Park - Fundamentals of Engineering Economics, 2nd Edition_solution Manual_ch0

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 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13

Engineering Economic Decisions Time Value of Money Understanding Money Management Equivalence Calculations under Inflation Present-Worth Analysis Annual Equivalence Analysis Rate-of-Return Analysis Accounting for Depreciation and Income Taxes Project Cash Flow Analysis Handling Project Uncertainty Replacement Decisions Benefit-Cost Analysis 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.

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A comprehensive set of lecture notes in PowerPoint format is also available to instructors who adopt the text.

Solutions Provided in Excel Worksheet •

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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 •

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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 [email protected] 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.