SOLUTION MANUAL
ENGINEERING ECONOMICS: FINANCIAL DECISION
MAKING FOR ENGINEERS
, Table Of Contents
1. Engineering Decision Making
2. Time Value Of Money
3. Cash Flow Analysis
4. Comparison Methods: Part 1
5. Comparison Methods: Part 2
6. Financial Accounting And Business Plans
7. Replacement Decisions
8. Taxes
9. Inflation
10. Public Sector Decision Making
11. Project Management
12. Dealing With Uncertainty And Risk
13. Qualitative Considerations And Multiple Criteria
, Solutions Manual
Engineering Economics
Financial Decision Making For Engineers, 8/E
Eighth Edition
, Chapter 1
Solutions To Chapter-End Problems
A. Key Concepts
When To Use Engineering Economics:
1.1 (A) Yes - Several Quantifiable Alternatives Exist
(b) Yes - If Quantifiable
(c) No - Alternatives Are Not Quantifiable
(d) No - Since It Mainly Involves Intangible Qualifications Of The Candidate
(e) Yes - At Least Two Alternatives Are Quantifiable
(f) Yes - With Quantifiable Costs And Benefits
(g) No - Hard To Quantify
(h) Yes - If The Effect Is Quantifiable
(i) Yes - Quantifiable
(j) No - Benefits Are Hard To Quantify
(k) Yes - Quantifiable
(l) Yes - If Quantifiable
1.2 Five Examples:
1) Location Of The Business: Renting Vs. Buying Decision
2) Equipment: Leasing Vs. Buying Decision
3) Equipment: Choosing One Out Of Several Alternatives; Analysis Of
Cost Savings
4) Viability Of The Business: Analysis Of Cash Flow; Ability To
Recover The Capital Investment
5) Effect Of The Corporate Tax Rate
1.3 Whatever The Description For The Items Listed, It Should Be Clear
That All Engineering Design Is Founded On Controlling The Costs
Incurred.
Ethics In Decision-Making:
1.4 There Is No Right Or Wrong Answer To Any Of These Questions. The
Student Should Observe, However, That There Often Is A Difference In
How We Should Behave Compared To How We Do Behave.
B. Applications
1
Copyright © 2016 Pearson Canada Inc.
ENGINEERING ECONOMICS: FINANCIAL DECISION
MAKING FOR ENGINEERS
, Table Of Contents
1. Engineering Decision Making
2. Time Value Of Money
3. Cash Flow Analysis
4. Comparison Methods: Part 1
5. Comparison Methods: Part 2
6. Financial Accounting And Business Plans
7. Replacement Decisions
8. Taxes
9. Inflation
10. Public Sector Decision Making
11. Project Management
12. Dealing With Uncertainty And Risk
13. Qualitative Considerations And Multiple Criteria
, Solutions Manual
Engineering Economics
Financial Decision Making For Engineers, 8/E
Eighth Edition
, Chapter 1
Solutions To Chapter-End Problems
A. Key Concepts
When To Use Engineering Economics:
1.1 (A) Yes - Several Quantifiable Alternatives Exist
(b) Yes - If Quantifiable
(c) No - Alternatives Are Not Quantifiable
(d) No - Since It Mainly Involves Intangible Qualifications Of The Candidate
(e) Yes - At Least Two Alternatives Are Quantifiable
(f) Yes - With Quantifiable Costs And Benefits
(g) No - Hard To Quantify
(h) Yes - If The Effect Is Quantifiable
(i) Yes - Quantifiable
(j) No - Benefits Are Hard To Quantify
(k) Yes - Quantifiable
(l) Yes - If Quantifiable
1.2 Five Examples:
1) Location Of The Business: Renting Vs. Buying Decision
2) Equipment: Leasing Vs. Buying Decision
3) Equipment: Choosing One Out Of Several Alternatives; Analysis Of
Cost Savings
4) Viability Of The Business: Analysis Of Cash Flow; Ability To
Recover The Capital Investment
5) Effect Of The Corporate Tax Rate
1.3 Whatever The Description For The Items Listed, It Should Be Clear
That All Engineering Design Is Founded On Controlling The Costs
Incurred.
Ethics In Decision-Making:
1.4 There Is No Right Or Wrong Answer To Any Of These Questions. The
Student Should Observe, However, That There Often Is A Difference In
How We Should Behave Compared To How We Do Behave.
B. Applications
1
Copyright © 2016 Pearson Canada Inc.
