Engineering Economy 16th Edition By William G.SALLAVAN – Test Bank

Engineering Economy 16th Edition By William G.SALLAVAN – Test Bank

Overview

Here’s a general outline of topics covered in engineering economy:

1. Introduction to Engineering Economy
   • Definition and importance of engineering economy
   • Time value of money concept
   • Economic decision-making process
2. Understanding Interest and Equivalence
   • Interest rates and types of interest
   • Cash flow diagrams and conventions
   • Equivalence and time value of money calculations
3. Evaluating Project Alternatives
   • Present worth analysis
   • Annual worth analysis
   • Future worth analysis
   • Rate of return analysis
   • Benefit-cost ratio analysis
4. Evaluating Depreciation and Taxes
   • Depreciation methods (e.g., straight-line, declining balance)
   • Tax considerations and effects on cash flows
5. Assessing Replacement and Retention Decisions
   • Replacement analysis
   • Equipment and project life cycle costing
   • Sensitivity analysis and risk assessment
6. Evaluating Inflation and Price Changes
   • Inflation and its effects on cash flows
   • Price indices and deflating cash flows
7. Evaluating Uncertainty and Risk
   • Decision making under risk and uncertainty
   • Probability concepts and decision trees
   • Sensitivity analysis and Monte Carlo simulation
8. Evaluating Financial Investments
   • Bonds and stocks
   • Capital budgeting techniques
   • Risk and return analysis
9. Evaluating Social and Economic Factors
   • Social and environmental cost-benefit analysis
   • Economic impact analysis
   • Sustainability considerations