دانلود کتاب Principles of engineering economic analysis

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Cover Page Title Page Copyright Page Contents Preface Abouth the Authors Chapter 1: ENGINEERING ECONOMIC ANALYSIS 1.1 Introduction 1.2 Time Value of Money (TVOM) 1.3 Ten Principles of Engineering Economic Analysis 1.4 Systematic Economic Analysis Technique (SEAT) 1.4.1 Identify the Investment Alternatives 1.4.2 Define the Planning Horizon 1.4.3 Specify the Discount Rate 1.4.4 Estimate the Cash Flows 1.4.5 Compare the Alternatives 1.4.6 Perform Supplementary Analyses 1.4.7 Select the Preferred Investment 1.5 When the Time Value of Money Need Not Be Considered 1.6 Summary FE-Like Problems Problems Chapter 2: TIME VALUE OF MONEY 2.1 Introduction 2.2 Cash Flow Diagrams 2.3 Simple Interest Calculations 2.4 Compound Interest Calculations 2.4.1 Single Cash Flows 2.4.2 Multiple Cash Flows 2.4.2.1 Uniform Series of Cash Flows 2.4.2.2 Gradient Series of Cash Flows 2.4.2.3 Geometric Series of Cash Flows 2.5 Multiple Compounding Periods in a Year 2.6 When Compounding and Cash Flow Frequencies Differ 2.7 Special and Limiting Cases of Time Value of Money Factors 2.7.1 Mathematical Relationships 2.7.2 Limiting Cases 2.7.3 Special Cases for n = 1 2.8 Summary 2.A Continuous Compound Interest Calculations 2.A-1 DISCRETE FLOWS 2.A-2 CONTINUOUS FLOW FE-Like Problems Problems Chapter 3: BORROWING, LENDING, AND INVESTING 3.1 Introduction 3.2 Four Methods of Repaying Loans 3.3 Which Payment Plan is Best for the Borrower? 3.4 Real Estate Investment 3.5 Interest Payments and Principal Payments 3.5.1 Immediate Payment Loans 3.5.2 Deferred Payment Loans 3.6 Retirement Planning 3.7 Equivalence and Indifference 3.7.1 Equivalence 3.7.2 Indifference 3.7.3 Applying the Concepts of Equivalence and Indifference 3.8 Purchasing and Selling Bonds 3.9 Variable Interest Rates 3.10 Summary FE-Like Problems Problems Chapter 4: ESTABLISHING THE PLANNING HORIZON AND THE MINIMUM ATTRACTIVE RATE OF RETURN 4.1 Introduction 4.2 Choosing the Planning Horizon 4.3 Specifying the Minimum Attractive Rate of Return 4.3.1 Weighted Average Cost of Capital 4.3.2 Eastman Chemical Company’s Hurdle Rate Calculator 4.4 Summary 4.A Capital Asset Pricing Model FE-Like Problems Problems Chapter 5: PRESENT WORTH ANALYSIS 5.1 Introduction 5.2 Comparing Alternatives 5.2.1 Measures of Economic Worth 5.2.2 Ranking and Incremental Methods of Economic Worth 5.2.3 Before-Tax or After-Tax Analysis? 5.2.4 Equal or Unequal Lives? 5.2.5 A Single Alternative 5.3 Present Worth: Single Alternative 5.4 Present Worth: Multiple Alternatives 5.5 Present Worth: One-Shot Investments 5.6 Discounted Payback Period: Single Alternative 5.7 Discounted Payback Period: Multiple Alternatives 5.8 Capitalized Worth: Single Alternative 5.9 Capitalized Worth: Multiple Alternatives 5.10 Summary FE-Like Problems Problems Chapter 6: FUTURE WORTH 6.1 Introduction 6.2 Future Worth: Single Alternative 6.3 Future Worth: Multiple Alternatives 6.4 Maximizing the Investment Portfolio 6.5 More on Unequal Lives 6.6 Summary FE-Like Problems Problems Chapter 7: ANNUAL WORTH 7.1 Introduction 7.2 Annual Worth: Single Alternative 7.3 Annual Worth: Multiple Alternatives 7.4 Least Common Multiple of Lives Assumption 7.5 Unequal Lives Revisited 7.6 Capital Recovery Cost 7.7 Summary FE-Like Problems Problems Chapter 8: RATE OF RETURN ANALYSIS 8.1 Introduction 8.2 Internal Rate of Return: Single Alternative 8.3 Internal Rate of Return: Multiple Alternatives 8.4 External Rate of Return: Single Alternative 8.5 External Rate of Return: Multiple Alternatives 8.6 Analyzing Alternatives with No Positive Cash Flows 8.7 Summary 8.A Modified Internal Rate of Return 8.A-1 SINGLE ALTERNATIVE 8.A-2 MULTIPLE ALTERNATIVES FE-Like Problems Problems Chapter 9: DEPRECIATION METHODS 9.1 Introduction 9.2 Background on Depreciation Accounting 9.3 Straight-Line Depreciation (SLN) 9.4 Declining Balance and Double Declining Balance Depreciation (DB and DDB) 9.5 Switching from DDB to SLN with the Excel VDB Function 9.6 Modified Accelerated Cost Recovery System (MACRS) 9.6.1 MACRS-ADS 9.6.2 MACRS-GDS 9.7 Comparison of Depreciation Methods 9.8 Summary 9.A Sum-of-Years’-Digits Depreciation (SYD) 9.B Other Depreciation Methods 9.B.1 Units of Production Method 9.B.2 Operating Day (Hour) Method 9.B.3 Income Forecast Method 9.C Depletion FE-Like Problems Problems Chapter 10: AFTER-TAX ECONOMIC ANALYSIS 10.1 Introduction 10.2 Tax Concepts 10.3 Corporate Income Taxes 10.4 After-Tax Cash Flow Without Borrowing 10.5 After-Tax Comparison of Alternatives 10.6 After-Tax Cash Flows with Borrowing 10.7 How Much Money Should a Company Borrow? 10.8 Additional Tax Considerations 10.8.1 Investment Tax Credit 10.8.2 Section 179 Expense Deduction 10.8.3 Bonus Depreciation 10.9 Timing of Investment versus First Year’s Depreciation Charge 10.10 Summary FE-Like Problems Problems Chapter 11: REPLACEMENT ANALYSIS 11.1 Introduction 11.2 Cash Flow Approach 11.2.1 Before-Tax Analysis 11.2.2 After-Tax Analysis 11.3 Opportunity Cost Approach 11.3.1 Before-Tax Analysis 11.3.2 After-Tax Analysis 11.4 Section 1031 Exchanges 11.5 Optimum Replacement Interval 11.6 Summary FE-Like Problems Problems Chapter 12: INFLATION EFFECTS 12.1 Introduction 12.2 Using Indexes to Measure Inflation 12.3 Before-Tax Analysis in Inflationary Conditions 12.4 After-Tax Analysis in Inflationary Conditions 12.5 After-Tax Analysis with Inflation and Borrowed Capital 12.6 Summary FE-Like Problems Problems Chapter 13: SUPPLEMENTARY ANALYSIS 13.1 Introduction 13.2 Break-Even Analysis 13.3 Sensitivity Analysis 13.4 Risk Analysis 13.4.1 Distributions 13.4.2 Risk Aggregation 13.4.2.1 Analytical Solutions 13.4.2.2 Simulation Solutions 13.5 Summary 13.A Decision Tree Analysis FE-Like Problems Problems Chapter 14: ECONOMIC ANALYSIS IN THE PUBLIC AND REGULATED SECTORS 14.1 Introduction: The Nature of Public Projects 14.2 Build-Operate-Transfer 14.3 Objectives in Public Project Evaluation 14.4 Guidelines in Public-Sector Evaluation 14.5 U.S. Federal Government Guidelines 14.6 Using SEAT in Public Sector Evaluations 14.7 Benefit-Cost and Cost-Effectiveness Calculations 14.8 Important Considerations in Evaluating Public Projects 14.8.1 Point of View 14.8.2 Selection of the Interest Rate 14.8.3 Assessing Benefit-Cost Factors 14.8.4 Overcounting 14.8.5 Unequal Lives 14.8.6 Tolls, Fees, and User Charges 14.8.7 Multiple-Use Projects 14.8.8 Problems with the B/C Ratio 14.9 Introduction: The Revenue Requirements Method 14.10 Definition of Terms 14.11 Determining the Minimum Revenue Requirement 14.12 Showing Equivalence between Revenue Requirement and ATCF Methods 14.13 Summary 14.A OMB Circular No. A-94, Revised, Table of Contents FE-Like Problems Problems Chapter 15: CAPITAL BUDGETING 15.1 Introduction 15.2 The Classical Capital Budgeting Problem 15.2.1 Mathematical Formulation of the Classical Capital Budgeting Problem 15.2.2 Adding Constraints to the Mathematical Formulation 15.2.3 Analyzing the Sensitivity of the Investment Portfolio 15.3 Unequal Investment Durations 15.4 Capital Budgeting with Divisible Investments 15.5 Using Excel to Solve the Capital Budgeting Problem with Divisible Investments 15.6 Practical Considerations in Capital Budgeting 15.7 Summary FE-Like Problems Problems Chapter 16: OBTAINING AND ESTIMATING CASH FLOWS 16.1 Introduction 16.2 Cost Terminology 16.2.1 Life Cycle Viewpoint 16.2.2 Past/Future Viewpoint 16.2.3 Manufacturing Cost Structure Viewpoint 16.2.4 Fixed and Variable Viewpoint 16.2.5 Average and Marginal Viewpoint 16.3 Cost Estimation 16.3.1 Project Estimation 16.3.2 Estimating Methodologies 16.3.3 General Sources of Data 16.4 General Accounting Principles 16.4.1 Balance Sheet 16.4.2 Income Statement 16.4.3 Ratio Analysis 16.5 Cost Accounting Principles 16.5.1 Traditional Cost Allocation Methods 16.5.2 Activity Based Costing 16.5.3 Standard Costs 16.5.4 Economic Value Added 16.6 Summary FE-Like Problems Problems APPENDIXES Appendix A: Discrete Compound Interest Tables A-a-1 Single Sums, Uniform Series, and Gradient Series Interest Factors A-b-1 Geometric Series Present Worth Interest Factors A-c-1 Geometric Series Future Worth Interest Factors B Continuous Compound Interest Tables B-a-1 Single Sums, Uniform Series, and Gradient Series Interest Factors B-b-1 Continuous Flow Interest Factors ANSWERS TO EVEN NUMBERED PROBLEMS INDEX