Principles of Engineering Economic Analysis, 6th Edition solutions manual by John A. White, Kenneth E. Case, David B. Pratt

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Principles of Engineering Economic Analysis, 6th Edition solutions manual by John A. White, Kenneth E. Case, David B. Pratt

Principles of Engineering Economic Analysis, 6th Edition   solutions manual by John A. WhiteKenneth E. CaseDavid B. Pratt

NOTES - CHAPTER 2 SOLUTIONS
FOLLOWING ARE SOME THOUGHTS ABOUT THE PROBLEMS AND SOLUTIONS IN THIS CHAPTER THAT MAY BE OF HELP TO FACULTY AND STUDENTS.
1 THIS IS, PERHAPS, THE MOST CRITICAL CHAPTER IN THE BOOK IN THAT IT DEALS WITH THE "TIME VALUE OF MONEY (TVM)," A FUNDAMENTAL CONCEPT USED THROUGHOUT THE REST OF THE BOOK.  
2 THERE ARE 180 BASE PROBLEMS, MANY WITH MULTIPLE PARTS, AND MULTIPLE SOLUTIONS FOR MANY OF THOSE PARTS ARE PRESENTED IN THIS SOLUTION MANUAL
3 THERE ARE FIVE DIFFERENT METHODS THAT ARE SEEN MULTIPLE TIMES IN THESE SOLUTIONS.  THEY INCLUDE USE OF (1) SIMPLE AND COMPOUND INTEREST FORMULAS, (2) INTEREST TABLES SUCH AS THOSE IN APPENDICES A AND B, AS WELL AS "ELECTRONIC" INTEREST TABLES (SEE ITEM 5 BELOW), (3) USE OF MYRIAD EXCEL FUNCTIONS, (4) SEARCH PROCEDURES USING EXCEL'S "SOLVER" AND "GOAL SEEK" TOOLS, AND (5) BRUTE FORCE TABULAR APPROACHES
4 THE COMPOUND INTEREST FORMULAS ARE OFTEN THE MOST ONEROUS TO USE, GIVEN THAT THEY REPRESENT THE FUNDAMENTAL MATHEMATICS OF TVOM.
5 THE INTEREST TABLES REPRESENT THE MOST COMMON APPROACH USED HERETOFORE IN "ENGINEERING ECONOMY" COURSES; THEY USUALLY VASTLY SIMPLIFY THE MATHEMATICS INVOLVED BY INCORPORATING ONE OR MORE COMPOUND INTEREST FORMULAS INTO A SINGLE TABULATED "FACTOR" AVAILABLE IN APPENDICES A AND B.  SINCE THE INTEREST TABLES ARE FOR ONLY A FINITE (ALTHOUGH VERY LARGE) SET OF INTEREST RATES (i AND j) AND TIME HORIZONS (n), THEY MAY NOT BE AVAILABLE FOR A SPECIFIC SET OF i, j, OR n NEEDED.  "ELECTRONIC" INTEREST TABLES ARE AVAILABLE, AND HAVE BEEN USED WHEN UNAVAILABLE TABULATED VALUES OF i, j, AND/OR n HAVE BEEN NEEDED.  PLEASE SEE NOTES 13 AND 14 BELOW FOR MORE DETAIL ON THE USE OF "ELECTRONIC" INTEREST TABLES.


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