Description
This book directs the engineering manager or the undergraduate student preparing to become an engineering manager, who is or will become actively engaged in the management of economic-risk trade-off decisions for engineering investments within an organizational system. In todays global economy, this may mean managing the economic risks of engineering investments across national boundaries in international organizations, government, or service organizations. As such, this is an applied book. The books goal is to provide an easy to understand, up to date, and coherent treatment of the management of the economic-risk trade-offs of engineering investments. This book accomplishes this goal by cumulatively sequencing knowledge content from foundational economic and accounting concepts to cost estimating to the traditional engineering economics knowledge culminating in fundamental engineering managerial economic decision-making incorporating risk into engineering management economic decisions. Part 1 Economic Context of Engineering Management Decisions 1 Managerial Economics of Engineering Organizations 2 General Accounting Fundamentals 3 Cost Accounting Fundamentals 4 Engineering Cost Concepts and Cost Estimating Part 2 Economic Analysis of Engineering Activities and Projects 5 Interest Equivalence 6 Measures of Investment Worth 7 Depreciation Effects on Engineering Investments 8 Tax Effects on Engineering Investments 9 Inflation Effects on Engineering Investments 10 Incremental Analysis 11 Replacement Analysis Part 3 Managing Engineering Investments 12 Setting MARR 13 Capital Budgeting Engineering Investments 14 Benefit-Cost Ratio Analysis 15 Introduction to Management Economic Decision Theory and Risk Analysis Appendix A: Use of the Microsoft Excel Compound Interest Calculator Spreadsheet Appendix B: Chapter Homework Problems Appendix C: Fundamentals of Engineering (FE) Exam Example Questions Bibliography Index
