1st Edition

Engineering Economics of Life Cycle Cost Analysis

By John Vail Farr, Isaac Faber Copyright 2019
    378 Pages
    by CRC Press

    378 Pages 146 B/W Illustrations
    by CRC Press

    Engineering has changed dramatically in the last century. With modern computing systems, instantaneous communication, elimination of low/mid management, increased complexity, and extremely efficient supply chains, all have dramatically affected the responsibilities of engineers at all levels. The future will require cost effective systems that are more secure, interconnected, software centric, and complex. Employees at all levels need to be able to develop accurate cost estimates based upon defensible cost analysis. It is under this backdrop that this book is being written.

    By presenting the methods, processes, and tools needed to conduct cost analysis, estimation, and management of complex systems, this textbook is the next step beyond basic engineering economics.


    • Focuses on systems life cycle costing

    • Includes materials beyond basic engineering economics, such as simulation-based costing

    • Presents cost estimating, analysis, and management from a total ownership cost perspective

    • Offers numerous real-life examples

    • Provides excel based textbook/problems

    • Offers PowerPoint slides, Solutions Manual, and author website with downloadable excel solutions, etc.

    1. Overview of Systems Life Cycle Costing. Section: 1. The Mathematics of Engineering Economy. 2. The Science of Engineering Economics: Understanding the Time Value of Money. 3. Advanced Economic Analysis of Alternatives. 4. The Basic Theory of Interest. 5. Simulation-Based Costing. 6. Life Cycle Framework and Techniques. Section: 2. Estimation of complex Systems. 7. Costing of Complex Systems. 8. Software-Intensive Systems. 9. Cost Estimating Techniques. Section: 3. Cost Management. 10. Costing and Managing Off-the-Shelf Systems. 11. Project Management’s Role in Life Cycle Costing. 12. Use of Cost Metrics and Ratios. Appendix. Interest Factors.


    John Vail Farr, Isaac J. Faber