Computational Economic Analysis for Engineering and Industry: 1st Edition (Hardback) book cover

Computational Economic Analysis for Engineering and Industry

1st Edition

By Adedeji B. Badiru, Olufemi A. Omitaomu

CRC Press

304 pages | 107 B/W Illus.

Purchasing Options:$ = USD
Hardback: 9780849374777
pub: 2007-06-07
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Description

Recent global anxiety indicates that more focus needs to be directed at economic issues related to industry. Conventional techniques often do not adequately embrace the integrated global factors that affect unique industries and industry focused computational tools have not been readily available. Until now. Computational Economic Analysis for Engineering and Industry presents direct computational tools, techniques, models, and approaches for economic analysis with a specific focus on industrial and engineering processes.

Here are just a few of the topics you'll find:

  • New economic analysis models and techniques

  • Tent-shaped cash flows

  • Industrial economic analysis

  • Project-based economic measures

  • Profit ratio analysis

  • Equity break-even point

  • Utility based analysis

  • Project-balance analysis

  • Customized ENGINEA software tool

  • Engineering conversion factors

    The authors supply downloadable software, ENGINEA, that allows you to easily perform the various techniques outlined in the text, such as investment justification, breakeven analysis, and replacement analysis. Providing a high-level presentation of economic analysis of the unique aspects of industrial processes, they integrate mathematical models, optimization, computer analysis, and managerial decision processes. A comprehensive treatment of economic analysis considering the specific needs of industry, the book is a pragmatic alternative to conventional economic analysis books.

  • Table of Contents

    APPLIED ECONOMIC ANALYSIS

    Cost- and Value-Related Definitions

    Economics of Worker Assignment

    Economics of Resource Utilization

    Minimum Annual Revenue Requirement (MARR) Analysis

    COST CONCEPTS AND TECHNIQUES

    Project Cost Estimation

    Cost Monitoring

    Project Balance Technique

    Cost and Schedule Control Systems Criteria

    Sources of Capital

    Commercial Loans

    Bonds and Stocks

    Interpersonal Loans

    Foreign Investment

    Investment Banks

    Mutual Funds

    Supporting Resources

    Activity-Based Costing

    Cost, Time, and Productivity Formulas

    Practice Problems for Cost Concepts and Techniques

    FUNDAMENTALS OF ECONOMIC ANALYSIS

    The Economic Analysis Process

    Simple and Compound Interest Rates

    Investment Life for Multiple Returns

    Nominal and Effective Interest Rates

    Cash-Flow Patterns and Equivalence

    Compound Amount Factor

    Present Worth Factor

    Uniform Series Present Worth Factor

    Uniform Series Capital Recovery Factor

    Uniform Series Compound Amount Factor

    Uniform Series Sinking Fund Factor

    Capitalized Cost Formula

    Permanent Investments Formula

    Arithmetic Gradient Series

    Increasing Geometric Series Cash Flow

    Decreasing Geometric Series Cash Flow

    Internal Rate of Return

    Benefit/cost ratio

    Simple Payback Period

    Discounted Payback Period

    Fixed and Variable Interest Rates

    Practice Problems for Fundamentals of Economic Analysis

    ECONOMIC METHODS FOR COMPARING INVESTMENT ALTERNATIVES

    Net Present Value Analysis

    Annual Value Analysis

    Internal Rate of Return Analysis

    Incremental Analysis

    Guidelines for Comparison of Alternatives

    Practice Problems: Comparing Investment Alternatives

    ASSET REPLACEMENT AND RETENTION ANALYSIS

    Considerations for Replacement Analysis

    Terms of Replacement Analysis

    Economic Service Life (ESL)

    Replacement Analysis Computation

    Practice Problems for Replacement and Retention Analysis

    DEPRECIATION METHODS

    Terminology of Depreciation

    Depreciation Methods

    Practice Problems: Depreciation Methods

    Break-even analysis

    Profit Ratio Analysis

    Practice Problems: Break-Even Analysis

    EFFECTS OF INFLATION AND TAXES

    Mild Inflation

    Moderate Inflation

    Severe Inflation

    Hyperinflation

    Foreign-Exchange Rates

    After-Tax Economic Analysis

    Before-Tax and After-Tax Cash Flow

    Effects of Taxes on Capital Gain

    After-Tax Economic Analysis

    Practice Problems: Effects of Inflation and Taxes

    ADVANCED CASH-FLOW ANALYSIS TECHNIQUES

    Amortization of Capitals

    Introduction to Tent Cash-Flow Analysis

    Special Application of AGS

    Design and Analysis of Tent Cash-Flow Profiles

    Derivation of General Tent Equation

    MULTIATTRIBUTE INVESTMENT ANALYSIS AND SELECTION

    The Problem of Investment Selection

    Utility Models

    The Analytic Hierarchy Process

    Investment Benchmarking

    References

    BUDGETING AND CAPITAL ALLOCATION

    Top-Down Budgeting

    Bottom-Up Budgeting

    Mathematical Formulation of Capital Allocation

    THE ENGINEA SOFTWARE: A TOOL FOR ECONOMIC EVALUATION

    The ENGINEA Software

    The Excel Spreadsheet Functions

    Reference

    COST BENCHMARKING CASE STUDY

    Abstract

    Introduction

    Basis of the Methodology

    Evaluation Baselines

    Data Collection Processes

    Analysis of the Factors

    Conclusions and Recommendations

    Reference

    Appendix A: Definitions and Terms

    Appendix B: Engineering Conversion Factors

    Appendix C: Computational and Mathematical Formulae

    Appendix D: Units of Measure

    Appendix E: Interest Factors and Tables

    Index

    About the Series

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    Subject Categories

    BISAC Subject Codes/Headings:
    BUS101000
    BUSINESS & ECONOMICS / Project Management
    TEC009000
    TECHNOLOGY & ENGINEERING / Engineering (General)
    TEC029000
    TECHNOLOGY & ENGINEERING / Operations Research