Badiru / Omitaomu Computational Economic Analysis for Engineering and Industry

Erscheinungsjahr 2010
ISBN: 978-1-4200-0758-9
Verlag: Taylor & Francis
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 304 Seiten

Reihe: Industrial Innovation Series

Recent global anxiety indicates that more focus needs to be directed at economic issues related to industry. Conventional techniques often do not adequately embrace the integrated global factors that affect unique industries and industry focused computational tools have not been readily available. Until now. Computational Economic Analysis for Engineering and Industry presents direct computational tools, techniques, models, and approaches for economic analysis with a specific focus on industrial and engineering processes.

Here are just a few of the topics you'll find:

- New economic analysis models and techniques

- Tent-shaped cash flows

- Industrial economic analysis

- Project-based economic measures

- Profit ratio analysis

- Equity break-even point

- Utility based analysis

- Project-balance analysis

- Customized ENGINEA software tool

- Engineering conversion factors

The authors supply downloadable software, ENGINEA, that allows you to easily perform the various techniques outlined in the text, such as investment justification, breakeven analysis, and replacement analysis. Providing a high-level presentation of economic analysis of the unique aspects of industrial processes, they integrate mathematical models, optimization, computer analysis, and managerial decision processes. A comprehensive treatment of economic analysis considering the specific needs of industry, the book is a pragmatic alternative to conventional economic analysis books.

Zielgruppe

Industrial engineers, manufacturing engineers, operations research engineers, cost engineers, project management engineers, production engineers, engineering economists and risk engineers; engineers, technical managers, and students in all fields of engineering and in all industries.

Autoren/Hrsg.

Badiru, Adedeji B.

Omitaomu, Olufemi A.

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Bereichsspezifisches Management Kostenmanagement, Budgetierung

Inhaltsverzeichnis

APPLIED ECONOMIC ANALYSIS
Cost- and Value-Related Definitions

Economics of Worker Assignment

Economics of Resource Utilization

Minimum Annual Revenue Requirement (MARR) Analysis

COST CONCEPTS AND TECHNIQUES
Project Cost Estimation
Cost Monitoring

Project Balance Technique

Cost and Schedule Control Systems Criteria

Sources of Capital

Commercial Loans

Bonds and Stocks

Interpersonal Loans

Foreign Investment

Investment Banks
Mutual Funds

Supporting Resources
Activity-Based Costing
Cost, Time, and Productivity Formulas
Practice Problems for Cost Concepts and Techniques

FUNDAMENTALS OF ECONOMIC ANALYSIS
The Economic Analysis Process
Simple and Compound Interest Rates
Investment Life for Multiple Returns

Nominal and Effective Interest Rates
Cash-Flow Patterns and Equivalence

Compound Amount Factor
Present Worth Factor

Uniform Series Present Worth Factor

Uniform Series Capital Recovery Factor

Uniform Series Compound Amount Factor

Uniform Series Sinking Fund Factor
Capitalized Cost Formula
Permanent Investments Formula

Arithmetic Gradient Series

Increasing Geometric Series Cash Flow

Decreasing Geometric Series Cash Flow
Internal Rate of Return
Benefit/cost ratio

Simple Payback Period

Discounted Payback Period

Fixed and Variable Interest Rates

Practice Problems for Fundamentals of Economic Analysis

ECONOMIC METHODS FOR COMPARING INVESTMENT ALTERNATIVES

Net Present Value Analysis

Annual Value Analysis
Internal Rate of Return Analysis

Incremental Analysis

Guidelines for Comparison of Alternatives

Practice Problems: Comparing Investment Alternatives

ASSET REPLACEMENT AND RETENTION ANALYSIS
Considerations for Replacement Analysis
Terms of Replacement Analysis
Economic Service Life (ESL)

Replacement Analysis Computation

Practice Problems for Replacement and Retention Analysis

DEPRECIATION METHODS
Terminology of Depreciation
Depreciation Methods

Practice Problems: Depreciation Methods

Break-even analysis
Profit Ratio Analysis
Practice Problems: Break-Even Analysis

EFFECTS OF INFLATION AND TAXES
Mild Inflation
Moderate Inflation

Severe Inflation
Hyperinflation

Foreign-Exchange Rates

After-Tax Economic Analysis

Before-Tax and After-Tax Cash Flow

Effects of Taxes on Capital Gain

After-Tax Economic Analysis

Practice Problems: Effects of Inflation and Taxes

ADVANCED CASH-FLOW ANALYSIS TECHNIQUES

Amortization of Capitals

Introduction to Tent Cash-Flow Analysis
Special Application of AGS
Design and Analysis of Tent Cash-Flow Profiles
Derivation of General Tent Equation

MULTIATTRIBUTE INVESTMENT ANALYSIS AND SELECTION

The Problem of Investment Selection

Utility Models

The Analytic Hierarchy Process

Investment Benchmarking
References

BUDGETING AND CAPITAL ALLOCATION
Top-Down Budgeting
Bottom-Up Budgeting

Mathematical Formulation of Capital Allocation

THE ENGINEA SOFTWARE: A TOOL FOR ECONOMIC EVALUATION

The ENGINEA Software

The Excel Spreadsheet Functions

Reference

COST BENCHMARKING CASE STUDY

Abstract
Introduction

Basis of the Methodology

Evaluation Baselines

Data Collection Processes

Analysis of the Factors
Conclusions and Recommendations
Reference

Appendix A: Definitions and Terms
Appendix B: Engineering Conversion Factors

Appendix C: Computational and Mathematical Formulae
Appendix D: Units of Measure
Appendix E: Interest Factors and Tables

Index