Cases In Engineering Economy

By (author) Peterson, William R; By (author) Eschenbach, Ted G
Description:
Designed to bring real-world complexity into the classroom, Cases in Engineering Economy provides 54 unique case studies in engineering economy. An ideal supplement to your engineering economic text, this casebook helps students to hone their analytical, logical, and communicative skills. The cases are authored by Ted Eschenbach and William Peterson, with contributions from engineering economy professors from ten different universities.
Table of contents:
1. New Office Equipment: Student develops requirements with little given data for activities to be supported by new copier machines. Organizational thinking required. 2. Budgeting Issues: Strategies for a group''s operating budget request. One focus is ethics. 3. Wildcat Oil in Kasakstan: Rough order of magnitude estimation of total facility cost and annual revenue. Option for NPV and different size facility. 4. Balder-Dash Inc.: Standard cost and allocated costs vs. true marginal cost (IE''s). 5. Can Crusher: Basic time value of money, costs, and breakeven analysis. 6. Lease a Lot: Compares leasing and ownership. Results show importance of separating financing and investing decisions. 7. The Board Looks to You: Bond valuation with realistic business details including early-call premium. Medium difficulty. Good example of employer taking a small fact and making big assumptions about individual talents--why engineering students must keep learning. 8. Picking a Price: Simplified real estate analysis. Demonstrates analysis to screen before acquiring more data and further decision-making. 9. Recycling?: Financial analysis supports recycling cardboard and selling unusable pallets to recycler. 10. The Cutting Edge: Make vs. buy and machine selection. 11. Harbor Delivery Service: Annual comparison of diesel vs. gasoline engines. 12. Buying a Dream: Compare three alternative mortgages for a first-time home buyer. 13. Guaranteed Return: Risk vs. expected return and choice of interest rate. 14. Northern Gushers: Incremental oil production investment with possible double-root. 15. Pave the Stockpile Area?: Sensitivity analysis for IRR. 16. Great White Hall: Proposal comparison using B/C analysis for RFP with unclear specifications. 17. A Free Lunch?: Is proposal too good-to-be true from two perspectives? Realistic (unordered) statement of facts. 18. Gravity-Free High: New product with development stages and probability of failure. 19. Crummy Castings: Decision tree problem with modest ambiguity. Options create more challenging problems. 20. New World Mining: Includes inflation. Funding agency vs. national perspective. Simulation option to analyze uncertainty. 21. Glowing in the Dark: Expected return and variance for facility of minimal size, of that plus preparation for later expansion, and of the full-size now. 22. City Car: Decision tree analysis. Includes discussion of strategy and risk. Some assumptions must be made. 23. Washing Away: Levee height and probability of flood damage. 24. Sinkemfast: Decision tree with assumptions required for realistic comparisons. Info supports creation of new, better alternatives. 25. Raster Blaster: Questions to guide students. Includes breakeven analysis. 26. Molehill & Mountain Movers: Compare depreciation methods with option for inflation. 27. To Use or Not To Use?: Focus is treatment of sunk costs. More complicated than most. Some discoveries in the data gathering process. Solution uses equation rather than cash flow table. 28. Olives in Your Backyard: Emphasizes taxes and sensitivity analysis. 29. New Fangled Manufacturing: Emphasizes taxes and sensitivity analysis. 30. Supersonic Service?: Breakeven and sensitivity analysis. 31. Freeflight Superdiscs: Inflation and sensitivity analysis for three alternatives. Includes taxes. 32. Mr. Speedy: Includes two memos using different inappropriate financial comparisons. Choose optimal life for rep