This book directs the engineering manager or the undergraduate student preparing to become an engineering manager, who is or will become actively engaged in the management of economic-risk trade-off decisions for engineering investments within an organizational system. In today’s global economy, this may mean managing the economic risks of engineering investments across national boundaries in international organizations, government, or service organizations. As such, this is an applied book. The book’s goal is to provide an easy to understand, up to date, and coherent treatment of the management of the economic-risk trade-offs of engineering investments. This book accomplishes this goal by cumulatively sequencing knowledge content from foundational economic and accounting concepts to cost estimating to the traditional engineering economics knowledge culminating in fundamental engineering managerial economic decision-making incorporating risk into engineering management economic decisions.

The authors cover two general topics: basic engineering economics and risk analysis in this text. Within the topic of engineering economics are discussions on the time value of money and interest relationships. These interest relationships are used to define certain project criteria that are used by engineers and project managers to select the best economic choice among several alternatives. Projects examined will include both income- and service-producing investments. The effects of escalation, inflation, and taxes on the economic analysis of alternatives are discussed. Risk analysis incorporates the concepts of probability and statistics in the evaluation of alternatives. This allows management to determine the probability of success or failure of the project. Two types of sensitivity analyses are presented. The first is referred to as the range approach while the second uses probabilistic concepts to determine a measure of the risk involved. The authors have designed the text to assist individuals to prepare to successfully complete the economics portions of the Fundamentals of Engineering Exam. Table of Contents: Introduction / Interest and the Time Value of Money / Project Evaluation Methods / Service Producing Investments / Income Producing Investments / Determination of Project Cash Flow / Financial Leverage / Basic Statistics and Probability / Sensitivity Analysis

Risk Analysis in Engineering and Economics is required reading for decision making under conditions of uncertainty. The author describes the fundamental concepts, techniques, and applications of the subject in a style tailored to meet the needs of students and practitioners of engineering, science, economics, and finance. Drawing on his extensive e

More than any other book available, Risk Analysis in Engineering and Economics introduces the fundamental concepts, techniques, and applications of the subject in a style tailored to meet the needs of students and practitioners of engineering, science, economics, and finance. Drawing on his extensive experience in uncertainty and risk modeling and analysis, the author leads readers from the fundamental concepts through the theory, applications, and data requirements, sources, and collection. He emphasizes the practical use of the methods presented and carefully examines the limitations, advantages, and disadvantages of each. Case studies that incorporate the techniques discussed offer a practical perspective that helps readers clearly identify and solve problems encountered in practice. If you deal with decision-making under conditions of uncertainty, this book is required reading. The presentation includes more than 300 tables and figures, more than 100 examples, many case studies, and a wealth of end-of-chapter problems. Unlike the classical books on reliability and risk assessment, this book helps you relate underlying concepts to everyday applications and better prepares you to understand and use the methods of risk analysis.

The rise of the information age and the digital economy has dramatically changed engineering and other technology-driven fields. With tremendous advances in computing and communication systems, major organizational upheavals, all fueled by complexity, globalization, short cycle times, and lean supply chains, the functions of engineers have significantly changed. Engineers and similar professionals must be technically savvy and have product management and costing skills all while working in a distributed and often unstable environment. This new-edition textbook is updated to cover the integration of cost, risk, value, scheduling, and informationtechnologies going beyond basic engineering economics. Engineering Economics of Life Cycle Cost Analysis, Second Edition, offers a systems and life cycle or total ownership cost perspective. It presents advanced costing techniques such as simulation-based costing, decision and risk analysis, complex systemscosting, software, big data, and cloud computing estimation. Examples and problems demonstrating these techniques with real-world applications are also included. All engineers and similar professionals will find this book useful, but it is mainly written for systems engineers, engineering managers, program/product managers, and industrial engineers. The text can serve as a professional reference or for use with graduate courses on advanced engineering economic analysis and cost management, and financial analysis for engineers.