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Fundamentals of Engineering Economics (2nd Edition) By Chan S. Park
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From the Back Cover
ABOUT FUNDAMENTALS OF ENGINEERING ECONOMICS
About the Author
Chan S. Park is currently a Professor of Industrial and Systems Engineering at Auburn University. He received the M.S. and Ph.D. degrees in industrial engineering from Purdue University and the Georgia Institute of Technology, respectively. Over his 25-year academic career, he has been actively involved in a variety of areas of research, teaching, and professional consulting. His work has been recognized internationally in the fields of engineering economics, strategic and economic decisions within service sectors, financial engineering (real options valuation), risk analysis, and capital budgeting. He also authored or coauthored leading textbooks on the related subjects, including Contemporary Engineering Economics (Prentice Hall), and Advanced Engineering Economics (John Wiley & Sons). He is the Editor-in-Chief of the journal The Engineering Economist and is a licensed Professional Engineer.
Excerpt. © Reprinted by permission. All rights reserved.
Why Fundamentals of Engineering Economics?
Engineering economics is one of the most practical subject matters in the engineering curriculum, but it is always challenging and an everchanging discipline. Contemporary Engineering Economics (CEE) was first published in 1993, and since then we have tried to reflect changes in the business world in each new edition, along with the latest innovations in education and publishing. These changes have resulted in a better, more complete textbook, but one that is much longer than it was originally intended. This may present a problem: today, covering the textbook in a single term is increasingly difficult. Therefore, we decided to create Fundamentals of Engineering Economics (FEE) for those who like Fundamentals but think a smaller, more concise textbook would better serve their needs.
Goals of the TextThis text aims not only to provide sound and comprehensive coverage of the concepts of engineering economics, but also to address the practical concerns of engineering economics. More specifically, this text has the following goals:
This text is intended for use in the introductory engineering economics course. Unlike the larger textbook (CEE), it is possible to cover FEE in a single term, and perhaps even to supplement it with a. few outside readings or cases. Although the chapters in FEE are arranged logically, they are written in a flexible, modular format, allowing instructors to cover the material in a different sequence.
Steps Taken to Streamline the TextbookWe decided to streamline the textbook by retaining the depth and level of rigor in CEE, while eliminating some less critical topics in each chapter. This resulted in reducing the total number of chapters by four chapters in two steps. Such core topics as the time value of money, measures of investment worth, development of project cash flows, and the relationship between risk and return are still discussed in great detail.
FEE is significantly different from CEE, but most of the chapters will be familiar to users of CEE. Although we pruned some material and clarified, updated, and otherwise improved all of the chapters, FEE should still be regarded as an alternative version of CEE.
Features of the BookAlthough FEE is a streamlined version of CEE, we did retain all of the pedagogical elements and supporting materials that helped make CEE so successful. Some of the features are:
The companion website (http://www.prenhall.com/park) has been created and maintained by the author. This text takes advantage of the Internet as a tool that has become an increasingly important resource medium used to access a variety of information on the Web. This website contains a variety of resources for both instructors and students, including sample test questions, supplemental problems, and various on-line financial calculators. As you type the address and click the open button, you will see the Fundamentals of Engineering Economics Home Page. Each menu item is explained as follows:
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