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

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Basics of Engineering Economy, provides undergraduate students and practicing professionals with a solid preparation in the financial understanding of engineering problems and projects, as well as the techniques needed for evaluating and making sound economic 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 problems 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. Graphical 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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  • 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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