PREFACE
We live in a sea of economic decisions. —Anonymous
Proudly serving engineering educators and students for over 75 years
About Engineering Economy
A succinct job description for an engineer consists of two words: problem solver. Broadly speaking, engineers use knowledge to .nd new ways of doing things economically. Engineering design solutions do not exist in a vacuum but within the context of a business opportunity. Given that every problem has multiple solutions, the issue is, How does one rationally select the design with the most favorable economic result? The answer to this question can also be put forth in two words: engineering economy. Engineering economy provides a systematic framework for evaluating the economic aspects of competing design solutions. Just as engineers model the stress on a support column, or the thermodynamic response of a steam turbine, they must also model the economic impact of their recommendations.
Engineering economy—what is it, and why is it important? The initial reaction of many engineering students to these questions is, “Money matters will be handled by someone else. They are not something I need to worry about.” In reality, any engineering project must be not only physically realizable but also economically affordable. This book is about how to make smart economic choices.
Understanding and applying economic principles to engineering have never been more important. Engineering is more than a problem-solving activity focusing on the development of products, systems, and processes to satisfy a need or demand. Beyond function and performance, solutions must also be viable economically. Design decisions affect limited resources such as time, material, labor, capital, and natural resources, not only initially (during conceptual design) but also through the remaining phases of the life cycle (e.g., detailed design, manufacture and distribution, service, retirement, and disposal). A great solution can die a certain death if it is not pro.table.
. MyLab Engineering is available with Engineering Economy, 17/e and provides a powerful homework and test manager which lets instructors create, import, and manage online homework assignments, quizzes, and tests that are automatically
16 PREFACE
graded. You can choose from a wide range of assignment options, including time limits, proctoring, and maximum number of attempts allowed. The bottom line: MyLab Engineering means less time grading and more time teaching.
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Automatically graded and algorithmic-generated homework assignments, quizzes, and tests that directly correlate to the textbook.
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Automatic grading that tracks students’ results.
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Assignable Auto-Graded Excel Projects let students master key Excel skills within the application and receive immediate feedback on their work.
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Interactive “Help Me Solve This” tutorials provide opportunity for point-of-use help and more practice.
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Learning Objectives mapped to ABET outcomes provide comprehensive reporting tools.
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Video Solutions are available to help explain concepts or walk students through example exercises from the book.
What’s New to This Edition?
Our intent in revising the text is to continue integrating computer technology and realistic examples to facilitate learning engineering economy. Here are the highlights of changes made in the publication of the seventeenth edition:
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Approximately half of all end-of-chapter problems have been replaced with fresh, new problems.
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The “Try Your Skills” problem sets at the end of Chapters 1 through 8 have been doubled in problem count. “Try Your Skills” problem sets have also been added for Chapters 9 through 11.
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Appendix A, a description of accounting fundamentals, has been rewritten and added to the book.
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Group in-class problem exercises have been added to the majority of chapters in the seventeenth edition. These exercises are ideal for in-class, team-based problem solving with three to four students in each group.
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Appendix H, which features answers to selected end-of-chapter problems, has been added to this new edition.
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Problem-solution videos have been updated and expanded. These videos provide students with step-by-step solution methods and demonstrate both by-hand and spreadsheet solutions. These complement the MyLab Engineering software that has been a popular feature of previous editions.
Strategies of This Book
This book has two primary objectives: (1) to provide students with a sound understanding of the principles, basic concepts, and methodology of engineering economy; and (2) to help students develop pro.ciency with these methods and with the process for making rational decisions they are likely to encounter in professional practice. Interestingly, an engineering economy course may be a student’s only college
PREFACE 17
exposure to the systematic evaluation of alternative investment opportunities. In this regard, Engineering Economy is intended to serve as a text for classroom instruction and as a basic reference for use by practicing engineers in all specialty areas (e.g., chemical, civil, computer, electrical, industrial, and mechanical engineering). The book is also useful to persons engaged in the management of technical activities.
This book is written to appeal to engineering students with a wide variety of personal interests and majors. Our students are like most college students, varied in their educational and career interests and eager for challenging work that will inspire them. The explanations and examples in the book are student-centered and eminently practical in real-life situations. In addition, multimedia resources are available online in MyLab Engineering for students and instructors looking to supplement the print book’s contents.
As a textbook, the seventeenth edition is written principally for the .rst formal course in engineering economy. A three-credit-hour semester course should be able to cover the majority of topics in this edition, and there is suf.cient depth and breadth to enable an instructor to arrange course content to suit individual needs. Representative syllabi for a three-credit and a two-credit semester course in engineering economy are provided in Table P-1. Moreover, because several advanced topics are included, this book can also be used for a second course in engineering economy.
All chapters and appendices have been revised and updated to re.ect current trends and issues. Also, numerous exercises that involve open-ended problem statements and iterative problem-solving skills are included throughout the book. A large number of the 750-plus end-of-chapter exercises are new, and many solved examples representing realistic problems that arise in various engineering disciplines are presented.
In the 21st century, the world is turning over a new leaf for environmental sustainability. We have worked hard to capture this spirit in many of our examples and end-of-chapter problems. In fact, more than 160 “green” problems and examples have been integrated throughout this edition. They are listed in the Green Content section following the Preface.
FE Practice Problems are included to help prepare engineering students for milestone examinations similar to the Fundamentals of Engineering written examination in the United States and a few other countries.
It is generally advisable to teach engineering economy at the upper division level. Here, an engineering economy course incorporates the accumulated knowledge students have acquired in other areas of the curriculum and also deals with iterative problem solving, open-ended exercises, creativity in formulating and evaluating feasible solutions to problems, and consideration of realistic constraints (economic, aesthetic, safety, etc.) in problem solving.
Also available to adopters of this edition is an instructor’s solutions manual and other classroom resources. In addition, PowerPoint visual aids are readily available to instructors. Visit www.pearsonglobaleditions.com for more information.
