
- 2.5 Continuous Compounding
- Example 2.7
- 2.6 Cash Flow Diagrams
- Example 2.8
- 2.7 Depreciation
- 2.7.1 Reasons for Depreciation
- 2.7.2 Value of an Asset
- 2.7.3 Straight-Line Depreciation
- Example 2.9
- 2.7.4 Declining-Balance Depreciation
- Example 2.10
- Example 2.11
- 2.8 Equivalence
- 2.8.1 Mathematical Equivalence
- 2.8.2 Decisional Equivalence
- Example 2.12
- 2.8.3 Market Equivalence
- Example 2.13
- Review Problems
- Review Problem 2.1
- Answer
- Review Problems 2.2
- Review Problem 2.3
- Answer
- Review Problem 2.4
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Chapter 3 Cash Flow Analysis
- 3.1 Introduction
- 3.2 Timing of Cash Flows and Modelling
- 3.3 Compound Interest Factors for Discrete Compounding
- 3.4 Compound Interest Factors for Single Disbursements or Receipts
- Example 3.1
- 3.5 Compound Interest Factors for Annuities
- Example 3.2
- Example 3.3
- Example 3.4
- Example 3.5
- 3.6 Conversion Factor for Arithmetic Gradient Series
- Example 3.6
- 3.7 Conversion Factor for Geometric Gradient Series
- Example 3.7
- Example 3.8
- 3.8 Non-Standard Annuities and Gradients
- Example 3.9
- Example 3.10
- 3.9 Present Worth Computations When Nā ā
- Example 3.11
- Review Problems
- Review Problem 3.1
- Review Problem 3.2
- Answer
- Review Problem 3.3
- Answer
- Review Problem 3.4
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Appendix 3A Derivation of Discrete Compound Interest Factors
- 3A.1 Compound Amount Factor
- 3A.2 Present Worth Factor
- 3A.3 Sinking Fund Factor
- 3A.4 Uniform Series Compound Amount Factor
- 3A.5 Capital Recovery Factor
- 3A.6 Series Present Worth Factor
- 3A.7 Arithmetic and Geometric Gradients
- Chapter 4 Comparison Methods Part 1
- 4.1 Introduction
- 4.2 Relations Among Projects
- Example 4.1
- 4.3 Minimum Acceptable Rate of Return (MARR)
- 4.4 Present Worth (PW) and Annual Worth (AW) Comparisons
- 4.4.1 Present Worth Comparisons for Independent Projects
- Example 4.2
- Example 4.3
- 4.4.2 Present Worth Comparisons for Mutually Exclusive Projects
- Example 4.4
- 4.4.3 Annual Worth Comparisons
- Example 4.5
- 4.4.4 Comparison of Alternatives With Unequal Lives
- Example 4.6 (Modification of Example 4.3 )
- Example 4.7
- 4.5 Payback Period
- Example 4.8
- Example 4.9
- Example 4.10
- Review Problems Review Problem 4.1
- Answer
- Review Problem 4.2
- Answer
- Review Problem 4.3
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Appendix 4A The MARR and the Cost of Capital
- 4A.1 Risk and the Cost of Capital
- 4A.2 Company Size and Sources of Capital
- Chapter 5 Comparison Methods Part 2
- 5.1 Introduction
- 5.2 The Internal Rate of Return
- Example 5.1
- Example 5.2
- 5.3 Internal Rate of Return Comparisons
- 5.3.1 IRR for Independent Projects
- Example 5.3
- 5.3.2 IRR for Mutually Exclusive Projects
- Example 5.4
- Example 5.5
- Example 5.6 (Reprise of Example 4.4 )
- 5.3.3 Multiple IRRs
- Example 5.7
- 5.3.4 External Rate of Return Methods
- Example 5.8 (Example 5.7 Revisited: ERR)
- Example 5.9 (Example 5.7 Revisited Again: An Approximate ERR)
- 5.3.5 When to Use the ERR
- 5.4 Rate of Return and Present/Annual Worth Methods Compared
- 5.4.1 Equivalence of Rate of Return and Present/Annual Worth Methods
- Example 5.10
- 5.4.2 Why Choose One Method Over the Other?
- Example 5.11
- Review Problems
- Review Problem 5.1
- Answer
- Review Problem 5.2
- Answer
- Review Problem 5.3
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Chapter 6 Financial Accounting and Business Plans
- 6.1 Introduction
- 6.2 Elements of Financial Accounting
- 6.2.1 Measuring the Performance of a Firm
- 6.2.2 The Balance Sheet
- Example 6.1
- Example 6.2
- 6.2.3 The Income Statement
- Example 6.3
- Example 6.4
- 6.2.4 Estimated Values in Financial Statements
- 6.2.5 Financial Ratio Analysis
- 6.2.6 Financial Ratios
- 6.3 Preparing a Business Plan
- 6.3.1 Executive Summary
- 6.3.2 Company Description
- 6.3.3 Market Analysis/Future Outlook
- 6.3.4 Management and Organization
- 6.3.5 Funding Requirements
- 6.3.6 Sales and Marketing
- 6.3.7 Appendix
- Review Problems Review Problem 6.1
- Answer
- Review Problem 6.2
- Answer
- Review Problem 6.3
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Appendix 6A Cost Estimation
- 6A.1 Introduction
- 6A.2 Cost Concepts
- 6A.3 Cost Estimation Methods and Classification of Cost of Cost Estimates
- 6A.4 Adjusting for Inflation, Location, and Other Factors
- Example 6A.1
- Answer:
- 6A.5 Cost Estimating Relationships
- 6A.6 Dealing with Indirect Costs
- Example 6A.2
- Problems
- Chapter 7 Replacement Decisions
- 7.1 Introduction
- 7.2 A Replacement Example
- Example 7.1
- 7.3 Reasons for Replacement or Retirement
- 7.4 Capital Costs and Other Costs
- 7.5 Defender and Challenger Are Identical
- Example 7.2
- Example 7.3
- 7.6 Challenger Is Different From Defender; Challenger Repeats Indefinitely
- Example 7.4
- Example 7.5
- Example 7.6
- 7.6.1 Converting From Subcontracted to In-House Production
- Example 7.7
- 7.6.2 The Irrelevance of Sunk Costs
- Example 7.8
- 7.6.3 When Capital or Operating Costs Are Non-Monotonic
- Example 7.9
- 7.7 Challenger Is Different From Defender; Challenger Does Not Repeat
- Example 7.10
- Example 7.11
- Review Problems
- Review Problem 7.1
- Answer
- Review Problem 7.2
- Answer
- Review Problem 7.3
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Chapter 8 Taxes
- 8.1 Introduction
- 8.2 Personal Income Taxes and Corporate Income Taxes Compared
- 8.3 Corporate Tax Rates
- 8.4 Before- and After-Tax MARR
- Example 8.1
- 8.5 The Effect of Taxation on Cash Flows
- Example 8.2A
- 8.5.1 The Effect of Taxes on First Cost
- Example 8.2B
- 8.5.2 The Effect of Taxes on Savings
- Example 8.2C
- 8.5.3 The Effect of Taxes on Salvage or Scrap Value
- Example 8.2D
- 8.6 Present Worth and Annual Worth Tax Calculations
- Example 8.2E
- Example 8.2F
- 8.7 IRR Tax Calculations
- 8.7.1 Accurate IRR Tax Calculations
- Example 8.2G
- 8.7.2 Approximate After-Tax Rate-of-Return Calculations
- Example 8.2H
- Example 8.3
- 8.8 Specific Tax Rules in Canada
- 8.8.1 The Capital Cost Allowance System
- Example 8.4
- 8.8.2 Undepreciated Capital Cost and the Half-Year Rule
- Example 8.5
- 8.8.3 The Capital Tax Factor and Capital Salvage Factor
- Example 8.6
- 8.8.4 Components of a Complete Tax Calculation
- Example 8.7
- Example 8.8
- Example 8.9
- Review Problems Review Problem 8.1
- Answer
- Review Problem 8.2
- Answer
- Review Problem 8.3
- Answer
- Review Problem 8.4
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Appendix 8A Deriving the Capital Tax Factor
- Chapter 9 Inflation
- 9.1 Introduction
- 9.2 Measuring the Inflation Rate
- 9.3 Economic Evaluation With Inflation
- 9.3.1 Converting Between Real and Current Dollars
- Example 9.1
- Example 9.2
- Example 9.3
- 9.4 The Effect of Correctly Anticipated Inflation
- 9.4.1 The Effect of Inflation on the MARR
- Example 9.4
- Example 9.5
- 9.4.2 The Effect of Inflation on the IRR
- Example 9.6
- 9.5 Project Evaluation Methods With Inflation
- Example 9.7
- Example 9.8
- Example 9.9
- Example 9.10
- Review Problems
- Review Problem 9.1
- Answer
- Review Problem 9.2
- Answer
- Review Problem 9.3
- Answer
- Review Problem 9.4
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Appendix 9A Computing a Price Index
- Example 9A.1
- Example 9A.2
- Chapter 10 Public Sector Decision Making
- 10.1 Introduction
- 10.2 Market Failure
- 10.2.1 Market Failure Defined
- 10.2.2 Remedies for Market Failure
- 10.3 Decision Making in the Public Sector
- 10.3.1 The Point of View Used for Project Evaluation
- 10.3.2 Identifying and Measuring the Costs of Public Projects
- 10.3.3 Identifying and Measuring the Benefits of Public Projects
- Example 10.1
- 10.3.4 BenefitāCost Ratios
- Example 10.2
- Example 10.3
- Example 10.4
- Example 10.5
- 10.3.5 The MARR in the Public Sector
- Review Problems Review Problem 10.1
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Chapter 11 Project Management
- 11.1 Introduction
- 11.2 Project Management Lifecycle
- 11.2.1 Initiation
- 11.2.2 Planning
- 11.2.3 Execution
- 11.2.4 Monitoring and Controlling
- 11.2.5 Closure
- 11.3 Project Management Tools
- 11.3.1 Work Breakdown Structure
- Example 11.1
- 11.3.2 Gantt Charts
- Example 11.2
- 11.3.3 The Critical Path Method
- Example 11.3
- 11.3.3.1 Project Scheduling and the Critical Path Method
- Example 11.4
- 11.3.3.2 Project Crashing and TimeāCost Tradeoffs
- Example 11.5
- Review Problems
- Review Problem 11.1
- Answer
- Review Problem 11.2
- Answer
- Review Problem 11.3
- Review Problem 11.4
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Chapter 12 Dealing With Uncertainty and Risk
- 12.1 Introduction
- 12.2 Sensitivity Graphs
- Example 12.1
- 12.3 Break-Even Analysis
- 12.3.1 Break-Even Analysis for a Single Project
- Example 12.2
- 12.3.2 Break-Even Analysis for Multiple Projects
- Example 12.3
- 12.4 Basic Concepts of Probability
- Example 12.4
- Example 12.5
- Example 12.6
- 12.5 Structuring Decisions With Decision Trees
- Example 12.7
- Example 12.8
- Example 12.9
- Example 12.10
- Example 12.11
- Review Problems
- Review Problem 12.1
- Answer
- Review Problem 12.2
- Answer
- Review Problem 12.3
- Answer
- Review Problem 12.4
- Answer
- Summary
- Problems
- A. Key Concepts
- B. Applications
- C. More Challenging Problems
- Appendix 12A Decision Matrices
- Example 12A.1
- Problems
- Appendix A Compound Interest Factors for Discrete Compounding, Discrete Cash Flows
- Appendix B Answers to Selected Problems
- Glossary
- Index