This book emphasizes the concepts and techniques of analysis that prove useful in evaluating the economic feasibility of engineering systems, projects, and services for decision purposes. It also familiarizes the engineer with operations and operational feasibility necessary to considerations of the design process. Chapter topics cover economic and cost concepts; interest formula; calculations of economic equivalence; equivalence involving inflation; bases for comparison and decision-making among alternatives; evaluating production operations and replacement alternatives; accounting; income taxes in economic analysis; decisions under risk and uncertainty and involving multiple criteria; and estimating economic elements. For a basic understanding of mathematical modeling in complex operational systems, essential to a growing number of engineers today.
