Engineering Economic Analysis: Canadian Edition by Donald G. Newnan

Engineering Economic Analysis: Canadian Edition

byDonald G. Newnan, John Whittaker, Ted G. Eschenbach

Hardcover | October 22, 2013

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a href=""img src="/images/hed/closer_look_btn.gif"/aPraised for its accessible tone and extensive problem sets, this trusted text familiarizes students with the universal principles of engineering economics. This essential introduction features a wealth of specific Canadian examples and has been fully updated with new coverage of technology,sustainability, and environmental stewardship, as well as new case studies and problems.

About The Author

John Whittaker is professor emeritus in the Department of Mechanical Engineering at the University of Alberta. In addition to his work at the university, he has also worked as a consultant in the areas of engineering economy, risk analysis, industrial productivity, high-tech entrepreneurship, and cross-cultural training. Donald G....

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Title:Engineering Economic Analysis: Canadian EditionFormat:HardcoverDimensions:672 pages, 10 × 8 × 0.92 inPublished:October 22, 2013Publisher:Oxford University PressLanguage:English

The following ISBNs are associated with this title:

ISBN - 10:0195447549

ISBN - 13:9780195447545

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Table of Contents

PrefaceAcknowledgements1. Making Economic DecisionsA Sea of ProblemsThe Role of Engineering Economic AnalysisThe Decision-Making ProcessEthicsEngineering Decision Making for Current Costs2. Engineering Costs and Cost EstimatingEngineering CostsCost-EstimatingEstimating ModelsEstimating BenefitsCash Flow Diagrams3. Interest and EquivalenceComputing Cash FlowsTime Value of MoneyEquivalenceSingle Payment Compound-Interest FormulasNominal and Effective InterestContinuous Compounding4. Equivalence for Repeated Cash FlowsUniform Series Compound Interest FormulasExpanded Factors as Calculator FunctionsCash Flows that Do Not Match Basic PatternsEconomic Equivalence Viewed as a Moment DiagramRelationships between Compound Interest FactorsArithmetic GradientReality and the Assumed Uniformity of A, G, and gGeometric GradientCompounding Period and Payment Period DifferSpreadsheets for Economic Analysis5. Present Worth AnalysisAssumptions in Solving Economic Analysis ProblemsEconomic CriteriaApplying Present Worth TechniquesBond PricingSpreadsheets and Present Worth6. Annual Cash Flow AnalysisAnnual Cash Flow CalculationsAnnual Cash Flow AnalysisAnalysis PeriodUsing Spreadsheets to Analyze LoansMortgages in Canada7. Rate of Return AnalysisInternal Rate of ReturnCalculating Rate of ReturnInterest Rates When There Are Fees or DiscountsLoans and Investments Are EverywhereIncremental AnalysisSpreadsheets and Rate of Return AnalysisAppendix 7A: Difficulties in Solving for an Interest RateWhy Multiple Solutions Can OccurProjects with Multiple Sign ChangesEvaluating How Many Roots There AreModified Internal Rate of Return (MIRR)8. Choosing the Best AlternativeIncremental AnalysisGraphical SolutionsElements in Incremental Rate of Return AnalysisChoosing an Analysis MethodSpreadsheets and GOAL SEEK9. Other Analysis TechniquesFuture Worth AnalysisBenefit-Cost Ratio AnalysisPayback PeriodSensitivity and Break-Even AnalysisGraphing with Spreadsheets for Sensitivity and Break-Even AnalysisDoing What-If Analysis with Spreadsheets10. Uncertainty in Future EventsEstimates and Their Use in Economic AnalysisA Range of EstimatesProbabilityJoint Probability DistributionsExpected ValueEconomic Decision TreesRiskRisk versus ReturnSimulationReal Options11. Income, Depreciation, and Cash FlowIncomeBasic Aspects of DepreciationDepreciation MethodsUnit-of-Production DepreciationDepreciation for Tax Purposes - Capital Cost AllowanceCalculating the CCA and the UCC (without Using Schedule 8)Depreciation and Asset DisposalNatural Resource AllowancesSpreadsheets and Depreciation12. After-Tax Cash FlowsA Partner in the BusinessCalculation of Taxable IncomeCorporate Income TaxesAccounting and Engineering EconomyCapital Tax Factors and Books OpenCalculating After-Tax Present WorthWorking Capital RequirementsLoan FinancingEstimating the After-Tax Rate of Return13. Replacement AnalysisThe Replacement ProblemReplacement Analysis Decision MapMinimum Cost Life of a New Asset - the ChallengerDefender's Marginal Cost DataReplacement Analysis Technique 1: Defender Marginal Costs Can Be Computed and Are IncreasingReplacement Repeatability AssumptionsReplacement Analysis Technique 2: Defender Marginal Cost Can Be Computed and Is Not IncreasingReplacement Analysis Technique 3: When Defender Marginal Cost Data Are Not AvailableComplications in Replacement AnalysisRepeatability Assumptions Not AcceptableAfter-Tax Replacement AnalysisSpreadsheets and Replacement Analysis14. Inflation and Price ChangeMeaning and Effect of InflationAnalysis in Constant Dollars versus Then-Current DollarsPrice Change with IndexesCash Flows That Inflate at Different RatesDifferent Inflation Rates per PeriodEffect of Inflation on After-Tax CalculationsUsing Spreadsheets for Inflation Calculations15. Selection of a Minimum Attractive Rate of ReturnSources of CapitalCost of FundsInvestment OpportunitiesSelecting a Minimum Attractive Rate of ReturnAdjusting MARR to Account for Risk and UncertaintyRepresentative Values of MARR Used in Industry16. Economic Analysis in the Public SectorInvestment ObjectiveViewpoint for AnalysisSelecting an Interest RateThe Benefit-Cost RatioIncremental Benefit-Cost AnalysisOther Effects of Public Projects17. Accounting and Engineering EconomyThe Role of AccountingThe Balance SheetThe Income StatementTraditional Cost AccountingAppendix A: Introduction to Spreadsheets- The Elements of a Spreadsheet- Defining Variables in a Data Block- Copy CommandAppendix B: Time Value of Money (TVM) Calculators- Advantages and Types of TVM Calculators- Notation for TVM Calculators- Examples with TVM Calculators and Tabulated FactorsAppendix C: Compound Interest TablesGlossaryReferencesIndexNote: Each chapter includes:- Summary- Problems