INSTRUCTOR’S MANUAL FOR
FUNDAMENTALS OF ENGINEERING
ECONOMICS, SECOND EDITION CHAN S.
PARK LATEST UPDATE 2025/2026 A+
1
, 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
Instructor Solutions Manual to 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.
This material is protected by Copyright and w ritten permission should be obtained from the publisher prior to any prohibited reproduction, storage
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likew ise.
, 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 The 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.
Instructor Solutions Manual to 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.
This material is protected by Copyright and w ritten permission should be obtained from the publisher prior to any prohibited reproduction, storage
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likew ise.
, 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.
Having Made These Disclaimers, I Wish To Emphasize That It Is My And The Publisher's Intention To Provide
The Most Accurate Solutions Possible. Thus, If You Discover Any Typo Errors, Or Disagree Strongly With The
Interpretation And Assumptions Required Of A Particular Solution, Please Do Not Hesitate To Report Your
Concerns To Me Via Email At So They May Be Corrected In Subsequent Printings On
Time. I Will Also Plan On Posting Any Errors On The Book's Web Site Under "Instructor Resource Center."
Chapter 1 Engineering Economic Decisions
There Are No End-Of-Chapter Questions In This Introductory Chapter. However, The
Following Questions Could Be Added As A Part Of Instruction:
1. Ask Students To Review The Contents Of The Wall Street Journal For The Past 3
Months. Then, Identify And Categorize The Types Of Investment Decisions Appeared
In The Journal According To The Types Of Strategic Economics Decisions Discussed
In The Text.
2. Work In Small Groups And Brainstorm Ideas About How A Common Appliance,
Device Or Tool Could Be Redesigned To Improve It In Some Way. Identify The Steps
Involved And The Economic Factors, Which You Would Need To Consider Prior To
Making A Decision To Manufacture The Redesigned Product. A Detailed Design And
Actual Cost Estimates Are Not Required. Some Items, Which Could Be Considered
Instructor Solutions Manual to 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.
This material is protected by Copyright and w ritten permission should be obtained from the publisher prior to any prohibited reproduction, storage
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likew ise.
FUNDAMENTALS OF ENGINEERING
ECONOMICS, SECOND EDITION CHAN S.
PARK LATEST UPDATE 2025/2026 A+
1
, 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
Instructor Solutions Manual to 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.
This material is protected by Copyright and w ritten permission should be obtained from the publisher prior to any prohibited reproduction, storage
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likew ise.
, 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 The 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.
Instructor Solutions Manual to 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.
This material is protected by Copyright and w ritten permission should be obtained from the publisher prior to any prohibited reproduction, storage
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likew ise.
, 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.
Having Made These Disclaimers, I Wish To Emphasize That It Is My And The Publisher's Intention To Provide
The Most Accurate Solutions Possible. Thus, If You Discover Any Typo Errors, Or Disagree Strongly With The
Interpretation And Assumptions Required Of A Particular Solution, Please Do Not Hesitate To Report Your
Concerns To Me Via Email At So They May Be Corrected In Subsequent Printings On
Time. I Will Also Plan On Posting Any Errors On The Book's Web Site Under "Instructor Resource Center."
Chapter 1 Engineering Economic Decisions
There Are No End-Of-Chapter Questions In This Introductory Chapter. However, The
Following Questions Could Be Added As A Part Of Instruction:
1. Ask Students To Review The Contents Of The Wall Street Journal For The Past 3
Months. Then, Identify And Categorize The Types Of Investment Decisions Appeared
In The Journal According To The Types Of Strategic Economics Decisions Discussed
In The Text.
2. Work In Small Groups And Brainstorm Ideas About How A Common Appliance,
Device Or Tool Could Be Redesigned To Improve It In Some Way. Identify The Steps
Involved And The Economic Factors, Which You Would Need To Consider Prior To
Making A Decision To Manufacture The Redesigned Product. A Detailed Design And
Actual Cost Estimates Are Not Required. Some Items, Which Could Be Considered
Instructor Solutions Manual to 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.
This material is protected by Copyright and w ritten permission should be obtained from the publisher prior to any prohibited reproduction, storage
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likew ise.
