Presents computational tools, techniques, models, and approaches for economic analysis with a focus on industrial and engineering processes. Providing a presentation of economic analysis of the unique aspects of industrial processes, this title integrates mathematical models, optimization, computer analysis, and managerial decision processes.

APPLIED ECONOMIC ANALYSISCost- and Value-Related Definitions Economics of Worker Assignment Economics of Resource Utilization Minimum Annual Revenue Requirement (MARR) Analysis COST CONCEPTS AND TECHNIQUESProject Cost EstimationCost Monitoring Project Balance Technique Cost and Schedule Control Systems Criteria Sources of Capital Commercial Loans Bonds and Stocks Interpersonal Loans Foreign Investment Investment BanksMutual Funds Supporting ResourcesActivity-Based CostingCost, Time, and Productivity FormulasPractice Problems for Cost Concepts and Techniques FUNDAMENTALS OF ECONOMIC ANALYSISThe Economic Analysis ProcessSimple and Compound Interest RatesInvestment Life for Multiple Returns Nominal and Effective Interest RatesCash-Flow Patterns and Equivalence Compound Amount FactorPresent Worth Factor Uniform Series Present Worth Factor Uniform Series Capital Recovery Factor Uniform Series Compound Amount Factor Uniform Series Sinking Fund FactorCapitalized Cost FormulaPermanent Investments Formula Arithmetic Gradient Series Increasing Geometric Series Cash Flow Decreasing Geometric Series Cash FlowInternal Rate of ReturnBenefit/cost ratio Simple Payback Period Discounted Payback Period Fixed and Variable Interest Rates Practice Problems for Fundamentals of Economic Analysis ECONOMIC METHODS FOR COMPARING INVESTMENT ALTERNATIVES Net Present Value Analysis Annual Value AnalysisInternal Rate of Return Analysis Incremental Analysis Guidelines for Comparison of Alternatives Practice Problems: Comparing Investment Alternatives ASSET REPLACEMENT AND RETENTION ANALYSISConsiderations for Replacement AnalysisTerms of Replacement AnalysisEconomic Service Life (ESL) Replacement Analysis Computation Practice Problems for Replacement and Retention AnalysisDEPRECIATION METHODSTerminology of DepreciationDepreciation Methods Practice Problems: Depreciation Methods Break-even analysisProfit Ratio AnalysisPractice Problems: Break-Even Analysis EFFECTS OF INFLATION AND TAXESMild InflationModerate Inflation Severe InflationHyperinflation Foreign-Exchange Rates After-Tax Economic Analysis Before-Tax and After-Tax Cash Flow Effects of Taxes on Capital Gain After-Tax Economic Analysis Practice Problems: Effects of Inflation and Taxes ADVANCED CASH-FLOW ANALYSIS TECHNIQUES Amortization of Capitals Introduction to Tent Cash-Flow AnalysisSpecial Application of AGSDesign and Analysis of Tent Cash-Flow ProfilesDerivation of General Tent EquationMULTIATTRIBUTE INVESTMENT ANALYSIS AND SELECTION The Problem of Investment Selection Utility Models The Analytic Hierarchy Process Investment BenchmarkingReferencesBUDGETING AND CAPITAL ALLOCATIONTop-Down BudgetingBottom-Up Budgeting Mathematical Formulation of Capital AllocationTHE ENGINEA SOFTWARE: A TOOL FOR ECONOMIC EVALUATION The ENGINEA Software The Excel Spreadsheet Functions Reference COST BENCHMARKING CASE STUDY AbstractIntroduction Basis of the Methodology Evaluation Baselines Data Collection Processes Analysis of the FactorsConclusions and RecommendationsReference Appendix A: Definitions and TermsAppendix B: Engineering Conversion Factors Appendix C: Computational and Mathematical FormulaeAppendix D: Units of MeasureAppendix E: Interest Factors and Tables Index