Schaum's Outline of Theory and Problems of Engineering Economics

I bought this book to help me study for the fundamentals of engineering exam. My school didn't require an engineering economics course, so this was my first exposure to the material. The material was concise and easy to understand. Within four chapters I knew everything I needed to know for the FE exam. It was good enough that it inspired me to buy Schaums's Outlines for several other topics.

The best thing about this outline, particularly the second half, is the use of real-world examples to illustrate the use of equations. Lots of Engineering Economy texts either fail to explain the equations sufficiently, or they lack examples of varying complexity so that the student can really test their knowledge of the subject. This outline bridges that gap and would make an excellent study guide for anyone enrolled in an Engineering Economy class. Just don't think it can stand alone as a textbook on the subject. The first five chapters are very basic, starting with the calculation of simple interest and continuing through continuous compounding and continuous payments. Chapter three is rather interesting, showing how algebra and linear interpolation can be used to calculate various values if they fall between two tabulated values. It's a simple enough concept, but it is often omitted in textbooks on engineering economy. Chapter six turns to more advanced topics, starting with economic equivalence and determining at what time money transactions actually occur based on the fact that money changes value with time. Chapter 7 treats several valuation methods which are useful in deciding among economic alternatives. Chapter 8 acts as a sequel and is devoted to techniques that are primarily used for analyzing proposed capital investments. Chapter nine reaches back to the concept of the MARR (Minimum Acceptable Rate of Return) first discussed in chapter six and discusses in detail the best way to allocate a given budget among several competing projects. Chapters 10 and 11 discuss the related issues of equipment replacement and retirement, depreciation, and taxes. The outline shows how to determine if a piece of equipment has reached a point beyond which it has become uneconomical to operate it even if the equipment is still "running". Chapter 12 is a capstone chapter in the book in that it bridges the gap between the specific techniques presented in the first eleven chapters and investment decisions made in the real world. Chapter twelve is thus concerned with the presentation of a feasability analysis to a lending institution. Highly recommended as a study guide.

This is a good compendium of pills and problems useful for practicing and for quick reviewing engineering economics concepts. It does not, however, stands alone as a book on the subject because it lacks unity and completeness in its treatment. The book was helpful for me to revisit some points and to clarify a few others, and I think that was the main purpose of the authors. For the price it is a very good deal.

Very useful for the Industrial Engineering student or someone interest in engineering economics. It had many typical situations that help in evaluating engineering projects.