This work examines the most important techniques for analyzing the profitability of capital investments. It discusses time value mechanics and financial concepts, including discounted cash flow, return on investment, incremental analysis, cash flow tables, income taxes, depreciation, cost of capital and risk analysis. It provides a broad introduction to project evaluation and data needs.;This book is intended for: cost, project, design, mechanical, chemical, industrial,electronic,electrical and construction engineers; project and budget managers; cost estimators and controllers; planners and schedulers; and upper-level undergraduate and graduate students in these disciplines.
Part 1 Concepts and Inputs: Projectability Concepts; Evaluation Types and Data Needs; Depreciation and Income Taxes; Comparing Individual Project and Corporate Returns. Part 2 Discounted Cash Flow Calculations: Discounted Cash Flow Techniques; Comparing Alternatives; Handling Inflation; Replacement Cost and Lease Analysis; Risk Analysis by Project Sensitivities; Other Risk Analysis Techniques; Shortcut Techniques for Economic Evaluations. Part 3 Reporting Results: Types of Economic Reports; Postinstallation Appraisals; Case Problem. Appendices: Glossary of Selected Financial Terms; Accounting Financial Statements; Cost of Capital; AACE Classification System for Economic Appraisals; Nondiscounted Techniques; Inflation Theory; Deviation of Shortcut Correlation Equations; Instructions for Preparing an Appraisal Report; Solution to the Case Problem. Discount Factor Tables.