Essentials of Engineering Economics

12 percent 20 percent acceptable ACRS actual dollars after-tax cash flow alternative amount analysis annuity asset assumed average before-tax benefit-cost benefits bond book value borrowed breakeven BTCF calculated Capital recovery Chapter comparison cost of capital debt decision decision tree deductions depreciation charges determine discount rate discounted cash flow earnings effective interest rate engineering economics equipment equity equivalent annual cost estimates evaluation Example expected value expense financing fixed costs funds future worth income tax increase incremental inflation rate lease loan machine marginal marginal cost MARR method minimum nominal interest rate operating costs outcomes output payments percent compounded percentage preferred present worth probability problem production profit purchase price rate of return receipts replacement result revenue risk salvage value savings selected sensitivity Solution straight-line study period Table tax rate taxable income units utilization variable costs