PRINCIPLES OF ENGINEERING ECONOMY

This is a book about a particular type of decision making. It explains the principles and techniques needed for making decisions about the acquisition and retirement of capital goods by industry and government. Normally, such decisions should be made on grounds of long-run economy. Because engineers make many such decisions and make recommendations for many others, the body of principles and techniques relating to them has been called "engineering economy." The same concepts and methods that are helpful in guiding decisions about investments in capital goods are useful in certain kinds of decisions between alternative types of financing. Applications to these other areas of decision making are also discussed in this book. It can serve as a working manual for engineers, management personnel, government officials, and others whose duties require them to make decisions about investments in capital goods. The underlying philosophy regarding comparisons of alternatives is the same as in previous editions. As before, continued emphasis throughout the book is placed on the following two important points: (1) It is prospective differences between alternatives that are relevant in their comparison. (2) The fundamental question regarding a proposed investment in capital goods is whether the investment is likely to be recovered plus a return commensurate with the risk and with the return obtainable from other opportunities for the use of limited resources. The purpose of calculations that involve the time value of money should be to answer this question.

  • Corporate Authors:

    Ronald Press Company

    79 Madison Avenue
    New York, NY  USA  10016
  • Authors:
    • Grant, E L
    • Ireson, W G
  • Publication Date: 1970

Media Info

  • Pagination: 640 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00041629
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 15 1974 12:00AM