ABSTRACT

This book introduces engineers to the formulas and techniques for performing engineering economic analysis. In addition to creating designs, engineers also evaluate the economic viability of their designs. If there are multiple design alternatives, each alternative is analyzed to determine which alternative is the most cost-effective, economical, and profitable design. For private projects, engineers are required to design the most profitable project, and government projects need to be the most beneficial project to the public. Members of society rely on engineers to design structurally safe projects and products, but they also have to meet the requirements of clients or the public and generate reasonable profits or benefits. Engineering economic analysis techniques help engineers to evaluate each project as part of the process of providing economically feasible designs to their clients and the public.