Engineering Economics - ebook

Fouad Sabry is the former Regional Head of Business Development for Applications at Hewlett Packard (HP) for Southern Europe, Middle East, and Africa. Fouad has received his Bachelor of Science (B.Sc.) of Computer Systems and Automatic Control, dual master’s degrees, Master of Business Administration (MBA) and Master of Management in Information Technology (MMIT), from University of Melbourne (MoU) in Australia. Fouad has more than 25 years of experience in Information and Communication Technologies (ICT), working in local, regional, and international companies, such as Vodafone and international business machines (IBM). Currently, Fouad is an entrepreneur, author, futurist, focused on Emerging Technologies, and Industry Solutions, and founder of one billion knowledge (1BK) community.Engineering Economics: A Gateway to Informed Decision-Making and Success

Are you ready to embark on a journey through the dynamic and interconnected realms of engineering and economics? "Engineering Economics" is your definitive guide, inviting you to explore a world where these two disciplines converge, and where the power of informed decision-making shapes the future of projects, industries, and businesses. This book is your compass, guiding you through a comprehensive understanding of economic principles within the context of engineering, and equipping you with the knowledge and tools to maximize value, optimize resources, and navigate the complexities of our rapidly evolving world.

Discover the Intersection of Engineering and Economics:

The book commences by introducing you to the pivotal concept of opportunity cost, the foundation upon which sound economic decisions are built. Whether you're a budding engineer or a seasoned professional, understanding opportunity cost is essential, as it forms the basis for assessing trade-offs, evaluating decisions, and ensuring that every resource, from time to materials, is utilized to its fullest potential.

Navigating the Waters of Cash Flow:

Cash flow is a critical component of every project, investment, and decision. This book takes you on a journey through the intricacies of cash flow analysis, a crucial skill for evaluating the financial feasibility of projects. You'll learn how to calculate, interpret, and use cash flow information to make informed choices, ensuring that your engineering endeavors are not only technically robust but also financially sound.

Delving into Advanced Concepts:

As your understanding deepens, "Engineering Economics" delves into advanced economic principles that are indispensable for professionals across diverse engineering domains. The book explores topics such as net present value, cost of capital, and business valuation, providing you with the tools to assess the economic viability of projects and make investment decisions that maximize returns. These advanced concepts are presented in a clear, accessible manner, making them applicable to various real-world scenarios.

Minimizing Risk and Maximizing Return:

The journey continues by delving into the concept of the minimum acceptable rate of return, a crucial aspect of financial decision-making. You'll learn how to assess project feasibility, navigate the complexities of risk and return, and ensure that investments meet or exceed your established financial benchmarks. This knowledge is vital for professionals seeking to safeguard investments and drive profitability.

Real-World Application:

The true strength of "Engineering Economics" lies in its real-world applicability. Each chapter is filled with practical examples, case studies, and exercises that illuminate economic theory and demonstrate how to apply it to actual engineering projects. Whether you're a civil engineer managing infrastructure ventures, a technology professional innovating in a dynamic sector, or a decision-maker in any engineering domain, this book equips you with the knowledge and skills necessary to thrive.

Accessible to All:

This book is designed to meet the needs of diverse readers. It accommodates those who are new to the field, providing an engaging introduction to economic principles, and also caters to experienced professionals looking to enhance their expertise. Its progressive structure and clear language ensure that everyone can benefit, regardless of their prior knowledge.

Transforming Your Understanding:

"Engineering Economics" is not just about mastering economics; it's about transforming the way you think, analyze, and act in your professional life. It unites financial acumen with engineering expertise to create a synergy that can drive success in any engineering endeavor. Whether you're an aspiring engineer, an experienced professional, or a decision-maker, this book offers you the tools to become more informed, effective, and valuable in your field.

The Path to Excellence:

In conclusion, "Engineering Economics" is your gateway to unlocking the immense potential that economic insights hold for engineers. With its engaging style, practical examples, and progressive approach, it promises to be your trusted companion on your journey to mastering the art of engineering economics. Get your copy today and embark on a transformative journey through the world of engineering economics. Whether you're shaping the future of civil engineering, technology, construction, or any other engineering domain, the principles in this book will empower you to make decisions that lead to excellence and success. Don't miss this opportunity to enrich your knowledge and career; start your journey today with "Engineering Economics."Dedication

To all the engineers, students, and visionaries who dare to dream, calculate, and create, this book is dedicated to you. It is a tribute to your passion for innovation and your unwavering commitment to solving real-world problems through the lens of economics.

In the pages that follow, we have poured our hearts and minds into distilling the complexities of engineering economics into a format that is accessible, enlightening, and empowering. Our dedication is not only to the knowledge contained within these pages but also to the endless possibilities that your journey in engineering economics holds.

To the engineers who toil endlessly, making calculations and decisions that shape the world we live in, we salute your dedication. This book is dedicated to you, as you grapple with cost analyses, investment appraisals, and financial forecasts to ensure that every bridge is strong, every power plant efficient, and every innovation economically viable.

To the students who seek knowledge, who are embarking on a path of discovery, and who are eager to understand the economic dynamics underpinning the engineering marvels of the past, present, and future, this dedication is for you. We hope this book becomes a trusted companion in your educational journey.

To the dreamers and visionaries who see beyond the constraints of today, who envision a world where engineering solutions meet economic sustainability, this dedication is for you. We believe that the principles and insights shared within these pages will fuel your imagination and innovation.

To the future engineers, who may not yet realize the profound impact they will have on our world, this dedication is a testament to the endless possibilities that await you. As you turn these pages and absorb the knowledge, remember that you hold the keys to a future where engineering and economics intertwine to build a better, more sustainable world.

This book is dedicated to all those who dare to dream and have the courage to translate those dreams into reality. It is an offering to the curious, the thinkers, the doers, and the builders. We invite you to embark on this journey through "Engineering Economics" with open hearts and open minds. The insights you gain here will not only expand your horizons but will also equip you to shape a future where engineering and economics blend harmoniously, ensuring a world that is both technically advanced and financially sustainable.

With deepest appreciation and dedication,

Fouad SabryEpigraph

"Economics is a vital thread woven into the fabric of engineering, shaping every decision and every innovation. It is the foundation on which we build a sustainable future, where resources are optimized, costs are minimized, and benefits are maximized."

In the realm of engineering economics, we find inspiration from the fusion of engineering and economics. These two disciplines, while distinct, intertwine seamlessly to create the marvels that define our modern world. This epigraph serves as a testament to the intricate dance between technical expertise and economic wisdom that underlies the engineering projects that surround us.

"Economic efficiency is not just a financial concept; it's a path to a better, more sustainable future. Engineers armed with the principles of economics can transform our world, making it not only functional but also fiscally responsible."

As you turn the pages of "Engineering Economics," you will uncover the power of economic efficiency in engineering. The choices we make, the designs we implement, and the projects we undertake are all touched by the hand of economics. It is our hope that this book will empower you to navigate this landscape with skill and foresight, ultimately driving change and innovation.

"To be an engineer is to be an agent of progress. To be an engineer who understands economics is to be a steward of progress."

This book is an invitation to become a steward of progress. Engineering, at its core, is about improving the world around us. By embracing the principles of economics, you will not only be a creator of solutions but also a guardian of resources. The path of an engineer is, in many ways, a path of stewardship, and we hope this epigraph resonates with your own aspirations in the field of engineering.

"In the intersection of numbers and innovation, we find the heart of engineering economics. It is a place where calculators and creativity coexist, where the pursuit of progress meets the realities of budget constraints."

Within these pages, you will encounter the intriguing juncture where numbers and innovation converge. Engineering economics is more than just balance sheets and cost estimates; it is the realm of creative problem-solving within the constraints of budgets and resources. We invite you to explore this dynamic space and discover how economics elevates engineering to new heights.

"The future belongs to those who can engineer not only solutions but also prosperity. Welcome to the world of engineering economics, where innovation meets investment, and where every project becomes an opportunity."

We believe that the future belongs to those who can navigate the intricacies of engineering economics. The projects you undertake are not just solutions to technical challenges; they are opportunities to create prosperity and sustainability. As you embark on this journey through "Engineering Economics," we hope you embrace the possibilities it offers and find the inspiration to make a difference in the world.

With a shared vision for the role of economics in engineering, we invite you to delve into the pages of this book and explore the profound connection between these two disciplines. We hope that the epigraph resonates with your own aspirations and that you will join us in this exploration of "Engineering Economics."

Warmest regards,

Fouad SabryForeword

Welcome to "Engineering Economics," a journey through the fascinating intersection of engineering and economics. As the author of this book, I am both honored and excited to introduce you to the realm where numbers meet innovation, where cost-benefit analysis shapes progress, and where every engineering decision carries the potential for economic transformation.

The Power of Economics in Engineering

Engineering is a world of imagination and creation, where ideas transform into real solutions that drive the evolution of our societies. However, within the core of every engineering endeavor lies an economic reality. This reality can be an asset, an ally, and an inspiration as we endeavor to make the world more efficient, sustainable, and prosperous.

In "Engineering Economics," we explore the economic principles and methodologies that engineers can harness to make more informed decisions, optimize resources, and build a future where technological marvels harmonize with fiscal responsibility. This book is not just for engineers; it is for anyone who is intrigued by the role of economics in shaping our world. The principles you'll encounter within these pages are not abstract; they are practical tools to enhance the viability of projects, the sustainability of innovations, and the overall welfare of our society.

Engineering for a Sustainable Tomorrow

We stand at a pivotal moment in history, where engineering and economics hold the keys to addressing some of the most pressing challenges of our time. Sustainability, resource allocation, and economic efficiency are not just buzzwords; they are the linchpins of a better, more prosperous world. "Engineering Economics" serves as a roadmap to navigate these challenges. It is your guide to understanding the economics of renewable energy, green infrastructure, and technologies that can reshape our world for the better.

A Holistic Approach to Knowledge

In this book, we journey through the principles of opportunity cost, cash flow analysis, net present value, and many other concepts that will empower you to approach engineering projects with a holistic perspective. We bridge the gap between theoretical knowledge and practical application, making it a valuable resource for students, practitioners, and innovators alike. Whether you're in the early stages of your engineering career or a seasoned professional, the principles you'll find here are universally applicable and evergreen.

Join the Engineering Economics Revolution

As we venture through the chapters of this book, I invite you to engage actively with the content, ask questions, and explore how the concepts can be applied to real-world scenarios. While the book provides a strong foundation, your curiosity and creativity will take you to new horizons. By the end of this journey, you'll have the tools to engineer solutions that not only work technically but also thrive economically.

"Engineering Economics" is more than a textbook; it's an invitation to become a participant in the economic engineering revolution. It's a call to action for you to be a part of the change, to create a future where innovation and investment go hand in hand, and where every engineering project becomes an opportunity for transformation.

Thank you for embarking on this journey with us. I look forward to witnessing the impact you'll make, the solutions you'll engineer, and the prosperity you'll help create. The future of engineering and economics is in your hands.

Warmest regards,

Fouad SabryPreface

Welcome to the world of "Engineering Economics." This book is the culmination of a journey through the intricate interplay of engineering and economics. It is designed to empower you, whether you are a student beginning your educational voyage or a seasoned professional seeking to enhance your decision-making abilities. We understand that the merging of these two dynamic fields is no small feat, and we are here to guide you through every step of the way.

In the early stages of our engineering careers, many of us were focused solely on the technical aspects of our projects. It's easy to get caught up in the world of calculations, design, and problem-solving. However, we soon realized that success in the engineering domain goes beyond technical prowess; it extends to our ability to make economically sound decisions. The purpose of this book is to provide you with the knowledge and tools needed to bridge the gap between the engineering and economic aspects of projects and endeavors.

The importance of economic analysis in the field of engineering cannot be overstated. It's not just about understanding the numbers; it's about knowing how to use them effectively to drive projects forward. Throughout this book, we will explore economic concepts such as opportunity cost, cash flow, net present value, cost of capital, and business valuation in a way that is both educational and practical. We aim to instill in you the ability to assess the feasibility of engineering projects, make informed investment decisions, and maximize value.

What sets "Engineering Economics" apart is its commitment to real-world application. We have filled its pages with case studies, practical examples, and exercises to help you understand and apply economic concepts in the context of engineering. Whether you are managing infrastructure projects, working in technology, or any other engineering domain, you'll find that the principles and insights within these pages are universally relevant.

This book is designed to be accessible to a wide range of readers. We recognize that not everyone comes to this subject with the same background or level of expertise. As such, we've structured the content to cater to beginners and experienced professionals alike. Whether you're new to the field or looking to refine your skills, you'll find this book to be a valuable resource.

In closing, we invite you to embark on this educational journey with us, exploring the world of engineering economics. By the end of this book, you will not only have a solid understanding of the subject but also a new perspective on the role economics plays in engineering. Our goal is to help you make informed decisions, optimize resources, and ultimately enhance your professional journey. Thank you for choosing "Engineering Economics," and we look forward to sharing this enlightening experience with you.Acknowledgements

In embarking on this enlightening journey through the world of engineering economics, we are indebted to countless individuals whose contributions and unwavering support have made this book a reality. We want to express our profound gratitude to these remarkable people who have illuminated our path.

First and foremost, we extend our heartfelt appreciation to the passionate educators and practitioners who have dedicated their lives to the study and application of engineering economics. Your insights, experience, and dedication have been our guiding stars, and this book is a tribute to your wisdom.

We would also like to acknowledge the tireless efforts of the countless researchers and authors whose work forms the foundation of this book. Your pioneering contributions have paved the way for a deeper understanding of economic principles in engineering contexts, and we are honored to carry that torch forward.

Our profound gratitude extends to our families and friends for their unwavering support and encouragement throughout this challenging but rewarding endeavor. Your patience, love, and understanding have been our constant motivation and source of strength.

Additionally, we are deeply thankful to the open-source community, which has made a wealth of knowledge accessible to all. Your commitment to the free exchange of information has played a pivotal role in shaping this book and fostering a spirit of learning without barriers.

Last but certainly not least, we want to express our appreciation to you, the reader. Your curiosity and desire to explore the intricacies of engineering economics inspire us to share our knowledge. We hope that this book becomes a valuable companion on your quest for understanding this fascinating field, and we encourage you to delve into the pages that follow with enthusiasm and an open mind.

We sincerely hope that the contents of this book resonate with you and provide a solid foundation for your exploration of engineering economics. It has been a labor of love, and it is with great humility and gratitude that we present this work to you. Thank you for being a part of this journey with us.

Sincerely,

Fouad SabryIntroduction

Welcome to the exciting world of "Engineering Economics." In the following pages, we embark on a journey that will not only expand your understanding of economics but also empower you to make better decisions in the field of engineering. Whether you're a student seeking a solid foundation in engineering economics or a professional striving to enhance your decision-making abilities, this book is your key to unlocking the economic intricacies that shape the engineering world.

In today's dynamic and interconnected global landscape, the fusion of engineering and economics is more critical than ever. Our introduction to this subject begins with the fundamental concept of opportunity cost, a cornerstone of economic analysis. Understanding the concept of opportunity cost is crucial, as it forms the basis for evaluating the trade-offs that engineers and decision-makers face daily. This knowledge will enable you to make decisions with a clear understanding of what is gained and what is forgone.

As you delve deeper into the world of engineering economics, you will encounter the essential notion of cash flow. We explore how cash flow analysis is integral to assessing the financial viability of projects, making informed investment decisions, and steering engineering initiatives towards profitability. This introduction sets the stage for the exploration of more advanced topics, such as net present value and cost of capital, which are instrumental in making investment decisions that maximize returns.

Our journey extends to concepts like business valuation and the minimum acceptable rate of return, providing you with the tools to assess project feasibility, make informed investment choices, and confidently navigate the complex financial landscape of the engineering industry. These insights are invaluable for anyone working in the field, from civil engineers overseeing infrastructure projects to technology professionals developing innovative solutions.

Our aim is to make this often complex subject accessible and engaging. We have drawn upon real-world examples and case studies to illustrate key concepts and provide practical applications. Each chapter is designed to build your expertise gradually, ensuring that both beginners and experienced professionals can benefit from the content within.

In the pages that follow, you will not only gain a strong grasp of engineering economics but also cultivate a newfound appreciation for the pivotal role economics plays in shaping engineering projects and decision-making. We invite you to join us on this educational adventure, and we promise to be your guide every step of the way. By the end of this journey, you'll have the knowledge and confidence to tackle real-world engineering challenges, optimize resources, and make decisions that lead to success. Thank you for choosing "Engineering Economics," and we look forward to sharing this enlightening journey with you.Editorial Reviews

"The engineer's first problem in any design situation is to discover what the problem really is." - Unknown

"The real problem is what to do with the problem solvers after the problems are solved." - Gay Talese

"The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency." - Bill Gates

"The engineer has been, and is, a maker of history." - James Kip Finch

"The economic philosophy of the future is to be based on the idea of the efficiency of the technical means for achieving the ends of economic policy." - Friedrich von Hayek

"Engineering or technology is all about using the power of science to make life better for people, to reduce cost, to improve comfort, to improve productivity, etc." - N. R. Narayana Murthy

"The human foot is a masterpiece of engineering and a work of art." - Leonardo da Vinci

"The engineer is the key figure in the material progress of the world. It is his engineering that makes a reality of the potential value of science by translating scientific knowledge into tools, resources, energy, and labor to bring them into the service of man." - Richard Nixon

"Economics is extremely useful as a form of employment for economists." - John Kenneth Galbraith

"The ideal engineer is a composite... He is not a scientist, he is not a mathematician, he is not a sociologist or a writer; but he may use the knowledge and techniques of any or all of these disciplines in solving engineering problems." - Nathan W. DoughertyPrologue

In the world of engineering, the path to innovation and progress is paved with both technical ingenuity and sound economic acumen. It's a synergy of disciplines that propels ideas into reality and transforms the way we interact with our environment. Welcome to the prologue of "Engineering Economics," a journey that uncovers the powerful interplay of engineering and economics, offering you the keys to make informed, value-driven decisions.

Imagine a world where the choices you make in engineering projects are not only technologically sound but also financially savvy. Where you not only solve complex problems but also optimize resources, enhance sustainability, and drive profitability. This world exists, and it's the world we invite you to explore.

The prologue of our journey begins with the recognition that every decision in engineering carries an economic dimension. It is a realization that, beyond the equations and blueprints, lies a financial landscape that can determine the success or failure of your projects. Through the pages of this book, you will become adept at navigating this landscape, understanding the economic implications of your choices, and wielding the power of economic analysis to drive projects forward.

Economic analysis is not an isolated skill but an essential part of the engineer's toolkit. Just as we design and build, we also calculate, estimate, and forecast. We evaluate the costs and benefits, weigh the risks and rewards, and make choices that impact individuals, communities, and the world at large. The prologue serves as an introduction to this multifaceted skill set, and in the chapters that follow, you will find a comprehensive exploration of economic principles within the realm of engineering.

This book is not just for students pursuing engineering degrees; it's for professionals across various engineering domains. Whether you're designing sustainable infrastructure, creating groundbreaking technology, or contributing to global innovations, economic understanding will set you apart. We understand that not everyone comes to this subject with the same background, and thus, we've crafted this book to be accessible to both beginners and experienced practitioners. It's a resource designed to enrich your knowledge and empower your career.

In this prologue, we invite you to embark on a transformative journey. It's a journey that will reveal the true potential of economic insights in the field of engineering. As we delve into concepts like opportunity cost, cash flow analysis, net present value, cost of capital, and business valuation, you will gain the skills to assess project feasibility, make investment decisions, and maximize returns.

Thank you for joining us on this journey, and we promise that the exploration of "Engineering Economics" will not only deepen your understanding of the subject but also provide you with a valuable perspective on the role economics plays in the realm of engineering. This book is your gateway to a world where economic analysis empowers engineers to make decisions that enhance the present and shape the future. So, let's begin this enlightening adventure together.Brief Overview

Welcome to the world of "Engineering Economics." In this comprehensive guide, we will take you on a journey through 21 thought-provoking chapters, each delving into a vital aspect of this dynamic field. Whether you're a seasoned engineer, a budding student, or someone with a general interest in economics and its application to engineering, this book promises to be your gateway to understanding the intricacies of making sound economic decisions in an engineering context.

Engineering Economics: We begin with the foundation, providing an overview of the key concepts, methodologies, and principles that underpin the study of engineering economics.

Perfect Competition: Chapter two introduces you to the world of perfect competition, explaining how market structures impact engineering projects.

Opportunity Cost: Learn the fundamental economic concept of opportunity cost and how it plays a pivotal role in project evaluation and decision-making.

Cash Flow: Explore the critical topic of cash flow, understanding how it drives economic analysis in engineering.

Net Present Value: Dive deep into the concept of net present value, a cornerstone in project evaluation, and see how it can guide investment decisions.

Index of Economics Articles: Discover a wealth of resources and references to broaden your understanding of economics, enhancing your grasp of engineering economics.

Fixed Capital: Chapter seven explores the notion of fixed capital and its implications in economic analysis for long-term engineering projects.

Cost: Unpack the various facets of costs involved in engineering projects and their impact on profitability and decision-making.

Health Economics: Understand how health economics intertwines with engineering, a vital aspect often overlooked, but increasingly important.

Valuation (Finance): Delve into the intricate world of financial valuation, a skillset essential for any engineer making investment decisions.

Cost of Capital: Examine the cost of capital and its significance in assessing the financial viability of engineering projects.

Rate of Profit: Chapter twelve delves into the concept of the rate of profit, an essential metric in evaluating project profitability.

Business Valuation: Gain insights into the methodologies used to value businesses, a critical skill in the world of engineering economics.

Equivalent Annual Cost: Learn about equivalent annual cost, a useful metric for comparing projects with different lifespans.

International Business: Explore the global dimension of engineering economics, as we touch upon international business and its economic implications.

Minimum Acceptable Rate of Return: Understand the concept of the minimum acceptable rate of return and its role in project assessment.

Profit (Economics): This chapter deepens your understanding of economic profit and how it relates to engineering economics.

Constant Capital: Dive into the concept of constant capital and how it affects long-term engineering investments.

Surplus Value: Explore the notion of surplus value, a concept often associated with economic profitability.

Glossary of Economics: As a reference, we provide a comprehensive glossary to aid you in understanding the economic terms used throughout the book.

Engineering Economics (Civil Engineering): Finally, we explore the specific applications of engineering economics in the realm of civil engineering.

We invite you to embark on this enlightening journey through the pages of "Engineering Economics." Each chapter is designed to build your expertise in a particular aspect of this fascinating field, providing you with the knowledge and tools to make informed decisions and optimize economic outcomes in your engineering projects.From the Inside Flap

Welcome to "Engineering Economics," a groundbreaking exploration of the nexus between engineering and economics that promises to revolutionize the way you approach your projects and career. This book is your gateway to mastering the critical skill of economic analysis in the field of engineering. Whether you're a student, an experienced engineer, or a decision-maker, this comprehensive guide will empower you to make more informed choices, optimize resource allocation, and elevate your expertise to a new level.

Unlocking the Secrets of Decision-Making:

In the heart of engineering projects lies the art of effective decision-making. "Engineering Economics" will equip you with the tools, knowledge, and confidence to make sound decisions that are not only technically robust but also financially savvy. From assessing the feasibility of a new venture to evaluating project proposals, this book will guide you through the economic dimensions of engineering, enhancing your ability to assess and mitigate risks.

Practical Wisdom for Real-World Challenges:

The power of this book lies in its real-world applicability. Each chapter is a treasure trove of real-life examples, case studies, and exercises that ground economic theory in practical scenarios. You'll learn how to calculate net present value, navigate the complexities of cost of capital, and understand the intricacies of business valuation, all in the context of engineering projects. The knowledge you gain here will give you the edge in your career, enabling you to stand out in a competitive industry.

Adaptable to Your Needs:

We understand that the journey of learning and professional growth is unique for everyone. "Engineering Economics" is designed to cater to a broad audience, from those taking their first steps in the field to seasoned experts looking to refine their skills. Its progressive structure, accessible language, and engaging style ensure that no matter where you are on your journey, you can benefit from its wealth of knowledge.

This book is not just about mastering economics; it's about transforming the way you think, analyze, and act. Whether you're in civil engineering, technology, construction, or any other engineering domain, the principles of economic analysis are universally valuable. "Engineering Economics" opens the door to a new era of decision-making in engineering, where financial acumen and engineering expertise unite to create success.

Don't miss out on this opportunity to enrich your knowledge and career. Acquire your copy of "Engineering Economics" and embark on a transformative journey through the world of engineering economics. Your path to becoming a more informed, effective, and valuable engineer starts here.From the Back Cover

Unlock the Power of Engineering Economics!

Are you looking to transform your understanding of economics within the context of engineering? Look no further! "Engineering Economics" is your essential guide to mastering the art of optimizing engineering projects, enhancing your decision-making skills, and maximizing value in an ever-evolving world. Written by an expert in the field, this book is a must-have for students, professionals, and enthusiasts seeking a comprehensive yet approachable resource.

Discover a Seamless Fusion of Engineering and Economics:

Imagine a world where you can seamlessly integrate engineering principles with economic insights. This book takes you on a journey through the essential concepts that bridge these two dynamic domains. Whether you are an aspiring engineer, a seasoned professional, or simply curious about the intersection of these fields, "Engineering Economics" has something valuable to offer.

Real-World Relevance:

One of the most compelling features of this book is its focus on real-world applicability. Each chapter is packed with practical examples, case studies, and exercises that bring economic theory to life. You'll learn how to apply economic analysis to engineering projects, evaluate the financial feasibility of your ideas, and make data-driven decisions that drive success in your professional endeavors.

Comprehensive Coverage:

The book's extensive coverage leaves no stone unturned. From the fundamentals of opportunity cost and cash flow to advanced topics such as net present value, cost of capital, and business valuation, you'll gain a well-rounded understanding of engineering economics. Whether you're working on infrastructure projects, civil engineering endeavors, or technology innovations, the insights you'll glean from these pages are indispensable.

Access for All:

We understand that every reader is unique. That's why "Engineering Economics" is designed to cater to a broad audience. Whether you're a novice taking your first steps in this field or an expert seeking to refine your skills, this book adapts to your knowledge level. Its accessible language, clear explanations, and progressive structure ensure that everyone can benefit from its content.

In conclusion, "Engineering Economics" is your gateway to unlocking the immense potential that economic insights hold for engineers. Let this book be your trusted companion on your journey to mastering the art of engineering economics. With its engaging style and practical approach, you'll gain the knowledge and confidence to tackle complex projects and make informed decisions that lead to success. Don't miss out on this opportunity to transform your understanding of engineering economics. Get your copy today and embark on a path to excellence in the world of engineering!From the Author

Dear Readers,

Welcome to the fascinating world of "Engineering Economics." It is my immense pleasure to introduce you to this comprehensive exploration of the economic principles that underpin the field of engineering. As the author of this book, I am excited to share my knowledge and passion for this subject with you. Whether you are a student seeking a strong foundation in engineering economics or a professional looking to enhance your decision-making skills, this book is designed to meet your needs.

Engineering economics is the bridge that connects the realms of engineering and finance, and in today's dynamic world, it has never been more critical. In this book, I aim to provide you with a clear and practical understanding of the key concepts and tools that will help you make informed decisions, optimize resources, and maximize value. From the fundamentals of opportunity cost and cash flow to the intricacies of net present value and cost of capital, this book will equip you with the skills to tackle real-world engineering challenges.

My goal as an author is to make this often complex subject approachable and engaging. I have drawn upon my experience as an educator and practitioner to craft a text that is not only informative but also enjoyable to read. You will find real-life examples, case studies, and exercises that will illustrate the concepts discussed and allow you to apply them to various scenarios.

Moreover, I believe in the power of accessibility and inclusivity in education. This book is structured to cater to readers at various levels of familiarity with the topic, ensuring that both beginners and experienced professionals can benefit from its content. I encourage you to embark on this educational journey with me, and I promise to be your guide every step of the way. Whether you are exploring the principles of perfect competition, understanding business valuation, or delving into civil engineering economics, each chapter is a building block that will enrich your knowledge and decision-making abilities.

In conclusion, I invite you to embark on this enlightening journey through the realm of engineering economics with me as your companion. I am confident that by the end of this book, you will not only have a solid grasp of the subject but also a newfound appreciation for the role of economics in engineering. I hope you find this book not only informative but also inspiring. Thank you for choosing "Engineering Economics," and I look forward to sharing this educational adventure with you.

Warm regards,

Fouad SabryTable of Contents

Chapter 1: Engineering economics

Chapter 2: Perfect competition

Chapter 3: Opportunity cost

Chapter 4: Cash flow

Chapter 5: Net present value

Chapter 6: Index of economics articles

Chapter 7: Fixed capital

Chapter 8: Cost

Chapter 9: Health economics

Chapter 10: Valuation (finance)

Chapter 11: Cost of capital

Chapter 12: Rate of profit

Chapter 13: Business valuation

Chapter 14: Equivalent annual cost

Chapter 15: International business

Chapter 16: Minimum acceptable rate of return

Chapter 17: Profit (economics)

Chapter 18: Constant capital

Chapter 19: Surplus value

Chapter 20: Glossary of economics

Chapter 21: Engineering economics (civil engineering)

Epilogue

Glossary

Appendix

About the Author