Fundamentals Of Economics In Engineering Projects

Chapter one includes introduction to engineering economics which constitute general introduction, value analysis, linear programming, interest and money time relationships, examples of present, future, and annual analysis, depreciation and valuation, capital budgeting, minimum cost formulas, private and public economic studies. In chapter two cash flow concepts were introduced and discussed thoroughly. This chapter includes time value of money, cash flow diagrams, notations, and calculation of interest. Chapters three discusses interest factors and the importance of studying compound amount factor, present worth of money, interest periods, series payments, and other interest calculation concepts. Chapter four introduces and discusses comparison of alternatives from the following considerations: discount rate, present worth method, annual cost, and rate of return.Chapter five handles the benefit cost analysis from the viewpoint of identification of relevant benefits and costs, measurement of benefits and costs, selection of best alternative, and treatment of uncertainty. Chapter six is the conclusions of this textbook which summarizes the important points in engineering economics.