ABSTRACT
The basic engineering economic analysis techniques presented in Chapter 2 can be used for simple comparison of alternatives. To conduct meaningful analysis, however, we must address the effects of taxes, time value of money, and depreciation of capital assets. This is often referred to as after-tax analysis. After-tax analysis is vital for the selection and optimization of projects and program portfolios. After-tax consists mainly of developing income and cash flow statements. It is important that engineers possess a fundamental understanding of their effects when planning and executing programs.
