Message from the Author

Why Fundamentals of Engineering Economics?

Engineering economics is one of the most practical subject matters in engineering curriculum, but it is always challenging and ever-changing discipline. Contemporary Engineering Economics (CEE) was first published in 1993, and since then we have tried to reflect changes in business world in each new edition, along with the latest innovation in education and publishing. These changes have resulted in a better, more complete textbook, but one that is much longer than it was originally intended. This may present a problem: today, covering the textbook in a single term is increasingly difficult. Not only is size an issue, but cost is, as well. Therefore, we decided to create Fundamentals of Engineering Economics (FEE) for those who like Fundamentals but think a smaller, more concise textbook would better serve their needs.

Goal of the Text

This text aims not only to provide sound and comprehensive coverage of the concepts of engineering economics, but also to address the practical concerns of engineering economics. More specifically, this text has the following chief goals:

  1. To build a thorough understanding of the theoretical and conceptual basis upon which the practice of financial project analysis is built.
  2. To satisfy the very practical needs of the engineer toward making informed financial decisions when acting as a team member or project manager for an engineering project.
  3. To incorporate all critical decision-making tools-including the most contemporary, computer-oriented ones that engineers bring to the task of making informed financial decisions.
  4. To appeal to the full range of engineering disciplines for which this course is often required: industrial, civil, mechanical, electrical, computer, aerospace, chemical, and manufacturing engineering, as well as engineering technology.

Intended Market and Use

This text is intended for use in the introductory engineering economics course. Unlike the larger textbook (CEE), it is possible to cover FEE in a single term, and perhaps even to supplement it with a few outside readings or cases. Although the chapters in FEE are arranged logically, they are written in a flexible, modular format, allowing instructors to cover the material in a different sequence.