Understanding Engineering Economy: A Practical Approach

The 1st edition of “Understanding Engineering Economy: A Practical Approach” is designed to give the reader a comprehensive overview of a variety of approaches that may be used to solve economic and financial decisions in his or her daily life. These approaches put an emphasis on solving problems dealing with the time value of money. This book is intended to be used not only by engineering students, but also by the general public, as well as those who wish to understand the concepts of engineering economy.With the use of this book, the reader will learn to use a step-by-step approach to solve problems efficiently and effectively using minimal time and effort. Special attention was placed on helping the reader overcome common misconceptions and mistakes that the author has identified through his many years of experience and extensive teaching career.This book introduces a simple and unique technique to find any unknown value from equivalent cash flow diagrams, and also includes a handy and convenient one-page reference sheet that includes formulas the user can use throughout the book. Two easy-to-follow procedural flow charts for solving benefit cost ratio and rate of return problems are included within the text. The author has developed and included in this book, a comprehensive interest table that spans from a value of 1/8% to 100% with an interest increment as small as 1/8% for a lower rate of interest group. This interest table is very practical and helpful to solve problems in modern society.At the end of each chapter, a summary and multiple practice problems are included to help the user practice and hone their skills in engineering economy. These problems also include the complete solutions for convenience and answer validation.“Understanding Engineering Economy: A Practical Approach” also helps engineering professionals be better prepared for the “Fundamentals of Engineering” (FE) Exam and the Professional Engineering (PE) Exam. A number of typical exam questions with full solutions are included in this book.Due to the author’s concise writing and decisive problem-solving, this book can become a valuable reference the reader can refer to throughout their career or daily life.