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Engineering Economy (12th Edition)

by: William G. Sullivan; Elin M. Wicks; James Luxhoj

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Retail Price: $107.95

Publisher: PRENTICE HALL,Dec-2002

Category: ENGINEERING Level:

ISBN: 0130673382
ISBN13: 9780130673381

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      Is the design/device technically feasible? What does it cost/will it pay for itself? Practicing engineers are routinely faced with these crucially important questions. To answer the first question, engineers draw upon their technical skills, which have been carefully honed through courses in engineering science/design as well as by professional experience. The second question is often more difficult for engineers to answer affirmatively. This may be true because economic principles were addressed only as an afterthought in their engineering coursework, or possibly not at all! Those students who were fortunate enough to have taken a course in engineering economy have little difficulty answering the 'Will it pay...?' question, which is frequently just as important a question as 'Will it work?' This statement strikes many engineering students as unbelievable; yet later on, their professional careers will be significantly affected by their ability to deal competently with the economic aspects of engineering.

  This twelfth edition of Engineering Economy provides exciting insights and thought-provoking inquiries into the principles, concepts, and techniques of engineering economy. The primary audience for this text is undergraduate students in engineering. As in previous editions, the twelfth edition reflects current theory and practice in the file of engineering economy by way of comprehensive and lucid content. In this edition an attempt has been made to demonstrate how the analysis of alternatives and the ability to earn an adequate return on capital investments are related to the well-being of flourishing and profitable enterprises.

  New Features in Engineering Economy, 12e:

  A new Chapter 15 dealing with multiattibuted decision making

Expanded coverage of cost estimating in Chapter 7

Economic principles of engineering design now included in Chapter 2

A completely rewritten Chapter 9 on Replacement Analysis

Internet Boxes, which direct students to additional information on the internet

The companion website has been updated. It can be found at this address:


  For instructors, new Microsoft PowerPoint slides contain all the figures from the book, updated Excel spreadsheet templates, sample test questions, and an engineering economy tutorial that includes green engineering examples.

Table of Contents


      1. Introduction to Engineering Economy.

2. Cost Concepts and Design Economics.

3. Money-Time Relationships and Equivalence.


      4. Applications of Money-Time Relationships.

5. Comparing Alternatives.

6. Depreciation and Income Taxes.

7. Cost Estimation Techniques.

8. Price Changes and Exchange Rates.

9. Replacement Analysis.

10. Dealing with Uncertainty.


      11. Evaluating Projects with the Benefit/Cost Ratio Method.

12. Engineering Economy Studies in Investor-Owned Utilities.

13. Probabilistic Risk Analysis.

14. Capital Financing and Allocation.

15. Dealing with Multiattributed Decisions.