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.
Ronald Press Company79 Madison Avenue
New York, NY United States 10016
- Grant, E L
- Ireson, W G
- Publication Date: 1970
- Pagination: 640 p.
- TRT Terms: Budgeting; Capital; Cash flow; Decision making; Depreciation; Engineering economy; Present value
- Old TRIS Terms: After tax rate of return; Increment costs; Sunken costs
- Subject Areas: Administration and Management; Finance; Railroads;
- Accession Number: 00041629
- Record Type: Publication
- Files: TRIS
- Created Date: Jun 15 1974 12:00AM