Description

For courses in engineering and economics

This package includes MyEngineeringLab^™.

 

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 Sixth 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.

 

Personalize Learning with MyEngineeringLab

This package includes MyEngineeringLab, an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them better absorb course material and understand difficult concepts. Instructors can choose from a wide range of assignment options, including time limits, proctoring, and maximum number of attempts allowed. The bottom line: MyEngineeringLab means less time grading and more time teaching.

 

MyEngineeringLab should only be purchased when required by an instructor. Please be sure you have the correct ISBN and Course ID. Instructors, contact your Pearson representative for more information.

 

Features

This title is a Pearson Global Edition. The Editorial team at Pearson has worked closely with educators around the world to include content which is especially relevant to students outside the United States.

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 the current inflation trend and deflation in various economic sectors. All cash flow statements have been revised by using Excel.
• REVISED! Chapter 12 Excel worksheet related to sensitivity analysis has been redesigned.
• REVISED! Chapter 13 has rewritten all examples on financial options that use graphical illustrations to explain difficult conceptual financial and real option problems. The example on how to predict project volatility has been expanded.
• NEW! Chapter 14 contains a new graphical chart that simplifies overall replacement strategies under an infinite planning horizon.
• NEW! Chapter 15 has a new figure that illustrates the capital structure of a typical firm, as well as a new example that teaches students how to find the optimal capital budget of projects that cannot be accepted in part.
• UPDATED! Chapter 16 has been streamlined to include a detailed look at a vehicle inspection program via a cost-benefit analysis. It also contains a new section on cost-utility analysis in relation to health care decisions.

UPDATED! Enhanced pedagogy helps students understand difficult topics and relate them to real world examples.

• UPDATED! All chapter-opening vignettes have been updated or replaced with newer issues more relevant to the subject matter. A selection of these vignettes discusses the global economy in terms of variety and scope of businesses, a topic extremely important for modern engineers.
• NEW! Chapter review questions regarding engineering in the service sector addresses the growing need for engineers in this area.
• NEW! Numerous Economic Decision problems now include Excel spreadsheet modeling techniques to offer a variety of “what-if” solutions to possible problems that could occur.
• UPDATED! 20% of end-of-chapter problems are either updated or revised to reflect more relevant issues.
• UPDATED! A total of 618 end-of-chapter problems, 65 short case study questions, 196 fully worked-out examples, and 40 careful

New to this Edition

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 the current inflation trend and deflation in various economic sectors. All cash flow statements have been revised by using Excel.
• REVISED! Chapter 12 Excel worksheet related to sensitivity analysis has been redesigned.
• REVISED! Chapter 13 has rewritten all examples on financial options that use graphical illustrations to explain difficult conceptual financial and real option problems. The example on how to predict project volatility has been expanded.
• NEW! Chapter 14 contains a new graphical chart that simplifies overall replacement strategies under an infinite planning horizon.
• NEW! Chapter 15 has a new figure that illustrates the capital structure of a typical firm, as well as a new example that teaches students how to find the optimal capital budget of projects that cannot be accepted in part.
• UPDATED! Chapter 16 has been streamlined to include a detailed look at a vehicle inspection program via a cost-benefit analysis. It also contains a new section on cost-utility analysis in relation to health care decisions.

UPDATED! Enhanced pedagogy helps students understand difficult topics and relate them to real world examples.

• UPDATED! All chapter-opening vignettes have been updated or replaced with newer issues more relevant to the subject matter. A selection of these vignettes discusses the global economy in terms of variety and scope of businesses, a topic extremely important for modern engineers.
• NEW! Chapter review questions regarding engineering in the service sector addresses the growing need for engineers in this area.
• NEW! Numerous Economic Decision problems now include Excel spreadsheet modeling techniques to offer a variety of “what-if” solutions to possible problems that could occur.
• UPDATED! 20% of end-of-chapter problems are either updated or revised to reflect more relevant issues.
• UPDATED! A total of 618 end-of-chapter problems, 65 short case study questions, 196 fully worked-out examples, and 40 carefully selected exam review appendix questions help students test their knowledge of key textual concepts and relate core ideas to the real world.

MyEngineeringLab^TM not include

Table of Contents

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