SOLUTION
INSTRUCTOR’S
SOLUTION MANUAL
F0R FUNDAMENTALS
OF ENGINEERING
ECONOMICS, SECOND
EDITION
1
,SOLUTION
Instructor Solutions Manual T o Accompany Fundamentals Of Engineering Economics, Second Edition, By Chan S. Park.
Isbn-13: 9780132209618. © 2008 Pearson Education, Inc., Upper Saddle River, Nj. All Rights Reserved.
T his Material Is Protected By Copyright And Written Permission Should Be Obtained From The Publisher Prior To Any Prohibited Reproduction, Storage In A
Retrieval System, Or T ransmission In Any Form Or By Any Means, Electronic, Mechanical, Photocopying, Recording, Or Likewise.
2
,SOLUTION
Contents
Preface
Chapter 1 Engineering Economic Decisions
Chapter 2 Time Value Of Money
Chapter 3 Understanding Money Management
Chapter 4 Equivalence Calculations Under
Inflation Chapter 5 Present-Worth Analysis
Chapter 6 Annual Equivalence Analysis
Chapter 7 Rate-Of-Return Analysis
Chapter 8 Accounting For Depreciation And Income
Taxes Chapter 9 Project Cash Flow Analysis
Chapter 10 Handling Project Uncertainty
Chapter 11 Replacement Decisions
Chapter 12 Benefit-Cost Analysis
Chapter 13 Understanding Financial Statements
3
, SOLUTION
Preface
This Instructor's Manual To Fundamentals Of Engineering Economics, 2 nd Edition Contains Detailed
Solutions To All The End-Of-Chapter Problems (Except Some Open-Ended Case Problems). The
Problem Solutions Follow Topical Headings Listed In The Main Text To Indicate The Generic Content
Of Each Problem. The Headings Are Provided To Aid You In Selecting Your Preferred Mix Of Problem
Types For Homework Assignments.
Companion Book Website
Two Important Resources Are Available From The Book’s Companion Website Under ―Instructor
Recourse Center‖ At Http://Www.Prenhall.Com/Park.
Instructor’ Manual – Each End-Of-Chapter Problems Can Be Downloaded From This Website.
Each Chapter Solutions Come In Two File Formats: One In Microsoft Word File Format And
The Other In Pdf Format. In Creating Many Mathematical Equations Th e Word Files, I Used
The Mathtype™ Equation Editor (Version 6.0) From Design Science. If You Have Not
Installed This Mathtype™ On Your Pc, Some Of The Characters May Not Be Displaced
Correctly. If That Is The Case, Just Open The Pdf Version The File.
A Comprehensive Set Of Lecture Notes In Powerpoint Format Is Also Available To Instructors
Who Adopt The Text.
Solutions Provided In Excel Worksheet
Fundamentals Of Engineering Economics Contains Nearly 493 Problems Including 41 Short -
Case Assignment Problems. Many Of Them Come With Multiple-Part Questions, Bringing The
Total Number Of Questions To Nearly 900.
The Problems Listed Under ``Short Case Studies With Excel" Require More Involved
Assumptions, Solution Steps, And Calculations.
Many Of The Excel Worksheets In Word Files Appear As ―Microsoft Excel Worksheet Object,‖
So Just Place The Cursor Over The Worksheet Area And Double-Click Will Convert Them Into
Live Excel Worksheet. This Will Allow You To Modify The Solution And Answer Many What -
If Questions.
Some Deviations In Answers
Your Independent Solutions To The Text Problems May Yield Answers Slightly Different From
Mine Due To Rounding Differences. In Some Cases, The Interpretations And Assumptions
Students Bring To The Problems May Differ From My Own In Creating Them, Again Resulting
In Different Answers.
Some Of The Answers (Not The Procedures) To The End-Of-Chapter Problems Are Posted
In The Book's Companion Website, So That Students Can Check The Answers On Their
Own.
4
INSTRUCTOR’S
SOLUTION MANUAL
F0R FUNDAMENTALS
OF ENGINEERING
ECONOMICS, SECOND
EDITION
1
,SOLUTION
Instructor Solutions Manual T o Accompany Fundamentals Of Engineering Economics, Second Edition, By Chan S. Park.
Isbn-13: 9780132209618. © 2008 Pearson Education, Inc., Upper Saddle River, Nj. All Rights Reserved.
T his Material Is Protected By Copyright And Written Permission Should Be Obtained From The Publisher Prior To Any Prohibited Reproduction, Storage In A
Retrieval System, Or T ransmission In Any Form Or By Any Means, Electronic, Mechanical, Photocopying, Recording, Or Likewise.
2
,SOLUTION
Contents
Preface
Chapter 1 Engineering Economic Decisions
Chapter 2 Time Value Of Money
Chapter 3 Understanding Money Management
Chapter 4 Equivalence Calculations Under
Inflation Chapter 5 Present-Worth Analysis
Chapter 6 Annual Equivalence Analysis
Chapter 7 Rate-Of-Return Analysis
Chapter 8 Accounting For Depreciation And Income
Taxes Chapter 9 Project Cash Flow Analysis
Chapter 10 Handling Project Uncertainty
Chapter 11 Replacement Decisions
Chapter 12 Benefit-Cost Analysis
Chapter 13 Understanding Financial Statements
3
, SOLUTION
Preface
This Instructor's Manual To Fundamentals Of Engineering Economics, 2 nd Edition Contains Detailed
Solutions To All The End-Of-Chapter Problems (Except Some Open-Ended Case Problems). The
Problem Solutions Follow Topical Headings Listed In The Main Text To Indicate The Generic Content
Of Each Problem. The Headings Are Provided To Aid You In Selecting Your Preferred Mix Of Problem
Types For Homework Assignments.
Companion Book Website
Two Important Resources Are Available From The Book’s Companion Website Under ―Instructor
Recourse Center‖ At Http://Www.Prenhall.Com/Park.
Instructor’ Manual – Each End-Of-Chapter Problems Can Be Downloaded From This Website.
Each Chapter Solutions Come In Two File Formats: One In Microsoft Word File Format And
The Other In Pdf Format. In Creating Many Mathematical Equations Th e Word Files, I Used
The Mathtype™ Equation Editor (Version 6.0) From Design Science. If You Have Not
Installed This Mathtype™ On Your Pc, Some Of The Characters May Not Be Displaced
Correctly. If That Is The Case, Just Open The Pdf Version The File.
A Comprehensive Set Of Lecture Notes In Powerpoint Format Is Also Available To Instructors
Who Adopt The Text.
Solutions Provided In Excel Worksheet
Fundamentals Of Engineering Economics Contains Nearly 493 Problems Including 41 Short -
Case Assignment Problems. Many Of Them Come With Multiple-Part Questions, Bringing The
Total Number Of Questions To Nearly 900.
The Problems Listed Under ``Short Case Studies With Excel" Require More Involved
Assumptions, Solution Steps, And Calculations.
Many Of The Excel Worksheets In Word Files Appear As ―Microsoft Excel Worksheet Object,‖
So Just Place The Cursor Over The Worksheet Area And Double-Click Will Convert Them Into
Live Excel Worksheet. This Will Allow You To Modify The Solution And Answer Many What -
If Questions.
Some Deviations In Answers
Your Independent Solutions To The Text Problems May Yield Answers Slightly Different From
Mine Due To Rounding Differences. In Some Cases, The Interpretations And Assumptions
Students Bring To The Problems May Differ From My Own In Creating Them, Again Resulting
In Different Answers.
Some Of The Answers (Not The Procedures) To The End-Of-Chapter Problems Are Posted
In The Book's Companion Website, So That Students Can Check The Answers On Their
Own.
4
