Papers by irene de guzman
xii Preface public and private sectors, respectively. The implications of capital rationing in ec... more xii Preface public and private sectors, respectively. The implications of capital rationing in economic evaluations are also discussed. In addition to the coverage of replacement analysis, price level changes, depreciation, and corporation taxes, this book provides a chapter on production cost and benefit estimation to cover some elements of microeconomics and another chapter on financial statements pertinent to decision makers who are not familiar with financial accounting. The chapter on uncertainty and risk covers the broad issues of operating risk and financial risk associated with economic evaluation of capital projects. Finally, the basic issues affecting the selection of the minimum attractive rates of return for capital investments in the private and public sectors are discussed respectively in the last two chapters. This book has provided more than sufficient material for a one-semester course so that an instructor may have the flexibility to exercise discretion in the selection of topics and illustrative examples. From the experience of various instructors using the last edition of this book, several alternatives for the course contents are suggested to meet the needs of individual instructors: 1. For a basic one-semester undergraduate course, cover Chapters 1 through 13, except that for Chapters 7 and 8, only the first three sections of each chapter are included. The course may also include the first nine sections of Chapter 15. 2. For an introductory undergraduate course with emphasis on investment decisions without considering uncertainty for the public sector, cover Chapters 1 through 10 plus Chapter 17. 3. For a two-quarter or two-semester sequence in the undergraduate curriculum, cover all chapters in the book. 4. For a fast-paced one-semester advanced undergraduate or graduate course, cover the contents of the entire book but assign the elementary chapters to students for review or self-study. This book is a joint undertaking of the authors to capture the forefront of development in engineering economic analysis. Chapters 1 through 10 and Chapter 17 were written by the first author and Chapters 11 through 14 by the second author. Chapters 15 and 16 were writtenjointly. The manuscript has been checked by both authors for continuity and consistency. Ample examples are completely worked out to illustrate the methods of approach for a great variety of problems with varying degrees of difficulty. The opinions expressed in this book are our own and not those of the institutions with which we are affiliated in our respective capacities. We are indebted to Drs. Chris Hendrickson and Martin Wohl for their many suggestions and discussions in the development of the first edition and the subsequent revision for the second edition of this book. We thank others who offered many suggestions at various stages of development of the manuscript, particularly
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Papers by irene de guzman