The ability to assess the economic viability of potential solutions is paramount. "Fundamentals of Engineering Economics" addresses this need, offering a comprehensive and accessible guide to the principles, concepts, and methodologies essential in engineering economics.This book is designed to equip students and professionals alike with the necessary tools to navigate economic decision-making within engineering contexts.
The text begins with an overview, emphasizing the importance of understanding economic fundamentals for effective decision-making. It then delves into various topics, including fixed and variable costs, the time value of money, capital project evaluation methods, decision analysis, depreciation, taxes, and public sector initiatives. Each chapter is enriched with detailed case studies and exercises, providing real-world applications that reinforce theoretical concepts and enhance learning.
Four fundamental principles underscore the essence of engineering economics within the book:
Time Value of Money: Highlighting the principle that a dollar earned today holds greater value than a dollar earned in the future.
Alternative Evaluation: Emphasizing the importance of comparing alternatives to determine the most economically favorable solution.
Cost-Benefit Analysis: Asserting that marginal revenue must exceed marginal cost for a project to be economically viable.
Risk and Return: Stipulating that additional risk should only be assumed if it promises an expected additional return.
Through clear explanations and illustrative examples, "Fundamentals of Engineering Economics" equips readers with the essential knowledge and analytical skills needed to assess the economic feasibility of engineering projects and make informed decisions. It serves as an invaluable resource for students studying Economic Analysis and Technical Applications, as well as professionals seeking to deepen their understanding of engineering economics principles and methodologies.
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