Instructor’s Manual
FUNDAMENTALS OF
ENGINEERING
ECONOMICS, Second Edition
Chan S. Park
Auburn University
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 written 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 likewise.
, 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 written permission should be obtained from the publisher prior to any prohibited reproduction, storage
ii
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
, Preface
This Instructor's Manual to Fundamentals of Engineering Economics, 2nd
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.
• 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.
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 written permission should be obtained from the publisher prior to any prohibited reproduction, storage
iii
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
, 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."
Chan S. Park
Auburn
December 2007
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 written permission should be obtained from the publisher prior to any prohibited reproduction, storage
iv
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
FUNDAMENTALS OF
ENGINEERING
ECONOMICS, Second Edition
Chan S. Park
Auburn University
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 written 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 likewise.
, 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 written permission should be obtained from the publisher prior to any prohibited reproduction, storage
ii
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
, Preface
This Instructor's Manual to Fundamentals of Engineering Economics, 2nd
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.
• 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.
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 written permission should be obtained from the publisher prior to any prohibited reproduction, storage
iii
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
, 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."
Chan S. Park
Auburn
December 2007
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 written permission should be obtained from the publisher prior to any prohibited reproduction, storage
iv
in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise.
