In the first edition of this book we said:
This book is designed to teach the fundamental concepts of engineering economy to
engineers. By limiting the intended audience to engineers it is possible to provide an
expanded presentation of engineering economic analysis and do it more concisely than
if the book were written for a wider audience.Our goal was, and still is, to provide an easy to understand and up-to-date presentation
of engineering economic analysis. That means the book's writing style must promote the
reader's understanding. We most humbly find that our approach has been well received
by engineering professors-and more importantly-by engineering students through eight
previous editions.
This edition has significant improvements in coverage:
.Appendix 7A (Difficultiesin Solving for an Interest Rate) has been thoroughly revised
to use the power of spreadsheets to identify and resolve multiple root problems.
.Chapter 10 (Probability and Uncertainty) has been completely rewritten to empha-
size how to make good choices by considering the uncertainty that is part of every
engineering economy application.
.Chapter 12 (Income Taxes) has been updated to reflect 2003 tax legislation and rates.. Chapter 13 (Replacement Analysis) has been rewritten to clarify the comparison of
existing assets with newer alternatives.
.Chapter 18 (Accounting and Engineering Economy) has been added in response to
adopter requests.
In this edition, we have also made substantial changes to increase student interest and
understanding. These include:
.Chapter-opening vignettes have been added to illustrate real-world applications of
the questions being studied.
.Chapter learning objectives are included to help students check their comprehension
of the chapter material.
.The end-of-chapter problems have been reorganized and updated thr0tlghout.
.The interior design is completely reworked, including the use of color, to improve
readability and facilitate comprehension of the material.xvii