Contemporary Engineering Economics, Global Edition

For courses in engineering and economics

Comprehensively blends engineering concepts with economic theory

Contemporary Engineering Economics teaches engineers how to make smart financial decisions in an effort to create economical products. As design and manufacturing become an integral part of engineers’ work, they are required to make more and more decisions regarding money.

The 6th Edition helps students think like the 21st century engineer who is able to incorporate elements of science, engineering, design, and economics into his or her products. This text comprehensively integrates economic theory with principles of engineering, helping students build sound skills in financial project analysis.

Part 1: Basics of Financial Decisions

Chapter 1: Engineering Economic Decisions

Chapter 2: Accounting and Financial Decision Making

Chapter 3: Interest Rate and Economic Equivalence

Chapter 4: Understanding Money and Its Management

Part 2: Evaluation of Business and Engineering Assets

Chapter 5: Present-Worth Analysis

Chapter 6: Annual Equivalent-Worth Analysis

Chapter 7: Rate-of-Return Analysis

Part 3: Analysis of Project Cash Flows

Chapter 8: Cost Concepts Relevant to Decision Making

Chapter 9: Depreciation and Corporate Taxes

Chapter 10: Developing Project Cash Flows

Part 4: Handling Risk and Uncertainty

Chapter 11: Inflation and Its Impact on Project Cash

Chapter 12: Project Risk and Uncertainty

Chapter 13: Real-Options Analysis

Part 5: Special Topics in Engineering Economics

Chapter 14: Replacement Decisions

Chapter 15: Capital-Budgeting Decisions

Chapter 16: Economic Analysis in the Service Sector

Appendix A: Fundamentals of Engineering Review Questions

Appendix B: Interest Factors for Discrete Compounding

Appendix C: Values of the Standard Normal Distribution Function

Contemporary Engineering Economics provides the following features to facilitate learning:

• NEW! Chapter 1 contains a new relevant example on electric vehicle and battery manufacturing.
• NEW! Chapter 2 replaces all previous financial analyses and ratios with those based on the financial statements by Broadcom Corporation. Two new chapter examples have been provided with solutions to review student understanding of financial analysis.
• REVISED! Chapter 3 Excel worksheets have all been redesigned to take advantage of financial functions in solving economic equivalence problems.
• REVISED! Chapter 4 sections have been revised to enhance student understanding of both continuous funds-flow with continuous compounding and to better reflect the current bond market.
• UPDATED! Chapter 5 has been completely streamlined and all Excel spreadsheets have been revised.
• NEW! Chapter 6 includes both new make-buy and HVAC retrofit life-cycle-costing analysis examples.
• NEW! Chapter 7 now contains a section on modified internal rate of return.
• REVISED! Chapter 8 has been streamlined and data related to cost of owning and operating a vehicle has been updated.
• UPDATED! Chapter 9 includes all new information on taxes and Excel spreadsheets on generating depreciation schedules.
• REVISED! Chapter 10 cash flow tables now use Excel.
• UPDATED! Chapter 11 data related to consumer price index and cost data now reflects t