威廉?G.沙利文（William G. Sullivan），弗吉尼亚理工学院暨州立大学（Virginia Polytechnic Institute and Stete University）教授
目录
CONTENTS
Preface 15
Green Content 23
CHAPTER 1
Introduction to Engineering Economy 31
1.1 Introduction 32
1.2 The Principles of Engineering Economy 33
1.3 Engineering Economy and the Design Process 36
1.4 Using Spreadsheets in Engineering Economic Analysis 45
1.5 Try Your Skills 45
1.6 Summary 46
CHAPTER 2
Cost Concepts and Design Economics 50
2.1 Cost Terminology 51
2.2 The General Economic Environment 57
2.3 Cost-Driven Design Optimization 67
2.4 Present Economy Studies 72
2.5 Case Study—The Economics of Daytime Running Lights 79
2.6 In-Class Exercise 80
2.7 Try Your Skills 80
2.8 Summary 82
CHAPTER 3
Cost-Estimation Techniques 92
3.1 Introduction 93
3.2 An Integrated Approach 95
3.3 Selected Estimating Techniques (Models) 103
3.4 Parametric Cost Estimating 108
3.5 Case Study—Demanufacturing of Computers 119
3.6 Electronic Spreadsheet Modeling: Learning Curve 121
3.7 In-Class Exercise 123
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3.8 Try Your Skills 123
3.9 Summary 126
CHAPTER 4
The Time Value of Money 134
4.1 Introduction 135
4.2 Simple Interest 136
4.3 Compound Interest 137
4.4 The Concept of Equivalence 137
4.5 Notation and Cash-Flow Diagrams and Tables 140
4.6 Relating Present and Future Equivalent Values of Single Cash Flows 144
4.7 Relating a Uniform Series (Annuity) to Its Present and Future Equivalent Values 150
4.8 Summary of Interest Formulas and Relationships for Discrete Compounding 160
4.9 Deferred Annuities (Uniform Series) 161
4.10 Equivalence Calculations Involving Multiple Interest Formulas 163
4.11 Uniform (Arithmetic) Gradient of Cash Flows 169
4.12 Geometric Sequences of Cash Flows 174
4.13 Interest Rates that Vary with Time 179
4.14 Nominal and Effective Interest Rates 181
4.15 Compounding More Often than Once per Year 183
4.16 Interest Formulas for Continuous Compounding and Discrete Cash Flows 186
4.17 Case Study—Understanding Economic “Equivalence” 189
4.18 In-Class Exercise 192
4.19 Try Your Skills 192
4.20 Summary 201
CHAPTER 5
Evaluating a Single Project 218
5.1 Introduction 219
5.2 Determining the Minimum Attractive Rate of Return (MARR) 220
5.3 The Present Worth Method 221
5.4 The Future Worth Method 228
5.5 The Annual Worth Method 229
5.6 The Internal Rate of Return Method 234
5.7 The External Rate of Return Method 245
5.8 The Payback (Payout) Period Method 247
5.9 Case Study—A Proposed Capital Investment to Improve Process Yield 250
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5.10 Electronic Spreadsheet Modeling: Payback Period Method 252
5.11 In-Class Exercise 254
5.12 Try Your Skills 254
5.13 Summary 260 Appendix 5-A The Multiple Rate of Return Problem with the IRR Method 271
CHAPTER 6
Comparison and Selection among Alternatives 276
6.1 Introduction 277
6.2 Basic Concepts for Comparing Alternatives 277
6.3 The Study (Analysis) Period 281
6.4 Useful Lives Are Equal to the Study Period 283
6.5 Useful Lives Are Unequal among the Alternatives 300
6.6 Personal Finances 313
6.7 Case Study—Ned and Larry’s Ice Cream Company 317
6.8 Postevaluation of Results 320
6.9 Project Postevaluation Spreadsheet Approach 320
6.10 In-Class Exercise 323
6.11 Try Your Skills 324
6.12 Summary 334
CHAPTER 7
Depreciation and Income Taxes 352
7.1 Introduction 353
7.2 Depreciation Concepts and Terminology 353
7.3 The Classical (Historical) Depreciation Methods 356
7.4 The Modi.ed Accelerated Cost Recovery System 361
7.5 A Comprehensive Depreciation Example 370
7.6 Introduction to Income Taxes 374
7.7 The Effective (Marginal) Corporate Income Tax Rate 377
7.8 Gain (Loss) on the Disposal of an Asset 380
7.9 General Procedure for Making After-Tax Economic Analyses 381
7.10 Illustration of Computations of ATCFs 385
7.11 Economic Value Added 397
7.12 In-Class Exercise 399
7.13 Try Your Skills 399
7.14 Summary 402
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CHAPTER 8
Price Changes and Exchange Rates 415
8.1 Introduction 416
8.2 Terminology and Basic Concepts 417
8.3 Fixed and Responsive Annuities 423
8.4 Differential Price Changes 428
8.5 Spreadsheet Application 430
8.6 Foreign Exchange Rates and Purchasing Power Concepts 432
8.7 Case Study-Selecting Electric Motors to Power an Assembly Line 437
8.8 In-Class Exercise 440
8.9 Try Your Skills 440
8.10 Summary 442
CHAPTER 9
Replacement Analysis 452
9.1 Introduction 453
9.2 Reasons for Replacement Analysis 453
9.3 Factors that Must Be Considered in Replacement Studies 454
9.4 Typical Replacement Problems 457
9.5 Determining the Economic Life of a New Asset (Challenger) 460
9.6 Determining the Economic Life of a Defender 464
9.7 Comparisons in Which the Defender’s Useful Life Differs from that of the Challenger 467
9.8 Retirement without Replacement (Abandonment) 470
9.9 After-Tax Replacement Studies 471
9.10 Case Study—Replacement of a Hospital’s Emergency Electrical Supply System 479
9.11 In-Class Exercise 483
9.12 Try Your Skills 483
9.13 Summary 484
CHAPTER 10
Evaluating Projects with the Bene.t.Cost Ratio Method 493
10.1 Introduction 494
10.2 Perspective and Terminology for Analyzing Public Projects 495
10.3 Self-Liquidating Projects 496
10.4 Multiple-Purpose Projects 496
10.5 Dif.culties in Evaluating Public-Sector Projects 499
10.6 What Interest Rate Should Be Used for Public Projects? 500
10.7 The Bene.t.Cost Ratio Method 502
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10.8 Evaluating Independent Projects by B.C Ratios 508
10.9 Comparison of Mutually Exclusive Projects by B.C Ratios 510
10.10 Case Study—Improving a Railroad Crossing 515
10.11 Try Your Skills 517
10.12 Summary 518
CHAPTER 11
Breakeven and Sensitivity Analysis 525
11.1 Introduction 526
11.2 Breakeven Analysis 526
11.3 Sensitivity Analysis 533
11.4 Multiple Factor Sensitivity Analysis 539
11.5 Try Your Skills 543
11.6 Summary 544
CHAPTER 12
Probabilistic Risk Analysis 553
12.1 Introduction 554
12.2 Sources of Uncertainty 555
12.3 The Distribution of Random Variables 555
12.4 Evaluation of Projects with Discrete Random Variables 559
12.5 Evaluation of Projects with Continuous Random Variables 568
12.6 Evaluation of Risk and Uncertainty by Monte Carlo Simulation 573
12.7 Performing Monte Carlo Simulation with a Computer 577
12.8 Decision Trees 581
12.9 Real Options Analysis 586
12.10 Summary 589
CHAPTER 13
The Capital Budgeting Process 597
13.1 Introduction 598
13.2 Debt Capital 600
13.3 Equity Capital 601
13.4 The Weighted Average Cost of Capital (WACC) 604
13.5 Project Selection 608
13.6 Postmortem Review 612
13.7 Budgeting of Capital Investments and Management Perspective 613
13.8 Leasing Decisions 614
13.9 Capital Allocation 616
13.10 Summary 622
14 CONTENTS
CHAPTER 14
Decision Making Considering Multiattributes 626
附录及索引
14.1 Introduction 627
14.2 Examples of Multiattribute Decisions 627
14.3 Choice of Attributes 629
14.4 Selection of a Measurement Scale 629
14.5 Dimensionality of the Problem 630
14.6 Noncompensatory Models 630
14.7 Compensatory Models 635
14.8 Summary 643
Appendix A Accounting Fundamentals 649 Appendix B Abbreviations and Notation 659 Appendix C Interest and Annuity Tables for Discrete Compounding 663 Appendix D Interest and Annuity Tables for Continuous Compounding 682 Appendix E Standard Normal Distribution 686 Appendix F Selected References 689 Appendix G Solutions to Try Your Skills 692 Appendix H Answers to Selected Problems 733
Index 737
