Principles of Engineering Economic Analysis, Revised Canadian Edition (Images Only) [rev ed.] 0921332491, 9780921332497

Table of contents :
Principles of Engineering Economic Analysis
Table of Contents
Chapter 1 Introduction
1.1 Background
1.2 The Problem-Solving Process
1.3 Cash Flow
1.4 The Time Value of Money
1.5 Economic Justification May Not Be Enough
1.6 Non-Monetary Considerations
1.7 Overview of the Text
Chapter 2 Cost Concepts and Cost Estimation
2.1 Introduction
2.2 Cost Terminology
2.2.1 Life-Cycle Cost
2.2.2 Past and Sunk Costs
2.2.3 Future and Opportunity Costs
2.2.4 Direct, Indirect and Overhead Costs
2.2.5 Fixed and Variable Costs
2.2.6 Average and Marginal Cost
2.3 Estimation
2.3.1 Project Estimation
2.3.2 General Sources of Data
2.4 Capital Cost Estimation
2.4.1 Price Indexes
2.4.2 Cost-Capacity Relationship
2.5 The Learning Curve
2.6 Standard Costs
2. Problems
Chapter 3 Time Value of Money Operations
3.1 Introduction
3.2 Interest Calculations
3.3 Single Sums of Money
3.4 Series of Cash Flows
3.4.1 Uniform Series of Cash Flows
3.4.2 Gradient Series of Cash Flows
3.4.3 Geometric Series of Cash Flows
Table 3.2 Summary of Discrete Compounding Interest Factors
3.5 Multiple Compounding Periods in a Year
3.6 Continuous Compounding
3.6.1 Discrete Flows
3.6.2 Continuous Flow
3.7 Equivalence
3.8 Loan Payments
3.9 Special Topics
3.9.1 Changing Interest Rates
3.9.2 End-of-Period Cash Flows and End-of-Period Compounding
3.9.3 Perpetuities and Capitalized Value
3.9.4 Bond Problems
3.9.5 Capital Recovery Cost
3.10 Inflationary Effects
3.11 Summary
3. Problems
Chapter 4 Comparison of Alternatives
4.1 Introduction
4.2 Defining Mutually Exclusive Alternatives
4.3 The Planning Period
4.4 Developing Cash Flow Profiles
4.5 Specifying the Time Value of Money
4.6 The Measures of Merit
4.6.1 Present Worth Method
4.6.2 Annual Worth Method
4.6.3 Future Worth Method
4.6.4 Payback Period Method
4.6.5 Rate of Return Method
4.6.6 Savings/lnvestment Ratio Method
4.7 Comparing the Investment Alternatives
4.7.1 Ranking Approaches
4.7.2 Incremental Approaches
4.8 Supplementary Analyses
4.9 Selecting the Preferred Alternative
4.10 Analyzing Alternatives with No Positive Cash Flows
4.11 Classical Method of Dealing with Unequal Lives
4.12 Replacement Analysis
4.12.1 Cash Flow Approach
4.12.2 Classical Approach
4.13 Computer Applications
4.14 Summary
4. Problems
Chapter 5 Depreciation and Income Tax Considerations
5.1 Introduction
5.2 The Meaning of Depreciation
5.3 Factors Used to Determine Depreciation
5.4 Methods of Depreciation
5.4.1 Straight-Line Depreciation
5.4.2 Sum of the Years' Digits Depredation
5.4.3 Declining Balance Depreciation
5.4.4 Capital Cost Allowance
5.4.5 Double Declining Depredation
5.4.6 Sinking Fund Depreciation
5.5 Comparison of Depredation Methods
5.6 Special Provisions for Accelerated Depreciation
5.7 Other Methods of Depreciation
5.7.1 Units of Production Method
5.7.2 Operating Day Method
5.7.3 Income Forecast Method
5.7.4 Multiple-Asset Accounts
5.8 Tax Concepts
5.9 Corporate Income Tax: Business Income
5.9.1 Small Business Tax Credit
5.9.2 Manufacturing and Processing Profits Deduction
5.9.3 Determining Taxable Income
5.10 After-lfex Cash How
5.11 Effect of Depreciation Method
5.12 Effect of Interest on Borrowed Money
5.13 Carry-back and Carry-forward Rules
5.14 Capita! Gains and Losses
5.15 Tax Treatment of Capital Assets
5.16 Recaptured Capital Cost Allowance
5.17 Income Tax Incentives
5.18 Lease-Buy Considerations
5.19 Depletion
5.20 Summary
5. Problems
Chapter 6 Economic Analysis of Projects in the Public Sector
6.1 Introduction
6.2 The Nature of Public Projects
6.3 Objectives in Project Evalution
6.4 Benefit-Cost Analysis
6.5 Important Considerations In Evaluating Public Projects
6.5.1 Point of View
6.5.2 Selection of the Interest Rate
6.5.3 Assessment of Benefit-Cost Factors
6.5.4 Overcounting
6.5.5 Unequal Lives
6.5.6 Tolls, Fees, and User Charges
6.6 Multiple-Use Projects
6.7 Problems with the B/C Ratio
6.8 Cost-Effectiveness Analysis
6.8.1 The Standardized Approach
6.9 Summary
6. Problems
Chapter 7 Break-Even, Sensitivity, and Risk Analyses
7.1 Introduction
7.2 Linear Break-Even Analysis
7.3 Nonlinear Break-Even Analysis
7.4 Sensitivity Analysis
7.5 Risk Analysis
7.5.1 Distributions
7.5.2 Risk Aggregation
7.6 Computer Simulation
7.7 Summary
7. Problems
Chapter 9 Accounting Principles
9.1 Introduction
9.2 Balance Sheet
9.3 Income Statement
9.4 Interpretation of Financial Statements
9.5 Cost Accounting
9. Problems
Appendix A Discrete Compounding
Section I - Discrete Compound Interest Factors
Section II - Geometric Series Factors
Appendix B Continuous Compounding
Section I - Continuous Compounding Interest Factors
Section II - Continuous Compounding, Continuous Flow Interest Factors
Section III - Geometric Series Factors
Appendix C Answers to Even-Numbered Problems
Appendix D Glossary of Technical Terms
Index