Describes important and useful project evaluation and selection concepts and techniques that have developed over the past twenty years. These concepts and techniques--essential in making individual, corporate and public investment decisions--are presented in an integrated framework based upon traditional engineering economics principles. Four main sections--Basic Concepts and Techniques in Economics Analysis, Deterministic Analysis, Stochastic Analysis, Special Topics--cover a wide variety of subjects, including: accounting income, interest, inflation, the use of tranforms in cash-flow modeling, depreciation and corporate taxation, investment worth, utility theory, decision tree analysis and much more. A number of analysis techniques for public investments are described and decision rules for selecting among multiple alternatives are given. Features numerous case studies, illustrative examples, tables and end-of-chapter questions.
BASIC CONCEPTS AND TECHNIQUES IN ECONOMIC ANALYSIS.
Accounting Income and Cash Flow.
Interest and Equivalence.
Transform Techniques in Cash Flow Modeling.
Depreciation and Corporate Taxation.
Selecting a Minimum Attractive Rate of Return.
Measures of Investment Worth--Single Project.
Decision Rules for Selecting Among Multiple Alternatives.
Deterministic Capital Budgeting Models.
Measures of Investment Worth Under Risk--Single Project.
Methods for Comparing Risky Projects.
Decision Tree Analysis.
SPECIAL TOPICS IN ENGINEERING ECONOMIC ANALYSIS.
Evaluation of Public Investments.
Economic Analysis in Public Utilities.
Procedures for Replacement Analysis.