本书系统介绍了工程经济分析的理论、原理、方法和应用案例。全书共分为3部分。部分是工程经济基本原理，主要阐述工程经济分析的基本原则、重要的成本概念和估计技术、货币时间价值原理等工程经济学的基本概念和原理；第2部分介绍工程经济基本方法，深入分析了投资方案的赢利性评价方法和比选方法，折旧、所得税、通货膨胀等队评价方法的影响，设备更新分析方法，不确定性分析方法；第3部分为工程经济分析方法特别专题， 内容包括公共项目的费用效益分析方法、风险分析技术和融资及资本预算方法。

威廉?G.沙利文（William G. Sullivan），弗吉尼亚理工学院暨州立大学（Virginia Polytechnic Institute and Stete University）教授

CONTENTS
Preface 15
Green Content 23
CHAPTER 1
Introduction to Engineering Economy 31
1.1 Introduction 32
1.2 The Principles of Engineering Economy 33
1.3 Engineering Economy and the Design Process 36
1.4 Using Spreadsheets in Engineering Economic Analysis 45
1.5 Try Your Skills 45
1.6 Summary 46
CHAPTER 2
Cost Concepts and Design Economics 50
2.1 Cost Terminology 51
2.2 The General Economic Environment 57
2.3 Cost-Driven Design Optimization 67
2.4 Present Economy Studies 72
2.5 Case Study—The Economics of Daytime Running Lights 79
2.6 In-Class Exercise 80
2.7 Try Your Skills 80
2.8 Summary 82
CHAPTER 3
Cost-Estimation Techniques 92
3.1 Introduction 93
3.2 An Integrated Approach 95
3.3 Selected Estimating Techniques (Models) 103
3.4 Parametric Cost Estimating 108
3.5 Case Study—Demanufacturing of Computers 119
3.6 Electronic Spreadsheet Modeling: Learning Curve 121
3.7 In-Class Exercise 123
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10 CONTENTS
3.8 \tTry Your Skills 123
3.9 \tSummary 126
CHAPTER 4
The Time Value of Money \t134
4.1 \tIntroduction 135
4.2 \tSimple Interest 136
4.3 \tCompound Interest 137
4.4 \tThe Concept of Equivalence 137
4.5 \tNotation and Cash-Flow Diagrams and Tables 140
4.6 \tRelating Present and Future Equivalent Values of Single Cash Flows 144
4.7 \tRelating a Uniform Series (Annuity) to Its Present and Future Equivalent Values 150
4.8 \tSummary of Interest Formulas and Relationships for Discrete Compounding 160
4.9 \tDeferred Annuities (Uniform Series) 161
4.10 \tEquivalence Calculations Involving Multiple Interest Formulas 163
4.11 \tUniform (Arithmetic) Gradient of Cash Flows 169
4.12 \tGeometric Sequences of Cash Flows 174
4.13 \tInterest Rates that Vary with Time 179
4.14 \tNominal and Effective Interest Rates 181
4.15 \tCompounding More Often than Once per Year 183
4.16 \tInterest Formulas for Continuous Compounding and Discrete Cash Flows 186
4.17 \tCase Study—Understanding Economic “Equivalence” 189
4.18 \tIn-Class Exercise 192
4.19 \tTry Your Skills 192
4.20 \tSummary 201
CHAPTER 5
Evaluating a Single Project \t218
5.1 \tIntroduction 219
5.2 \tDetermining the Minimum Attractive Rate of Return (MARR) 220
5.3 \tThe Present Worth Method 221
5.4 \tThe Future Worth Method 228
5.5 \tThe Annual Worth Method 229
5.6 \tThe Internal Rate of Return Method 234
5.7 \tThe External Rate of Return Method 245
5.8 \tThe Payback (Payout) Period Method 247
5.9 \tCase Study—A Proposed Capital Investment to Improve Process Yield 250
CONTENTS 11
5.10 \tElectronic Spreadsheet Modeling: Payback Period Method 252
5.11 \tIn-Class Exercise 254
5.12 \tTry Your Skills 254
5.13 Summary 260 Appendix 5-A The Multiple Rate of Return Problem with the IRR Method 271
CHAPTER 6
Comparison and Selection among Alternatives \t276
6.1 \tIntroduction 277
6.2 \tBasic Concepts for Comparing Alternatives 277
6.3 \tThe Study (Analysis) Period 281
6.4 \tUseful Lives Are Equal to the Study Period 283
6.5 \tUseful Lives Are Unequal among the Alternatives 300
6.6 \tPersonal Finances 313
6.7 \tCase Study—Ned and Larry’s Ice Cream Company 317
6.8 \tPostevaluation of Results 320
6.9 \tProject Postevaluation Spreadsheet Approach 320
6.10 \tIn-Class Exercise 323
6.11 \tTry Your Skills 324
6.12 \tSummary 334
CHAPTER 7
Depreciation and Income Taxes \t352
7.1 Introduction \t353
7.2 Depreciation Concepts and Terminology \t353
7.3 The Classical (Historical) Depreciation Methods \t356
7.4 The Modi.ed Accelerated Cost Recovery System \t361
7.5 \tA Comprehensive Depreciation Example 370
7.6 \tIntroduction to Income Taxes 374
7.7 \tThe Effective (Marginal) Corporate Income Tax Rate 377
7.8 \tGain (Loss) on the Disposal of an Asset 380
7.9 \tGeneral Procedure for Making After-Tax Economic Analyses 381
7.10 \tIllustration of Computations of ATCFs 385
7.11 \tEconomic Value Added 397
7.12 \tIn-Class Exercise 399
7.13 \tTry Your Skills 399
7.14 \tSummary 402
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CHAPTER 8
Price Changes and Exchange Rates \t415
8.1 \tIntroduction 416
8.2 \tTerminology and Basic Concepts 417
8.3 \tFixed and Responsive Annuities 423
8.4 \tDifferential Price Changes 428
8.5 \tSpreadsheet Application 430
8.6 \tForeign Exchange Rates and Purchasing Power Concepts 432
8.7 \tCase Study-Selecting Electric Motors to Power an Assembly Line 437
8.8 \tIn-Class Exercise 440
8.9 \tTry Your Skills 440
8.10 \tSummary 442
CHAPTER 9
Replacement Analysis \t452
9.1 \tIntroduction 453
9.2 \tReasons for Replacement Analysis 453
9.3 \tFactors that Must Be Considered in Replacement Studies 454
9.4 \tTypical Replacement Problems 457
9.5 \tDetermining the Economic Life of a New Asset (Challenger) 460
9.6 \tDetermining the Economic Life of a Defender 464
9.7 \tComparisons in Which the Defender’s Useful Life Differs from that of the Challenger 467
9.8 \tRetirement without Replacement (Abandonment) 470
9.9 \tAfter-Tax Replacement Studies 471
9.10 \tCase Study—Replacement of a Hospital’s Emergency Electrical Supply System 479
9.11 \tIn-Class Exercise 483
9.12 \tTry Your Skills 483
9.13 \tSummary 484
CHAPTER 10
Evaluating Projects with the Bene.t.Cost Ratio Method 493
10.1 \tIntroduction 494
10.2 \tPerspective and Terminology for Analyzing Public Projects 495
10.3 \tSelf-Liquidating Projects 496
10.4 \tMultiple-Purpose Projects 496
10.5 \tDif.culties in Evaluating Public-Sector Projects 499
10.6 \tWhat Interest Rate Should Be Used for Public Projects? 500
10.7 \tThe Bene.t.Cost Ratio Method 502
CONTENTS 13
10.8 \tEvaluating Independent Projects by B.C Ratios 508
10.9 \tComparison of Mutually Exclusive Projects by B.C Ratios 510
10.10 \tCase Study—Improving a Railroad Crossing 515
10.11 \tTry Your Skills 517
10.12 \tSummary 518
CHAPTER 11
Breakeven and Sensitivity Analysis \t525
11.1 \tIntroduction 526
11.2 \tBreakeven Analysis 526
11.3 \tSensitivity Analysis 533
11.4 \tMultiple Factor Sensitivity Analysis 539
11.5 \tTry Your Skills 543
11.6 \tSummary 544
CHAPTER 12
Probabilistic Risk Analysis \t553
12.1 \tIntroduction 554
12.2 \tSources of Uncertainty 555
12.3 \tThe Distribution of Random Variables 555
12.4 \tEvaluation of Projects with Discrete Random Variables 559
12.5 \tEvaluation of Projects with Continuous Random Variables 568
12.6 \tEvaluation of Risk and Uncertainty by Monte Carlo Simulation 573
12.7 \tPerforming Monte Carlo Simulation with a Computer 577
12.8 \tDecision Trees 581
12.9 \tReal Options Analysis 586
12.10 \tSummary 589
CHAPTER 13
The Capital Budgeting Process \t597
13.1 Introduction \t598
13.2 Debt Capital \t600
13.3 Equity Capital \t601
13.4 The Weighted Average Cost of Capital (WACC) \t604
13.5 \tProject Selection 608
13.6 \tPostmortem Review 612
13.7 \tBudgeting of Capital Investments and Management Perspective 613
13.8 \tLeasing Decisions 614
13.9 \tCapital Allocation 616
13.10 \tSummary 622
14 CONTENTS
CHAPTER 14
Decision Making Considering Multiattributes 626
附录及索引
14.1 Introduction 627
14.2 Examples of Multiattribute Decisions 627
14.3 Choice of Attributes 629
14.4 Selection of a Measurement Scale 629
14.5 Dimensionality of the Problem 630
14.6 Noncompensatory Models 630
14.7 Compensatory Models 635
14.8 Summary 643
Appendix A Accounting Fundamentals 649 Appendix B Abbreviations and Notation 659 Appendix C Interest and Annuity Tables for Discrete Compounding 663 Appendix D Interest and Annuity Tables for Continuous Compounding 682 Appendix E Standard Normal Distribution 686 Appendix F Selected References 689 Appendix G Solutions to Try Your Skills 692 Appendix H Answers to Selected Problems 733
Index 737