Business & Economics

Fundamentals of Engineering Economics, Chan S. Park, 2004

Author: Pearson Education, Inc

Publisher: Bukupedia

ISBN:

Category: Business & Economics

Page: 552

View: 785

Preface Engineering economics is one of the most practical subject matters in the engineering curriculum. but it is always challenging and an ever-changing discipline. Contemporary Engineering Economics (CEE) was first published in 1993, and since then we have tried to reflect changes in the business world in each new edition, along with the latest innovations in education and publishing. These changes have resulted in a better, more complete textbook, but one that is much longer than it was originally intended. This may present a problem: today, covering the textbook in a single term is increasingly difficult. Therefore, we decided to create Fundamentals of Engineering Economics (FEE) for those who like Fundanzentals but think a smaller, more concise textbook would better serve their needs. This text aims not only to provide sound and comprehensive coverage of the concepts of engineering economics, but also to address the practical concerns of engineering economics. More specifically, this text has the following goals: 1. To build a thorough understanding of the theoretical and conceptual basis upon which the practice of financial project analysis is built. 2. To satisfy the very practical needs of the engineer toward making informed financial decisions when acting as a team member or project manager for an engineering project. 3. To incorporate all critical decision-making tools-including the most contemporary, computer-oriented ones that engineers bring to the task of making informed financial decisions. 4. To appeal to the full range of engineering disciplines for which this course is often required: industrial, civil, mechanical, electrical, computer, aerospace, chemical, and manufacturing engineering, as well as engineering technology. This text is intended for use in the introductory engineering economics course. Unlike the larger textbook (CEE), it is possible to cover FEE in a single term, and perhaps even to supplement it with a few outside readings or cases. Although the chapters in FEE are arranged logically, they are written in a flexible, modular format. allowing instructors to cover the material in a different sequence. xvi PREFACE We decided to streamline the textbook by retaining the depth and level of rigor in CEE, while eliminating some less critical topics in each chapter. This resulted in reducing the total number of chapters by four chapters in two steps. Such core topics as the time value of money, measures of investment worth, development of project cash flows. and the relationship between risk and return are still discussed in great detail. First, we eliminated the three chapters on cost accounting, principles of investing, and capital budgeting. We address these issues in other parts of the textbook, but in less depth than was contained in the deleted chapters. Second, we consolidated the two chapters on depreciation and income taxes into one chapter, thus eliminating one more chapter. This consolidation produced some unexpected benefits-students understand depreciation and income taxes in the context of project cash flow analysis, rather than a separate accounting chapter. Third. moving the inflation material from late in the textbook to the end of the equivalence chapters enables students to understand better the nature of inflation in the context of time value of money. Fourth, the project cash flow analysis chapter (Chapter 9) is significantly streamlined-it begins with the definitions and classifications of various cost elements that will be a part of a project cash flow statement. Then. it presents the income tax rate to use in developing a project cash flow statement. It also presents the appropriate interest rate to use in after-tax economic analysis. Finally, it illustrates how to develop a project cash flow statement considering (1) operating activities, (2) investing activities, and (3) financing activities. Fifth, the handling project uncertainty chapter (Chapter 10) has been consolidated by introducing the risk-adjusted discount rate approach and investment strategies under uncertainty, but eliminating the decision-tree analysis. Finally, the chapter on understanding financial statements has been moved to the end of the book as a capstone chapter, illustrating that a corporation does not make a large-scale investment decision on an engineering project based on just profitability alone. It considers both the financial impact on the bottom-line of business as well as the market value of the corporation. FEE is significantly different from CEE, but most of the chapters will be familiar to users of CEE. Although we pruned some material and clarified, updated, and otherwise improved all of the chapters, FEE should still be regarded as an alternative version of CEE. Although FEE is a streamlined version of CEE, we did retain all of the pedagogical elements and supporting materials that helped make CEE so successful. Some of the features are: PREFACE xvii Each chapter opens with a real economic decision describing how an individual decision maker or actual corporation has wrestled with the issues discussed in the chapter. These opening cases heighten students' interest by pointing out the real-world relevance and applicability of what might otherwise seem to be dry technical material. There are a large number of end-of-chapter problems and exam-type questions varying in level of difficulty; these problems thoroughly cover the book's various topics. Most chapters contain a section titled "Short Case Studies with Excel," enabling students to use Excel to answer a set of questions. These problems reinforce the concepts covered in the chapter and provide students with an opportunity to become more proficient with the use of an electronic spreadsheet. The integration of computer use is another important feature of F~lndametztuls of Engineering Econortlics. Students have greater access to and familiarity with the various spreadsheet tools, and instructors have greater inclination either to treat these topics explicitly in the course or to encourage students to experiment independently. A remaining concern is that the use of computers will undermine true understanding of course concepts. This text does not promote the trivial or mindless use of computers as a replacement for genuine understanding of and skill in applying traditional solution methods. Rather, it focuses on the computer's productivityenhancing benefits for complex project cash flow development and analysis. Specifically, Fundatnentuls of Engineering Economics includes: A robust introduction to computer automation in the form of the Cash Flow Analyzer problem, which can be accessed from the book's website An introduction to spreadsheets using Microsoft Excel examples. For spreadsheet coverage, the emphasis is on demonstrating complex concepts that can be resolved much more efficiently on a computer than by traditional longhand solutions. The companion website ( ) has been created and maintained by the author.This text takes advantage of the Internet as a tool that has become an increasingly important resource medium used to access a variety of information on the Web. This website contains a variety of resources for both instructors and students, including sample test questions, supplemental problems, and various on-line financial calculators. As you type the address and click the open button, you will see the Fz~ndamentals of Engineering Economics Home Page (Figure PI). As you will note from the figure, several menus are available. Each menu item is explained as follows: Study Guides. Click this menu to find out what resource materials are available on the website. This site includes (1) sample text questions, (2) solutions to chapter problems, (3) interest tables, and (4) computer notes with Excel files of selected example problems in the text. .pap!,io~d elep 3!ruouo3a aa!luluasaldal ayl JO auros ale sa3!pu! 1so3 luauriCo1dura pue .sarn;i!~ ill!~!l3npord 'sa3!pu! a31~d~ aurnsuo:, ayl L~e~n3!i~u1e d.s puaq ale1 isalalu! lua3a1 isour ayl se IIaM se uoqerurojuy a3pd pue is03 sapnpu! uo!was s!~~sy~ eJr!IlII OUOJ~ .suo!le3!1qnd il~qmourp uv 'L~yaam 'ilpep pue 'shzau aug-uo olu! 21a11n0 s~asuap !a!p al!s ayl 'qaM ayl uo sIa1 -$no s~a[usp ueur~sn o!le,i 01 ssa~sea p!~o.tdu oqsas slru 'sMaN le!x~uru!a .saxel sule8 lel1de3 se IIa~fi se sa1npay3s uogepardap uo uo!~r?ur~o~alue!p -01-dn ~sorua yl pug I~MnolC os 'qa~ajy l uo salrs xel sno1.1eao1 pap~ao~alde syu!~'sa xel auroorr! aimed -103 se IlaM se ~euos~Baud! pnpu! 'uo!luruloju! xel8~!3ueys-~a,i8au !leu!ruas -s!p jo surlal u! asnoyBu!~ea~es sr? ai\.las [I!M uo!pas s!y_L .uo!yeurrojuI xe~ .Joyme ayl ilq pado~aaaps aiou alnpa~pu g osle 1p.liz noA.illa!lea u! se [[aM se aLun[oa u! papuedxa aq I~!M il.~e~q!als u3 ayl 'punoj lo padolaaap ale sauo MSU se Inq 'papr~olda q 111" sura1qold ase3 Ma3 e L~uok iC{[e~lru~ 'uo!le301 s!q~ le palsq s! sa!pnls ase3 ~!UIOUOS~u!~.1 aau!8ua pau3ysap -1IaM jo uor13a1103 v 'auryl ISJ!J ayl .IOJ lxal s!yl Idope oys~loi ~nl~s0u1! prr? ue se paprao~da le UIalshs Jalsauras e su ITaM se lipallenh e uo paseq Yaug -1no aslno3 'L11e3!dil~' uo!lu3o[ s~qul! punoj s! lxa3 s7!z~louon3B zl!naau?Suy SO s~viuauvpu?zaj yl yl!~as.1 1103 3!urou03a 2u!laau!8ua ue q3ea1 oq,n s~ol -nn.llsu! 01 Injasn uoyeurJoju! sapnpu! uoy3as s!.s~a~ ~nosa~ao y~n~pu~ .slndliio :,!rldr?.r2 papa~as lasn puc saInpour [euo!lelndwo:, JO iCe.r~e aalsualsa ue (5) pue 'suo1lr?3~~!poupr w ~ndu!e lsp loj lollpa MOLT qsc3 asn-01-Ass:, puc aIq!xaa e (I) sap~aoldI! pue ;ilq!q!xau pue a3uaruaauo3 loj ua,ipp nuaur s! $1 .s!s -iC~eu3~!r uouo3a jo sporl13u1 pasn iC1luanba.q lsou~a yl sapnpu! aleM1jos aqL .eaq u! uall!liM a8e~3uda le.uqos ~alndu10p3a lei8alu~u e s! laziileuv M~J I ysv3 ay_Z,.laula$uIa yl uo aIqeIyeae s.to~elnq-erI,e !sueu!j SIIO!J~A JO uo!lsa[103 e jz) p11e ~azd~euMvOI J yse3 e (I) sapnpu! u0!13as s!.S~[OO Ls !s~~[~uv -- r a r,?~: w oo. v ...it,> btn~n-, rds t u r n ~ ' PREFACE xix Money and Investing. This section provides a gateway to a variety of information useful to co~lductinge ngineering economic analysis. For example, a direct link is provided to the most up-to-date stock prices. options, and mutual funds performances. FEE includes several ancillary materials designed to enhance the student's learning experience, while making it easier for the instructor to prepare for and conduct classes. The ancillaries are described below. For Students Excel for Engineering Economics (supplement), containing information on how to use Excel for engineering economic studies and various Excel applications. Study Guides for F~~ndarnentalosf Engineering Ecorlomics (supplement), which contains more than 200 completely worked out solutions and guides on how to take the FE exam on engineering economics and sample test questions. For Instructors A comprehensive Instructor's Manlrnl that includes answers to end-of-chapter problems and Excel solutions to all complex problems and short case studies. A CD-ROM containing Powerpoint slides for lecture notes. the entire contents of the Instructor Manual in Word format, test questions, and Excel spreadsheet files. This book reflects the efforts of a great many individuals over a number of years. In particular, I would like to recognize the following individuals. whose reviews and comments have contributed to this edition. Once again, I would like to thank each of them: Richard V. Petitt, lJnited States Military Academy; James R. Smith, Tennessee Technological University; Bruce Hartsough, University of California at Davis; Iris V. Rivero, Texas Tech University; Donald R. Smith, Texas A&M University; Bruce McCann, University of Texas at Austin: Dolores Gooding, University of South Florida; and Stan Uryasev. University of Florida. Personally, I wish to thank the following individuals for their additional input to the new edition: Michael D. Park, McKinsey & Company, who read the entire manuscript and offered numerous and critical comments to improve the content of the book; Luke Miller, Yeji Jung and Edward Park, who helped me in preparing the Instructor's Manual: Junmo Yang, who helped me in developing the book website: Dorothy Marrero, my editor at Prentice Hall. who assumed responsibility for the overall project; and Scott Disanno, the production editor. who oversaw the entire book production. CHAN S. PARK Auburn, Alabama nderstandi
Business & Economics

Fundamentals of Engineering Economics

Author: Chan S. Park

Publisher: Prentice Hall

ISBN:

Category: Business & Economics

Page: 538

View: 879

New from the author of the best-selling "Contemporary Engineering Economics" book, "Fundamentals of Engineering Economics" offers concise, but in-depth coverage of all fundamental topics of Engineering Economics. A four-part organization outlines an understanding of money and its management, how to evaluate business and engineering assets, .the development of project cash flows, and special topics in engineering economics. For individuals interested in the field of industrial, civil, mechanical and electrical engineering.
Business & Economics

Fundamentals of Engineering Economics: International Edition

Author: Chan S. Park

Publisher: Pearson Higher Ed

ISBN:

Category: Business & Economics

Page: 704

View: 142

For Engineering Economics courses, found in departments of Industrial, Civil, Mechanical, and Electrical Engineering. From the author of the best-selling Contemporary Engineering Economics text, Fundamentals of Engineering Economics offers a concise, but in-depth coverage of all fundamental topics of Engineering Economics.
Technology & Engineering

Fundamentals of Engineering Economics and Decision Analysis

Author: David Whitman

Publisher: Morgan & Claypool Publishers

ISBN:

Category: Technology & Engineering

Page: 205

View: 674

The authors cover two general topics: basic engineering economics and risk analysis in this text. Within the topic of engineering economics are discussions on the time value of money and interest relationships. These interest relationships are used to define certain project criteria that are used by engineers and project managers to select the best economic choice among several alternatives. Projects examined will include both income- and service-producing investments. The effects of escalation, inflation, and taxes on the economic analysis of alternatives are discussed. Risk analysis incorporates the concepts of probability and statistics in the evaluation of alternatives. This allows management to determine the probability of success or failure of the project. Two types of sensitivity analyses are presented. The first is referred to as the range approach while the second uses probabilistic concepts to determine a measure of the risk involved. The authors have designed the text to assist individuals to prepare to successfully complete the economics portions of the Fundamentals of Engineering Exam. Table of Contents: Introduction / Interest and the Time Value of Money / Project Evaluation Methods / Service Producing Investments / Income Producing Investments / Determination of Project Cash Flow / Financial Leverage / Basic Statistics and Probability / Sensitivity Analysis

Fundamentals of Engineering Economics, Global Edition

Author: CHAN S. PARK

Publisher:

ISBN:

Category:

Page: 736

View: 844

For introductory engineering economics courses. Relate engineering economics to students' everyday lives for theoretical and conceptual understanding Chan Park, author of the best-selling Contemporary Engineering Economics, tells the story of engineering economy with the more concise Fundamentals of Engineering Economics by relating concepts from class to students' everyday lives. This book provides sound and comprehensive coverage of course concepts while addressing both the theoretical and the practical concerns of engineering economics. Written to appeal to a wide range of engineering disciplines, the text helps students build skills in making informed financial decisions and incorporates all critical decision-making tools, including the most contemporary, computer-oriented ones. MyLab(tm) Engineering is not included. Students, if MyLab Engineering is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN. MyLab Engineering should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information. Reach every student by pairing this text with MyLab Engineering MyLab(tm) is the teaching and learning platform that empowers you to reach every student. By combining trusted author content with digital tools and a flexible platform, MyLab personalizes the learning experience and improves results for each student.
Technology & Engineering

Fundamentals of Engineering Economic Analysis

Author: John A. White

Publisher: Wiley Global Education

ISBN:

Category: Technology & Engineering

Page: 624

View: 634

Fundamentals of Engineering Economics, 1st Edition provides streamlined topical coverage with a modern and pedagogically-rich presentation.ÊThis text features a tight integration of Excel along with a wealth of real world vignettes to reinforce how students will use economics in their future careers. Fundamentals of Engineering Economics, 1st Edition provides enough content for every instructor to choose his/her favorite topics, but is streamlined enough to feel approachable to students. A pedagogically-rich approach combined with strongÊdigitalÊofferings make the course manageable, leaving students with the Engineering Economics knowledge needed for future careers.
Business & Economics

Fundamentals of Engineering Economics

Author: Kal Renganathan Sharma

Publisher: Cognella Academic Pub

ISBN:

Category: Business & Economics

Page: 254

View: 810

In today's rapidly changing global economy, business managers must have the tools and know-how to quickly evaluate the economic viability of potential solutions to engineering problems. An entire field of study has evolved to meet this need, yet there are few straightforward texts that outline the basics of engineering economics. "Fundamentals of Engineering Economics" is an accessible, comprehensive guide to the fundamental principles, concepts, and methods of engineering economics. Utilizing detailed case studies and exercises reflecting current trends and issues in economics, this book introduces students to a variety of key concepts, including estimation of the time value of money, evaluation of a single project, decision analysis, depreciation and taxes. This is an ideal textbook for Economic Analysis and Technical Applications students, or anyone seeking to gain an understanding of the core concepts of engineering economics. "Fundamentals of Engineering Economics" is organized into the following topical chapters: - Overview of Engineering Economy - Fixed and Variable Costs - Time Worth of Money - Five Methods for Evaluation of Capital Project - Comparison of Alternates and Decision Analysis - Depreciation and Replacement Analysis - Taxes, Tariffs, and Duties - Public Sector Initiatives and Benefit-to-Cost Ratio - Break-Even Analysis and Spider Plots Kal Renganathan Sharma serves as Adjunct Professor of Chemical Engineering at the Roy G. Perry College of Engineering at Prairie View A&M University. He received his B.Tech. from the Indian Institute of Technology (1985, Chennai, India) and his MS and Ph.D degrees from West Virginia University (1987, 1990, Morgantown, WV). All three degrees are in chemical engineering. Dr. Sharma is the author of 10 books, 4 book chapters, 21 journal articles, 528 conference papers and 108 other presentations. He is the recipient of several prestigious honors and awards, including the Outstanding Student of the Penultimate Year from the Rev. Brothers of St. Gabriel at RSK Higher Secondary School (Trichy, India) and an Honorary Fellowship from the Australian Institute of High Energetic Materials (Melbourne, Australia).
Architecture

Fundamentals of Engineering

Author: Donald G. Newnan

Publisher: Kaplan AEC Engineering

ISBN:

Category: Architecture

Page: 717

View: 272

Fundamentals of Engineering: FE Exam Preparation provides an in-depth review of the fundamentals for the morning portion and the general afternoon portion of the FE exam. Each chapter is written by an expert in the field. This is the core textbook.