Applied Economic Analysis for Technologists, Engineers, and Managers

This book provides a practical approach to making integrated financial decisions in contemporary organizations. While mathematics is used throughout, the focus of this text is the application of the math techniques in real-world settings. 'Examples, Questions, Problems, and Discussion Cases balance quantitative analysis, team based decisions, technical factors, and qualitative information.' *Presents the details and interrelationships of Traditional Engineering Economy Techniques (65% of book); basic organizational financial statements and accounting concepts (20% of book); and contemporary and team approaches to cost reduction, Continuous Profit Improvement, Quality Economics, Measuring Financial Results, and Total Financial Management (15% of book). *Covers applied engineering economics topics and decision making techniques with examples. Time value of money techniques are explained using diagrams, equations, tables, and software applications. Examples cover engineering design, process engineering, construction, manufacturing, software, non-manufacturing and service industries, and personal applications. *Provides a basis for financial and technical decision making grounded in an understanding of organizational financial concepts and engineering economy principles, financial statements, accounting and cash flow concepts. These are presented using a simple accounting equation and time value of money approach that is easily understood by non-financial students, managers, and technical personnel. *Presents current techniques such as measuring financial results, continuously improving profits and reducing costs, quality economics, and Total Financial Management that are used in making contemporary financial decisions by teams of engineers, managers, technicians, operating, and financial personnel. *Provides practical applications of the interrelationships among engineering economy techniques, continuous improvement of costs and profits, and basic financial/accounting concepts. *Provides applications of these techniques that individuals can use in making personal financial decisions. Among the topics discussed and analyzed are loans, investments, mortgages, and others. *Each chapter analyzes real-life examples and situations. By providing models for on-the-job financial improvements and decisions, the book is a useful tool for students as well as working engineers and managers. *Incorporates a number of pedagogical aids into the text. Among these are key terms and definitions; key learning concepts; an introduction and summary in each chapter; examples, calculations, and solutions of each concept; over 400 review questions; 300 problems; and 50 Discussion Case Problems.

Table of Contents:
I. FINANCIAL CONCEPTS 1. Introduction to Financial Decisions 2. Introduction to Financial Statements 3. The Accounting Equation - Depreciation, Inventory, and Cash Flow II. FINANCIAL ANALYSIS AND TIME VALUE OF MONEY 4. Return on Investment and Single Payment Calculations 5. Annual Amount and Gradient Functions 6. Annual Amount Applications 7. Analyzing, Selecting, Monitoring, and Evaluating Projects and Investments III. FINANCIAL DECISION MAKING 8. Breakeven Analysis 9. Minimum Cost Analysis 10. Replacement Analysis 11. Taxes IV. CONTINUOUS FINANCIAL IMPROVEMENT 12. Economics of Quality 13. Continuous Financial Improvement Epilogue Appendix A: Answers to Odd-Numbered Problems Appendix B: Interest Tables Appendix C: Effective Interest Rates Index