This book is intended for undergraduate engineering students taking the introductory engineering economics course at the university level.
The fourth edition of Contemporary Engineering Economics has been thoroughly revised and updated while continuing to adopt a contemporary approach to the subject, and teaching, of engineering economics. This text aims not only to build a sound and comprehensive coverage of engineering economics, but also to address key educational challenges, such as student difficulty in developing the analytical skills required to make informed financial decisions.
As in the first two editions, Park's Contemporary Engineering Economics, 3e stimulates student enthusiasm and imagination with the use of real-world applications and contexts throughout the book in chapter opening scenarios, homework problems, and self-test questions.
New features in the third edition: - All sections are updated to reflect the latest tax laws, interest rates, and other financial developments.
- The chapters are now organized into five parts. Three new chapters (Chapters 2, 3, and 6) have been added.
- Chapter 2 (Understanding Financial Statements) introduces the basics of business language, known as financial accounting, so that engineers can understand and speak in a common language when it comes to making a variety of business decisions.
- Chapter 3 (Cost Concepts and Behaviors) covers the various cost definitions as well as their behaviors in decision making. In particular, it discusses the marginal concept, which is the basis for many economic decisions.
- Chapter 6 (Principles of Investing) unravels the mysteries of the financial markets—the language, the players, the strategies, and above all, the risks and rewards of investments, as well as their ups and downs.
- Chapter 7 (Present Worth Analysis) streamlines the principles of comparing mutually exclusive projects in detail.
- Chapter 14 (Project Risk and Uncertainty) has been expanded to include decision tree analysis.
- Chapter 15 (Replacement Decisions) has been divided into two parts: The first part introduces the basic replacement decision problems without considering the effects of income taxes, whereas the second part revisits the same decision problems with income tax consideration.
A comprehensive book website has been developed for study guides and additional information, as well as student and instructor resources. The section, "Computer Notes," previously appearing as an end-of-chapter feature, is now consolidated onto the website. Various spreadsheets can be downloaded from the website and opened directly in Microsoft® Excel for Windows.
