Includes index.

Chapter 1: Foundations of Engineering Economy -- Learning Stage 1: The Fundamentals -- The Fundamentals -- Chapter 1 Introduction -- Why Engineering Economy and the Time Value of Money are Important -- Performing an Engineering Economy Study -- Professional Ethics and Economic Decisions -- Interest Rate and Rate of Return -- Terminology and Symbols -- Cash Flows: Estimation and Diagramming -- Economic Equivalence -- Simple and Compound Interest -- Minimum Attractive Rate of Return and Weighted Average Cost of Capital -- Introduction to Spreadsheet Use -- Using Engineering Economy Tools in Your Spending and Investment Decision Making -- Chapter Summary -- Problems -- Basic Concepts -- Ethics -- Interest Rate and Rate of Return -- Terminology and Symbols -- Cash Flows -- Equivalence -- Simple and Compound Interest -- MARR and WACC -- Personal Finances -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Cost of Electricity Including Wind-Sourced Generation -- Case Study—Years of Poor Ethical Practice Can Lead to a Terrible Retirement -- Chapter 2: Factors: How Time and Interest Affect Money -- Chapter 2 Introduction -- Single-Amount Factors (F/P and P/F) -- Uniform Series Present Worth Factor and Capital Recovery Factor (P/A and A/P) -- Sinking Fund Factor and Uniform Series Compound Amount Factor (A/F and F/A) -- Factor Values for Untabulated i or n Values -- Arithmetic Gradient Factors (P/G and A/G) -- Geometric Gradient Series Factors -- Determining i or n for Known Cash Flow Values -- Single Amounts—P and F Only -- Uniform Series—A Series -- Mixed A Series, Gradients, and/or Isolated Values -- Chapter Summary -- Problems -- Use of Interest Tables -- Determination of F, P, and A -- Factor Values -- Arithmetic Gradient -- Geometric Gradient -- Interest Rate and Rate of Return -- Number of Years -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—The Amazing Impact of Compound Interest -- Chapter 3: Combining Factors and Spreadsheet Functions -- Chapter 3 Introduction -- Calculations for Uniform Series That Are Shifted -- Calculations Involving Uniform Series and Randomly Placed Single Amounts -- Calculations for Shifted Gradients -- Chapter Summary -- Problems -- Present Worth Calculations -- Annual Worth Calculations -- Future Worth Calculations -- Random Single Amounts and Uniform Series -- Shifted Gradients -- Shifted Decreasing Gradients -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Preserving Land for Public Use -- Case Study—Preserving Land for Public Use -- Chapter 4: Nominal and Effective Interest Rates -- Chapter 4 Introduction -- Nominal and Effective Interest Rate Statements -- Effective Annual Interest Rates -- Effective Interest Rates for Any Time Period -- Equivalence Relations: Payment Period and Compounding Period -- Equivalence Relations: Single Amounts with PP ≥ CP -- Equivalence Relations: Series with PP ≥ CP -- Equivalence Relations: Single Amounts and Series with PP < CP -- Effective Interest Rate for Continuous Compounding -- Interest Rates That Vary Over Time -- Chapter Summary -- Problems -- Nominal and Effective Rates -- Equivalence When PP ≥ CP -- Equivalence When PP < CP -- Continuous Compounding -- Varying Interest Rates -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Is Owning a Home a Net Gain or Net Loss Over Time? -- Case Study—Is Owning a Home a Net Gain or Net Loss Over Time? -- Chapter 5: Analysis Using Present Worth and Future Worth Values -- Learning Stage 2: Basic Analysis Tools -- Basic Analysis Tools -- Chapter 5 Introduction -- Formulating Alternatives -- Present Worth Analysis of Equal-Life Alternatives -- Present Worth Analysis of Different-Life Alternatives -- Future Worth Analysis -- Capitalized Cost Analysis -- Chapter Summary -- Problems -- Types of Projects -- Alternative Comparison—Equal Lives -- Alternative Comparison—Different Lives -- Future Worth Comparison -- Capitalized Cost -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Comparing Social Security Benefits -- Case Study—Comparing Social Security Benefits -- Chapter 6: Annual Worth Analysis -- Chapter 6 Introduction -- Advantages and Uses of Annual Worth Analysis -- Calculation of Capital Recovery and AW Values -- Evaluating Alternatives by Annual Worth Analysis -- AW of a Permanent Investment -- Life-Cycle Cost Analysis -- Chapter Summary -- Problems -- Annual Worth and Capital Recovery Calculations -- Alternative Comparison -- Permanent Investments -- Life Cycle Cost -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Annual Worth Analysis: How Changes Can Affect Decisions -- Case Study—Annual Worth Analysis: How Changes Can Affect Decisions -- Chapter 7: Rate of Return Analysis: One Project -- Chapter 7 Introduction -- Interpretation of a Rate of Return Value -- Rate of Return Calculation Using a PW or AW Relation -- Special Considerations When Using the ROR Method -- Multiple Rate of Return Values -- Techniques to Remove Multiple Rates of Return -- Modified ROR Approach -- Rate of Return of a Bond Investment -- Chapter Summary -- Problems -- Understanding ROR -- Determination of ROR -- Multiple ROR Values -- Removing Multiple i* Values -- Bonds -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Developing and Selling an Innovative Idea -- Case Study—Developing and Selling an Innovative Idea -- Chapter 8: Rate of Return Analysis: Multiple Alternatives -- Chapter 8 Introduction -- Why Incremental Analysis Is Necessary -- Calculation of Incremental Cash Flows for ROR Analysis -- Interpretation of Rate of Return on the Extra Investment -- Rate of Return Evaluation Using PW: Incremental and Breakeven (Two Alternatives) -- Rate of Return Evaluation Using AW -- Incremental ROR Analysis of Multiple (More than Two) Alternatives -- All-in-One Spreadsheet Analysis -- Chapter Summary -- Problems -- Understanding Incremental ROR Values -- Incremental ROR Comparison (Two Alternatives) -- Multiple Alternative (More than Two) Evaluation -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Performing ROR Analysis for 3D Printing and IIoT Technology -- Case Study—How a New Engineering Graduate Can Help a Parent -- Case Study—How a New Engineering Graduate Can Help a Parent -- Chapter 9: Benefit/Cost Analysis and Public Sector Economics -- Chapter 9 Introduction -- Public Sector Projects -- Benefit/Cost Analysis of a Single Project -- Incremental B/C Analysis (Two Alternatives) -- Incremental B/C Analysis of Multiple (More than Two) Alternatives -- Service Sector Projects and Cost-Effectiveness Analysis -- Ethical Considerations in the Public Sector -- Chapter Summary -- Problems -- Understanding B/C Concepts -- Project B/C Value -- Two-Alternative Comparison -- Multiple (More than Two) Alternatives -- Cost-Effectiveness Analysis -- Public Sector Ethics -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Highway Lighting Options to Reduce Traffic Accidents -- Case Study—Highway Lighting Options to Reduce Traffic Accidents -- Learning Stage 2: Epilogue -- Selecting the Basic Analysis Tool -- Chapter 10: Project Financing and Noneconomic Attributes -- Learning Stage 3: Making Better Decisions -- Making Better Decisions -- Chapter 10 Introduction -- MARR Relation to the Cost of Capital -- Debt-Equity Mix and Weighted Average Cost of Capital -- Determination of the Cost of Debt Capital -- Determination of the Cost of Equity Capital and the MARR -- Effect of Debt-Equity Mix on Investment Risk -- Multiple Attribute Analysis: An Introduction -- Evaluation Measure for Multiple Attributes -- Chapter Summary -- Problems -- Working with MARR -- D-E Mix and WACC -- Cost of Debt Capital -- Cost of Equity Capital -- Different D-E Mixes -- Multiple, Noneconomic Attributes -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Expanding a Business—Debt vs. Equity Financing? -- Case Study—Expanding a Business—Debt vs. Equity Financing? -- Chapter 11: Replacement and Retention Decisions -- Chapter 11 Introduction -- Basics of a Replacement Study -- Economic Service Life -- Replacement Study: Overview and Preliminary Considerations -- Performing a Replacement Study with No Study Period Specified -- Replacement Study with a Specified Study Period -- Replacement Value -- Chapter Summary -- Problems -- Foundations of Replacement -- Economic Service Life -- Replacement Study: Overview and No Study Period Specified -- Replacement Study with a Specified Study Period -- Replacement Value -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—A Pumper System with an ESL Problem -- Case Study—A Pumper System with an ESL Problem -- Chapter 12: Independent Projects with Budget Limitation -- Chapter 12 Introduction -- Overview and Limitations of Project Budget -- Budget Constraints and Resource Allocation Methods -- General Formulation for Independent Projects with Budget Limitation -- Solution for Multiple Projects under Budget Limitation -- Chapter Summary -- Problems -- Independent Projects with Budget Limitation -- Resource Allocation Methods -- Formulation for Multiple Projects with Budget Limitation -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—The Effect of Budget Constraints on Green Buildings and LEED Systems -- Case Study—The Effect of Budget Constraints on Green Buildings and LEED Systems -- Chapter 13: Breakeven Analysis and Sensitivity Analysis -- Chapter 13 Introduction -- Breakeven Analysis Overview -- Breakeven Analysis for a Single Alternative -- Breakeven Analysis for Multiple Alternatives -- Sensitivity Analysis and Range Analysis -- Chapter Summary -- Problems -- Understanding Breakeven Analysis -- Breakeven Analysis: One Alternative -- Breakeven Analysis for Multiple Alternatives -- Sensitivity Analysis -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Retailer Analysis for Store Locations -- Case Study—Retailer Analysis for Store Locations -- Chapter 14: Sensitivity and Scenario Analysis -- Chapter 14 Introduction -- Basics of Sensitivity Analysis -- Sensitivity Analysis: One Factor with a Fixed Relationship to Others -- Sensitivity Analysis: Multiple Factors with a Fixed Relationship to Others -- Scenario Analysis: Graphical and Spreadsheet Techniques -- Chapter Summary -- Problems -- Sensitivity Analysis -- Scenario Analysis -- Exercises for Spreadsheets -- Additional Problems and FE Exam Review Questions -- Case Study—Retailer Analysis for Location Selection -- Case Study—Retailer Analysis for Location Selection