Table Of ContentFundamentals of Engineering
Economic Analysis
Second Edition
JOHN A. WHITE
University of Arkansas
KELLIE S. GRASMAN
Missouri University of Science and Technology
KENNETH E. CASE
Oklahoma State University
KIM LaSCOLA NEEDY
University of Arkansas
DAVID B. PRATT
Oklahoma State University
VICE PRESIDENT & DIRECTOR Laurie Rosatone
SENIOR DIRECTOR Don Fowley
INSTRUCTIONAL DESIGN LEAD Thomas Kulesa
INSTRUCTIONAL DESIGNER Melissa Whelan
SENIOR CONTENT MANAGER Valerie Zaborski
SENIOR PRODUCTION EDITOR Ashley Patterson
MARKETING MANAGER Christie Lieske
MEDIA SPECIALIST Ashley Patterson
DESIGNER Joanna Vieira
EDITORIAL ASSISTANT Raelyn Giansanti
COVER DESIGN Joanna Vieira
COVER PHOTO © Peshkova/Getty images
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Preface
Introduction
We are pleased to present Fundamentals of Engineering Economic Analysis
2nd edition, a fully up-to-date text to serve an undergraduate engineering
economics course. Building upon the successful award-winning first
edition, the new text continues to offer a streamlined delivery of
engineering econ fundamentals. In its first edition, the text was carefully
optimized to serve a 1- semester, 1–3 credit-hour course without sacrificing
rigor or essential content. The core content and approach of Fundamentals
of Engineering Economic Analysis are built on the strong foundation of
Principles of Engineering Economic Analysis, now in its sixth edition, by
John A. White, Kenneth E. Case, and David B. Pratt. As such, the content
has been thoroughly and successfully class-tested, and reflects decades’
worth of accuracy checking.
New to This Edition
In revising Fundamentals of Engineering Economic Analysis, we have
updated the text to reflect recent changes to the treatment of corporate
income taxes and depreciation as dictated by the American Tax Cuts & Jobs
Act of 2017. Further, we have improved in-chapter pedagogical features,
aligning all text content and resources to learning objectives and offering
concept check questions in-line with reading. Most significantly, this
edition offers a fully integrated approach to link the traditional
“textbook” content to a world of digital teaching and learning
resources through an interactive e-text option, a fully New WileyPLUS
environment, and hundreds of new problems for practice and assessment.
Three Big Things:
1. Interactive E-text with Media-Rich, Integrated Learning
2. New WileyPLUS: Complete “Out of the Box” Online Course
3. Abundant Problems for Practice and Assessment
1. Interactive E-text with Media-Rich, Integrated
Learning
The visual Interactive Pedagogical Framework section that follows shows
how digital resources connect with reading content to provide a superior
student-centered learning environment. The interactive e-text delivers all
traditional textbook content along with just-in-time multi-media resources
to engage students.
While the interactive e-text brings traditional print content to life with
interactive media, the WileyPLUS online course takes that a step further.
2. New WileyPLUS: Complete “Out of the Box”
Online Course
WileyPLUS combines the complete, dynamic interactive e-text of
Fundamentals of Engineering Economic Analysis 2nd edition with all of the
teaching and learning resources you need to deliver a complete online,
hybrid, or traditional 1–3 credit-hour course, in one easy-to-use system.
Completely redesigned for the 2nd edition, the New WileyPLUS
environment offers instructors the option to get started with a complete “out
of the box” course that may be implemented as is, or customized to meet
your specific needs. You can access pre-created, customizable assignments
for each chapter of the text. Assignments are based on the authors’
proven approach to teaching this specific content. The approach has
been refined over many semesters, and offers efficiency to instructors while
ensuring research-backed learning opportunities for students. Instructors
may integrate the full set of assignments to create a complete online course
for their students, or select specific types of assignments to incorporate with
traditional classroom and/or hybrid delivery.
Pre-Created Assignments
Each chapter includes pre-created assignments, aligned with specific
learning objectives, in each of the following categories:
Reading Review
Students are prompted to read specific sections of the digital text, and then
answer multiple-choice questions related to the text concepts.
Lessons
Students are prompted to view mini-lecture videos that present fundamental
topics and simple examples, and then answer multiple-choice questions
related to the topics.
®
Excel Lessons
®
Students are presented videos that demonstrate how to use specific Excel
financial functions and tools in the context of a general example. Then they
are asked to solve a similar problem using the function they just learned
about.
Examples
Students are presented videos that demonstrate the solution to a textbook
Example, and then solve a similar problem.
Practice Problems
Students are assigned problems, and offered structured support as they
practice the problem-solving processes demonstrated in the text. Support
may include a video solution of the problem or a GO Tutorial that outlines
the problem-solving steps, along with answers and solutions displayed after
two attempts are made.
Homework
Students are presented problems with limited support to test their
knowledge of the problem-solving processes. Problems are algorithmic so
each student sees different values.
Utilizing the pre-created assignments creates a structured learning path
for students. With so many resources available to support learning, the
options can sometimes be overwhelming! Assignments guide students to
specific resources, to interact with the material in a natural progression.
Reading Reviews introduce the text and encourage mastery of terminology
®
and concepts. Lessons present the topics in video form, and Excel Lessons
®
present basics of Excel functions. Examples encourage students to view a
problem-solving process and model it in a similar assigned problem.
Practice encourages more problem-solving—the key to success in the
course—and offers abundant student support. Then Homework requires
students to apply the problem-solving skills to new scenarios. If used
sequentially, the pre-created assignments guide students through concepts
and problem-solving in a progressive fashion.
Instructors may choose to use all of the pre-created assignments, or choose
specific categories based on their course needs. Further, assignments may
be readily modified to add or remove questions. For instance, if instructors
choose to omit a section of a chapter, they can easily remove related
questions from a pre-created assignment. Each question is aligned to a
learning objective and section from the text, so it is easy to see and add or
remove questions. Assignment policies were carefully chosen and vary by
category, and may also be modified to suit instructor preferences.
The structured learning path approach and associated categories have been
refined and class tested over many semesters—by the author—and offer a
proven method to help students master engineering economy.
3. Abundant Problems for Practice and
Assessment
The pre-created assignments noted above utilize course-tested questions,
many of which are available for students to view in the enhanced e-text.
While the students may be familiar with the wording, problems are
configured to present algorithmic values—so individual students receive a
unique calculation scenario.
Problems in the text and WileyPLUS course are categorized as Student
Facing or Instructor-Only. The student facing problems are included in the
digital text, and many are also available to assign to students in
WileyPLUS. Student facing problems are generally intended to support
student self-study or low-stakes formative assessment, and many are also
included in pre-created assignments.
Abundant—and varied—problems are available. Over 1,200 problems and
questions are available to students in the e-text; 22% new or updated for
this edition, including a new category dedicated to student self-study of
concepts. WileyPLUS includes a set of nearly 1,500 problems and questions
instructors can use in auto-graded assignments, with 650 new to this
edition.
Student facing problems are categorized as follows:
Student Facing (Practice)
FE = Multiple-choice Fundamentals of Engineering exam prep
questions
Presented in student e-text with show/hide answers to even-
numbered questions for self-study
All available to assign in WileyPLUS, with algorithmic values
CC = Multiple-choice concept check questions
Presented in student e-text in-line with reading content, with
show/hide answers to all questions, for self-study
All available to assign in WileyPLUS
PR = Numerical entry, end-of-chapter problems requiring calculations
Presented in student e-text with show/hide answer and Video
Solution for select problems, as indicated by “Video Solution” icon
Many problems available to assign in WileyPLUS, as indicated by
“WP” icon
Select problems include GO Tutorials in WileyPLUS to guide
solution process, as indicated by “GO Tutorial” icon
The instructor-only problems are ONLY available to instructors, and have
not been shared in any student facing environment. These problems have
intentionally been reserved to reduce the proliferation of answers/solutions
on internet sources. Instructor-only problems are generally intended to be
