Park, Chan S. creator text bibliography nju Upper Saddle River, N.J Pearson 2013 3rd ed. monographic eng

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xvii, 674 p. : ill. ; 26 cm. Machine generated contents note: pt. 1 UNDERSTANDING MONEY AND ITS MANAGEMENT -- ch. 1 Engineering Economic Decisions -- 1.1. The Rational Decision-Making Process -- 1.1.1. How Do We Make Typical Personal Decisions? -- 1.1.2. How Do We Approach an Engineering Design Problem? -- 1.1.3. What Makes Economic Decisions Different from Other Design Decisions? -- 1.2. The Engineer's Role in Business -- 1.2.1. Making Capital-Expenditure Decisions -- 1.2.2. Large-Scale Engineering Economic Decisions -- 1.2.3. Impact of Engineering Projects on Financial Statements -- 1.3. Types of Strategic Engineering Economic Decisions -- 1.3.1. New Products or Product Expansion -- 1.3.2. Equipment and Process Selection -- 1.3.3. Cost Reduction -- 1.3.4. Equipment Replacement -- 1.3.5. Service or Quality Improvement -- 1.4. Fundamental Principles in Engineering Economics -- Summary -- Self-Test Questions -- Problems -- ch. 2 Time Value of Money -- 2.1. Interest: The Cost of Money -- 2.1.1. The Time Value of Money -- 2.1.2. Elements of Transactions Involving Interest -- 2.1.3. Methods of Calculating Interest -- 2.2. Economic Equivalence -- 2.2.1. Definition and Simple Calculations -- 2.2.2. Equivalence Calculations Require a Common Time Basis for Comparison -- 2.3. Interest Formulas for Single Cash Flows -- 2.3.1.Compound-Amount Factor -- 2.3.2. Present-Worth Factor -- 2.3.3. Solving for Time and Interest Rates -- 2.4. Uneven-Payment Series -- 2.5. Equal-Payment Series -- 2.5.1.Compound-Amount Factor: Find F, Given A, i, and N -- 2.5.2. Sinking-Fund Factor: Find A, Given F, i, and N -- 2.5.3. Capital-Recovery Factor (Annuity Factor): Find A, Given P, i, and N -- 2.5.4. Present-Worth Factor: Find P, Given A, i, and N -- 2.5.5. Present Value of Perpetuities -- 2.6. Dealing with Gradient Series -- 2.6.1. Handling Linear Gradient Series -- 2.6.2. Handling Geometric Gradient Series -- 2.7. More on Equivalence Calculations -- Summary -- Self-Test Questions -- Problems -- ch. 3 Understanding Money Management -- 3.1. Market Interest Rates -- 3.1.1. Nominal Interest Rates -- 3.1.2. Annual Effective Yields -- 3.2. Calculating Effective Interest Rates Based on Payment Periods -- 3.2.1. Discrete Compounding -- 3.2.2. Continuous Compounding -- 3.3. Equivalence Calculations with Effective Interest Rates -- 3.3.1.Compounding Period Equal to Payment Period -- 3.3.2.Compounding Occurs at a Different Rate than That at Which Payments are Made -- 3.4. Debt Management -- 3.4.1. Borrowing with Credit Cards -- 3.4.2.Commercial Loans -- Calculating Principal and Interest Payments -- 3.4.3.Comparing Different Financing Options -- Summary -- Self-Test Questions -- Problems -- ch. 4 Equivalence Calculations under Inflation -- 4.1. Measure of Inflation -- 4.1.1. Consumer Price Index -- 4.1.2. Producer Price Index -- 4.1.3. Average Inflation Rate -- 4.1.4. General Inflation Rate (f) versus Specific Inflation (fj) -- 4.2. Actual versus Constant Dollars -- 4.2.1. Conversion from Constant to Actual Dollars -- 4.2.2. Conversion from Actual to Constant Dollars -- 4.3. Equivalence Calculations under Inflation -- 4.3.1. Market and Inflation-Free Interest Rates -- 4.3.2. Constant-Dollar Analysis -- 4.3.3. Actual-Dollar Analysis -- 4.3.4. Mixed-Dollar Analysis -- Summary -- Self-Test Questions -- Problems -- pt. 2 EVALUATING BUSINESS AND ENGINEERING ASSETS -- ch. 5 Present-Worth Analysis -- 5.1. Loan versus Project Cash Flows -- 5.2. Initial Project Screening Methods -- 5.2.1. Benefits and Flaws of Payback Screening -- 5.2.2. Discounted-Payback Period -- 5.3. Present-Worth Analysis -- 5.3.1.Net-Present-Worth Criterion -- 5.3.2. Guidelines for Selecting a MARR -- 5.3.3. Meaning of Net Present Worth -- 5.3.4.Net Future Worth and Project Balance Diagram -- 5.3.5. Capitalized-Equivalent Method -- 5.4. Methods to Compare Mutually Exclusive Alternatives -- 5.4.1. Doing Nothing Is a Decision Option -- 5.4.2. Service Projects versus Revenue Projects -- 5.4.3. Analysis Period Equals Project Lives -- 5.4.4. Analysis Period Differs from Project Lives -- Summary -- Self-Test Questions -- Problems -- ch. 6 Annual-Equivalence Analysis -- 6.1. Annual-Equivalent Worth Criterion -- 6.1.1. Benefits of AE Analysis -- 6.1.2. Capital (Ownership) Costs versus Operating Costs -- 6.2. Applying Annual-Worth Analysis -- 6.2.1. Unit-Profit or Unit-Cost Calculation -- 6.2.2. Make-or-Buy Decision -- 6.3.Comparing Mutually Exclusive Projects -- 6.3.1. Analysis Period Equals Project Lives -- 6.3.2. Analysis Period Differs from Project Lives -- Summary -- Self-Test Questions -- Problems -- ch. 7 Rate-of-Return Analysis -- 7.1. Rate of Return -- 7.1.1. Return on Investment -- 7.1.2. Return on Invested Capital -- 7.2. Methods for Finding Rate of Return -- 7.2.1. Simple versus Nonsimple Investments -- 7.2.2.Computational Methods -- 7.3. Internal-Rate-of-Return Criterion -- 7.3.1. Relationship to the PW Analysis -- 7.3.2. Decision Rule for Simple Investments -- 7.3.3. Decision Rule for Nonsimple Investments -- 7.4. Incremental Analysis for Comparing Mutually Exclusive Alternatives -- 7.4.1. Flaws in Project Ranking by IRR -- 7.4.2. Incremental-Investment Analysis -- 7.4.3. Handling Unequal Service Lives -- Summary -- Self-Test Questions -- Problems -- ch. 7A Resolution of Multiple Rates of Return -- 7A-1.Net-Investment Test -- 7A-2. The Need for an External Interest Rate -- 7A-3. Calculation of Return on Invested Capital for Mixed Investments -- ch. 8 Benefit-Cost Analysis -- 8.1. Evaluation of Public Projects -- 8.1.1. Valuation of Benefits and Costs -- 8.1.2. Users' Benefits -- 8.1.3. Sponsor's Costs -- 8.1.4. Social Discount Rate -- 8.2. Benefit-Cost Analysis -- 8.2.1. Definition of Benefit-Cost Ratio -- 8.2.2. Incremental B/C-Ratio Analysis -- 8.3. Profitability Index -- 8.3.1. Definition of Profitability Index -- 8.3.2. Incremental PI Ratio for Mutually Exclusive Alternatives -- 8.4. Highway Benefit-Cost Analysis -- 8.4.1. Define the Base Case and the Proposed Alternatives -- 8.4.2. Highway User Benefits -- 8.4.3. Sponsors' Costs -- 8.4.4. Illustrating Case Example -- Summary -- Self-Test Questions -- Problems -- pt. 3 DEVELOPMENT OF PROJECT CASH FLOWS -- ch. 9 Accounting for Depreciation and Income Taxes -- 9.1. Accounting Depreciation -- 9.1.1. Depreciable Property -- 9.1.2. Cost Basis -- 9.1.3. Useful Life and Salvage Value -- 9.1.4. Depreciation Methods: Book and Tax Depreciation -- 9.2. Book Depreciation Methods -- 9.2.1. Straight-Line Method -- 9.2.2. Declining-Balance Method -- 9.2.3. Units-of-Production Method -- 9.3. Tax Depreciation Methods -- 9.3.1. MACRS Recovery Periods -- 9.3.2. MACRS Depreciation: Personal Property -- 9.3.3. MACRS Depreciation: Real Property -- 9.4. Corporate Taxes -- 9.4.1. How to Determine "Accounting Profit" -- 9.4.2.U.S. Corporate Income Tax Rates -- 9.4.3. Gain Taxes on Asset Disposals -- Summary -- Self-Test Questions -- Problems -- ch. 10 Project Cash-Flow Analysis -- 10.1. Understanding Project Cost Elements -- 10.1.1. Classifying Costs for Manufacturing Environments -- 10.1.2. Classifying Costs for Financial Statements -- 10.1.3. Classifying Costs for Predicting Cost Behavior -- 10.2. Why Do We Need to Use Cash Flows in Economic Analysis? -- 10.3. Income-Tax Rate to Be Used in Project Evaluation -- 10.4. Incremental Cash Flows from Undertaking a Project -- 10.4.1. Operating Activities -- 10.4.2. Investing Activities -- 10.4.3. Financing Activities -- 10.5. Developing Project Cash Flow Statements -- 10.5.1. When Projects Require Only Operating and Investing Activities -- 10.5.2. When Projects Are Financed with Borrowed Funds -- 10.6. Effects of Inflation on Project Cash Flows -- 10.6.1. Depreciation Allowance under Inflation -- 10.6.2. Handling Multiple Inflation Rates -- Summary -- Self-Test Questions -- Problems -- ch. 11 Handling Project Uncertainty -- 11.1. Origins of Project Risk -- 11.2. Methods of Describing Project Risk -- 11.2.1. Sensitivity Analysis -- 11.2.2. Sensitivity Analysis for Mutually Exclusive Alternatives -- 11.2.3. Break-Even Analysis -- 11.2.4. Scenario Analysis -- 11.3. Probabilistic Cash Flow Analysis -- 11.3.1. Including Risk in Investment Evaluation -- 11.3.2. Aggregating Risk over Time -- 11.3.3. Estimating Risky Cash Flows -- 11.4. Considering the Project Risk by Discount Rate -- 11.4.1. Determining the Company Cost of Capital -- 11.4.2. Project Cost of Capital: Risk-Adjusted Discount Rate Approach -- Summary -- Self-Test Questions -- Problems -- pt. 4 SPECIAL TOPICS IN ENGINEERING ECONOMICS -- ch. 12 Replacement Decisions -- 12.1. Replacement-Analysis Fundamentals -- 12.1.1. Basic Concepts and Terminology -- 12.1.2. Approaches for Comparing Defender and Challenger -- 12.2. Economic Service Life -- 12.3. Replacement Analysis When the Required Service Period Is Long -- 12.3.1. Required Assumptions and Decision Frameworks -- 12.3.2. Handling Unequal Service Life Problems in Replacement Analysis -- 12.3.3. Replacement Strategies under the Infinite Planning Horizon -- 12.4. Replacement Analysis with Tax Considerations -- Summary -- Self-Test Questions -- Problems -- ch. 13 Understanding Financial Statements -- 13.1. Accounting: The Basis of Decision Making -- 13.2. Financial Status for Businesses -- 13.2.1. The Balance Sheet -- 13.2.2. The Income Statement -- 13.2.3. The Cash-Flow Statement -- 13.3. Using Ratios to Make Business Decisions -- 13.3.1. Debt Management Analysis -- 13.3.2. Liquidity Analysis -- 13.3.3. Asset Management Analysis -- 13.3.4. Profitability Analysis -- 13.3.5. Market-Value Analysis -- 13.3.6. Limitations of Financial Ratios in Business Decisions -- 13.3.7. Where We Get the Most Up-to-Date Financial Information -- 13.4. Principle of Investing in Financial Assets -- 13.4.1. Trade-Off between Risk and Reward -- 13.4.2. Broader Diversification Reduces Risk -- 13.4.3. Broader Diversification Increases Expected Return -- Summary -- Self-Test Questions -- Problems Chan S. Park Includes bibliographical references and index Engineering economy 9780132775427 0132775425 UMP 150413 20251125093626.0 vtls000085643