Engineering Economic Principles

Engineering Economic Principles

by Henry Malcolm Steiner

Hardcover

$0.00

Product Details

ISBN-13: 9780070612563
Publisher: McGraw-Hill Companies, The
Publication date: 01/01/1996
Product dimensions: 6.50(w) x 1.50(h) x 9.50(d)

Table of Contents

Preface to the First Edition xi
Preface to the Second Edition xv
Introduction: Investments Explained
1(12)
Mutually Exclusive Investments
3(1)
Mutually Independent Investments
4(1)
Interdependent Investments
4(1)
Private Investments
4(1)
Public Investments
5(1)
Externalities
6(1)
Social Benefits and Costs
7(1)
Opportunity Cost
7(1)
Cost of Capital
8(1)
Income Tax
9(1)
Inflation
9(1)
Problems
10(3)
Investment Choice
13(20)
Decision Criteria
13(1)
Decision Procedure
14(2)
Recognition of Alternatives
16(1)
Consequences of Alternatives over Time
17(1)
Viewpoint
18(1)
Systems Analysis
19(1)
Time Horizons and Equal Service Lives
20(1)
Differential Consequences
21(1)
With/Without Criterion
22(1)
A Common Unit of Measurement
22(1)
Sunk Cost
23(1)
Depreciation
24(1)
Incremental Analysis
25(1)
Analysis: The Accountant's and the Manager's
26(1)
Problems
27(6)
Equivalence
33(6)
Equivalence at 0 Percent Interest Rate
33(1)
Equivalence at 10 Percent Interest Rate
34(2)
Problems
36(3)
Interest and Financial Mathematics
39(30)
Money Has a Double Value
41(2)
Graphical Conventions
43(1)
Formulas
44(5)
Gradients
49(6)
Rates of Interest: Nominal and Effective
55(2)
Separation of Interest and Principal
57(3)
Problems
60(6)
Appendix 4A: Continuous Compounding
66(3)
Present Worth
69(32)
Present Worth Defined
69(5)
Incremental Analysis versus Individual Analysis
74(2)
Alternatives with Different Lives
76(1)
Salvage Value
77(3)
Deferred Investments
80(1)
Perpetual Investments
81(1)
Capitalized Cost
82(1)
Valuation and Bonds
83(4)
Future Worth
87(1)
Summary
88(1)
Problems
89(12)
Annual Worth
101(18)
Annual-Worth Analysis
102(2)
Annual-Cost Analysis
104(1)
Salvage Value
104(2)
Unequal Lives: The Advantage of Annual Worth
106(2)
Incremental Analysis in Annual Worth
108(2)
Perpetual Lives in Annual Worth
110(1)
Summary
111(1)
Problems
111(8)
Benefit/Cost Ratio
119(24)
Incremental Analysis Necessary
120(2)
Formulas
122(4)
Other Definitions of the B/C Ratio
126(3)
Benefits, Costs, and Disbenefits
129(2)
Equal Initial Investments
131(2)
Zeros in the Ratio
133(1)
Cost-Effectiveness
134(1)
Summary
135(1)
Problems
136(4)
Appendix 7A
140(3)
Internal Rate of Return
143(48)
Formulas
144(1)
Direct Computation of IROR
144(4)
Trial-and-Error Computation of IROR
148(2)
Incremental Analysis Necessary
150(4)
IROR Method Agrees with Present-Worth Method
154(5)
Benefit/Cost Ratio and Present Worth
159(1)
Equal Initial Investments
159(4)
Rate of Return on a Bond
163(1)
Multiple Rates of Return
164(2)
Descartes' Rule of Signs
166(6)
Summary
172(1)
Problems
172(14)
Appendix 8A: The Reinvestment Fallacy
186(3)
Appendix Problems
189(2)
Multiple Alternatives
191(30)
Incremental Analysis of Multiple Alternatives
191(1)
Present Worth: Incremental and Individual
192(5)
Annual Worth: Incremental and Individual
197(3)
Benefit/Cost Ratio: Incremental
200(4)
Internal Rate of Return: Incremental
204(4)
Cost-effectiveness
208(1)
Summary
208(1)
Problems
209(12)
Effect of Income Tax on Economic Analysis
221(46)
Income Tax
222(1)
Tax Brackets
223(1)
Deductions
224(3)
Value: Book and Market
227(1)
Depreciation
227(1)
Depreciation: Modified Accelerated Cost Recovery System
228(6)
Depreciation: ADS Method
234(2)
MACRS Dispositions
236(1)
After-Tax Cash Flow according to MACRS
237(1)
Depreciation: Accelerated Cost Recovery System
238(1)
Pre-1981 Depreciation Methods
238(1)
Depreciation: Straight-Line
239(1)
Depreciation: Declining-Balance
239(2)
Depreciation: Sum-of-the-Years'-Digits
241(1)
After-Tax Cash Flow Using Pre-1981 Straight-Line Depreciation
242(1)
After-Tax Cash Flow Using Double-Declining-Balance Depreciation
243(1)
After-Tax Cash Flow Using the Sum-of-the-Years'-Digits Depreciation
244(1)
Selection of Depreciation Method
245(1)
Lives
246(1)
Capital Gains or Losses on Disposition
247(1)
Investment Tax Credit
248(2)
Alternative Minimum Tax
250(1)
Income Tax in Other Countries
250(1)
Summary
251(1)
References
251(1)
Problems
252(15)
Inflation
267(42)
Price Changes
267(1)
Price Indexes
268(5)
Price Changes in the United States and Other Countries
273(1)
Rates: Constant, Current, and Inflation
274(2)
Mathematics of Inflation
276(4)
Incorporating Inflation in an Economic Decision
280(3)
Variable Inflation Rates
283(8)
Negative Rates
291(1)
Is Inflation Ever Nondifferential?
292(1)
Summary
293(1)
Problems
294(15)
Risk
309(28)
Definitions
309(1)
Probability Measurement
310(1)
Expected Value
311(6)
Objective and Subjective Probabilities
317(2)
Risk Measurement
319(5)
Summary
324(1)
Problems
325(12)
Loans
337(34)
Loan Criteria
339(5)
Unequal-Term Loans
344(5)
Tax Effects
349(1)
Inflation Effects
349(7)
Collateral
356(4)
Summary
360(1)
Problems
360(11)
Capital Budgeting
371(26)
Programming versus Efficiency of Capital Criteria
375(2)
Capital Rationing---Independent Projects Only
377(2)
Capital Rationing---Independent and Mutually Exclusive Projects
379(2)
Capital Rationing---Interdependent Projects
381(3)
Summary
384(1)
Problems
385(12)
Opportunity and Financial Costs of Capital
397(14)
Definitions
397(1)
Personal Cost of Capital
398(1)
Link between the Opportunity Cost of Capital and Capital Budget
399(3)
Financial Cost of Capital in the Private Sector
402(1)
Public Sector Opportunity Cost of Capital
403(3)
Risk and the Cost of Capital
406(1)
Summary
407(1)
Problems
408(3)
Replacement
411(22)
Defenders and Challengers
412(1)
Economic Life
412(1)
Replacement
412(10)
Summary
422(1)
Problems
422(11)
Sector Analysis and Viewpoint
433(16)
How Viewpoint Affects Cash Flows---Transfer Payments
434(2)
Pareto and Kaldor
436(1)
Private Sector Viewpoint
436(1)
Public Sector Viewpoint
437(2)
Cost of Unemployed Resources
439(1)
Shadow Prices
440(2)
Summary
442(1)
Problems
442(7)
Sensitivity Analysis
449(18)
Payback
449(1)
Break-Even Analysis
450(1)
Sensitivity---the Narrow Definition
451(1)
Sensitivity---the Broad Definition
452(1)
Multivariable Sensitivity Analysis
453(7)
Summary
460(1)
Problems
460(7)
Appendix A How to Use a Personal Computer to Solve Problems in Engineering Economics 467(8)
Starting Lotus 1-2-3
468(1)
Getting Our Files
468(1)
Example 5.6
468(1)
Saving a File
469(1)
Example 6.4
469(1)
Example 7.3
470(1)
Example 8.7
470(1)
Example 8.9
471(1)
Example 10.12
471(1)
Example 11.15
471(1)
Example 18.3
471(1)
Capital Budgeting
472(1)
Lotus 1-2-3 Functions
473(2)
Appendix B Notation 475(2)
Appendix C Compound Interest Tables 477(36)
Appendix D Selected Bibliography 513(2)
Index 515

Customer Reviews

Most Helpful Customer Reviews

See All Customer Reviews