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Engineering Economy and Management

Pravin Kumar

ISBN: 9788126579921

516 pages

eBook also available for institutional users 

INR 649


Engineering Economy and Management highlights the importance of economics and management in engineering and helps engineers in managerial decision making. It provides comprehensive coverage of the subject from basic principles to state-of-the-art concepts and applications. This book is common to all students in engineering discipline and is very useful in evaluating the economic merits and demerits of various solutions to engineering problems. Engineering problems may involve the decisions related to resources and their allocation. Engineering economics is closely associated with conventional microeconomics; but here, its focus is on problem solving at operational levels.


About the Author


Chapter 1 Introduction to Engineering Economics

1.1 Introduction

1.2 Concept of Efficiency

1.3 Theory of Demand

1.4 Elasticity of Demand

1.5 Supply and Law of Supply

1.6 Indifference Curves

1.7 Budget Line

1.8 Welfare Analysis


Chapter 2 Managerial Economics

2.1 Introduction

2.2 Scope of Managerial Economics

2.3 Techniques of Managerial Economics

2.4 Applications of Managerial Economics


Chapter 3 Money, National Income, and Goods and Services Tax

3.1 Money

3.2 National Income

3.3 Goods and Services Tax


Chapter 4 Poverty, Unemployment, and Inflation

4.1 Scarcity

4.2 Poverty

4.3 Unemployment

4.4 Inflation


Chapter 5 Banking Systems

5.1 Introduction to Banking Systems

5.2 Types of Banks

5.3 Quantitative Instruments for Credit Control

5.4 Types of Banking


Chapter 6 Market Structures

6.1 Introduction

6.2 Perfect Competition

6.3 Monopoly

6.4 Monopolistic Competition

6.5 Oligopoly

6.6 Duopoly

6.7 Monopsony

6.8 Monopoly and Monopsony: A Comparison


Chapter 7 Marketing Management

7.1 Introduction

7.2 Marketing Mix

7.3 Market Segmentation

7.4 Exchange and Transactions

7.5 Marketing Research

7.6 Scope of Marketing

7.7 Product Life Cycle

7.8 Demand Forecasting


Chapter 8 Concepts in Management

8.1 Introduction

8.2 Characteristics of Management

8.3 Scope of Management

8.4 Classical School of Management

8.5 Functions of Management

8.6 Levels of Management

8.7 Skills of Management

8.8 Managerial Roles

8.9 Administration and Management


Chapter 9 Human Resource Management

9.1 Human Resource Management

9.2 Human Resource Planning

9.3 Recruitment and Selection

9.4 Job Design

9.5 Merit Rating


Chapter 10 Corporate Social Responsibility and Business Ethics

10.1 Corporate Social Responsibility

10.2 Types of Corporate Social Responsibilities

10.3 Ethics


Chapter 11 Production and Operations Management

11.1 Production and Operations Management

11.2 Objectives of Production Management

11.3 Production Systems

11.4 Facility Location

11.5 Plant Layout


Chapter 12 Demand Forecasting and Cost Estimation

12.1 Introduction

12.2 Forecasting Horizons

12.3 Steps to Forecasting

12.4 Forecasting Methods

12.5 Seasonal Adjustments

12.6 Forecasting Performance Measures

12.7 Cost Estimation

12.8 Elements of Cost

12.9 Computation of Material Variances

12.10 Break-Even Analysis


Chapter 13 Time Value of Money

13.1 Introduction

13.2 Simple Interest

13.3 Compound Interest

13.4 Present Worth Analysis

13.5 Future Worth Analysis

13.6 Annual Cash Flow Analysis

13.7 Rate of Return Analysis

13.8 Arithmetic Gradient

13.9 Geometric Gradient

13.10 Continuous Compounding

13.11 Normal and Effective Interest Rate

13.12 Perpetual Payment


Chapter 14 Project Evaluation

14.1 Introduction

14.2 Determining Minimum Attractive Rate of Return

14.3 Payback (Payout) Period Method

14.4 Benefit–Cost Ratio


Chapter 15 Comparison Among Alternatives

15.1 Introduction

15.2 Basis for Comparison of Alternatives

15.3 Study Period

15.4 Useful Lives of Alternatives Are Equal to the Study Period

15.5 Useful Lives of Alternatives Are Unequal

15.6 B–C Ratio Method for Comparison of Alternatives


Chapter 16 Depreciation and Taxes

16.1 Introduction

16.2 Some Important Terms Used in Depreciation

16.3 Classical Depreciation Methods

16.4 Modified Accelerated Cost Recovery System

16.5 Taxes


Chapter 17 Replacement Analysis

17.1 Introduction

17.2 Reasons for Replacement Analysis

17.3 Lives of Assets

17.4 Determining the Economic Life of a Challenger

17.5 Determining the Economic Life of a Defender

17.6 After-Tax Replacement Studies


Chapter 18 Concept of Financial Statement

18.1 Introduction

18.2 Sources of Company Information

18.3 Sources of International Economic Data

18.4 Financial Analysis

18.5 Financial Statement

18.6 Trading Account

18.7 Profit and Loss Account

18.8 Balance Sheet Requirements

18.9 Distinction between Profit and Loss Account and Balance Sheet


Chapter 19 Financial Ratios

19.1 Introduction

19.2 Types of Financial Ratios

19.3 Advantages and Limitations of Ratio Analysis


Chapter 20 Capital Budgeting

20.1 Introduction

20.2 Capital Financing and Allocation Functions

20.3 Sources of Capital Funds

20.4 Capital Asset Pricing Model

20.5 Weighted Average Cost of Capital

20.6 Leasing Decisions

20.7 Capital Allocation


Chapter 21 Decision Making

21.1 Introduction

21.2 Types of Decision-Making Environments

21.3 Decision Tree Analysis

21.4 Multiple Criteria Decision Making



Points to Remember

Multiple-Choice Questions

State whether True/False

Fill in the Blanks

Review Questions


Appendix A

Statistical Tables and Procedures

Appendix B End-of-Period Compound Interest Tables

Appendix C Answers to Objective Type Questions