Designed as a textbook for undergraduate students in various engineering disciplines—Mechanical, Civil, Industrial Engineering, Electronics Engineer-ing and Computer Science—and for postgraduate students in Industrial Engineering and Water Resource Management, this comprehensive and well-organized book, now in its Second Edition, shows how complex economic decisions can be made from a number of given alternatives. It provides the managers not only a sound basis but also a clear-cut approach to making decisions. These decisions will ultimately result in minimizing costs and/or maximizing benefits. What is more, the book adequately illustrates the concepts with numerical problems and Indian cases.
While retaining all the chapters of the previous edition, the book adds a number of topics to make it more comprehensive and more student friendly.
• Discusses different types of costs such as average cost, recurring cost, and life cycle cost.
• Deals with different types of cost estimating models, index numbers and capital allowance.
• Covers the basics of nondeterministic decision making.
• Describes the meaning of cash flows with probability distributions and decision making, and selection of alternatives using simulation.
• Discusses the basic concepts of Accounting.
This book, which is profusely illustrated with worked-out examples and a number of diagrams and tables, should prove extremely useful not only as a text but also as a reference for those offering courses in such areas as Project Management, Production Management, and Financial Management.