Chapter 1: Foundations Of Engineering Economy

Time Value of Money, Engineering Economy, General Steps for Decision Making Processes, Steps in an Engineering Economy Study, Ethics – Different Levels, Code of Ethics for Engineers, Interest and Interest Rate, Rate of Return

Chapter 2: Factors: How Time and Interest Affect Money

F/P and P/F Factors, P/A and A/P Factors, F/A and A/F Factors, Factor Values, Arithmetic Gradient, Geometric Gradient, Find i or n

Chapter 3: Combining Factors and Spreadsheet Functions

Shifted uniform series, Shifted series and single cash flows, Shifted gradients

Chapter 4: Nominal and Effective Interest Rates

Interest Rate Statements, Interest period, Compounding period, Compounding frequency, Understanding Interest Rate Terminology, A nominal interest rate (r), Effective interest rates (i), Example 4.1, Effective Annual Interest Rates, Example 4.3, Example

Chapter 5: Present Worth Analysis

Formulate Alternatives, PW of equal-life alternatives, PW of different-life alternatives, Future Worth analysis, Capitalized Cost analysis