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Book Summary
Engineering Economic Analysis is a comprehensive textbook that teaches the principles of economic decision-making for engineering projects. It covers time value of money, cost estimation, depreciation, taxes, inflation, and risk analysis. The 14th edition includes updated examples and case studies, making it a standard resource for engineering students and professionals seeking to evaluate project alternatives and make sound financial decisions.
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About Engineering Economic Analysis
Engineering Economic Analysis by Newnan, Lavelle, Eschenbach, and Lewis is a widely adopted textbook that provides a thorough introduction to the economic evaluation of engineering projects. The book covers fundamental concepts such as time value of money, cash flow analysis, present worth, annual worth, rate of return, and benefit-cost analysis. It also addresses depreciation, income taxes, inflation, replacement analysis, and risk and uncertainty. The 14th edition incorporates contemporary examples, updated data, and practical case studies that connect theory to real-world engineering decisions. Each chapter includes learning objectives, worked examples, and end-of-chapter problems to reinforce understanding. The text emphasizes a systematic approach to comparing alternatives and making informed economic choices in engineering design and management. It is suitable for undergraduate and graduate courses in engineering economics and serves as a valuable reference for practicing engineers preparing for professional exams.
Who should read Engineering Economic Analysis?
This book is essential for undergraduate and graduate engineering students taking a course in engineering economics or engineering management. It is also highly recommended for practicing engineers, project managers, and technical professionals who need to evaluate the financial viability of engineering projects. Additionally, it serves as a comprehensive study resource for those preparing for the Fundamentals of Engineering (FE) or Principles and Practice of Engineering (PE) exams, as well as for professionals in construction, manufacturing, and public works who make capital investment decisions.
Pros & Cons
Pros
- ✓ Comprehensive coverage of engineering economic principles and applications.
- ✓ Clear explanations and numerous worked examples that aid understanding.
- ✓ Updated content with contemporary case studies and real-world data.
- ✓ End-of-chapter problems provide ample practice for students.
- ✓ Well-structured for both classroom use and self-study.
Cons
- ✗ Some readers may find the mathematical derivations challenging without prior background.
- ✗ The book is lengthy and can be dense for casual readers.
- ✗ Certain examples may be more relevant to specific engineering disciplines.
- ✗ The price of a new edition can be high for students.
- ✗ Supplementary online resources may require additional access codes.
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Frequently asked questions
What is the latest edition of Engineering Economic Analysis?
The 14th edition is the latest, published by Oxford University Press. It includes updated examples, data, and coverage of contemporary topics.
Is this book suitable for self-study?
Yes, the book is designed with clear explanations, worked examples, and end-of-chapter problems that make it suitable for self-study, although some prior knowledge of engineering or economics may be helpful.
Does the book cover risk and uncertainty?
Yes, there is a dedicated chapter on risk and uncertainty, including sensitivity analysis, probability concepts, and decision trees.
Are there online resources or software included?
Some editions may include access to online resources or spreadsheet templates, but availability depends on the purchase format. Check the product details for specific inclusions.
Is this book useful for FE/PE exam preparation?
Yes, many engineering economics topics covered in the book are part of the FE and PE exams, making it a valuable study resource.
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