I put another quick book on Amazon. It is the first edition so it is still a little rough BUT you can buy it, look at it and then return it for a refund if you hate it.

Engineering Economics – The Basics shows the typical formulas used in economic analysis with over 55 examples. Subjects such as compounding interest, economic equivalence, internal rate of return and benefit cost ratios are covered.

Engineering Economics – The Basics on Amazon – $1.99

Here are a few examples from the book.

Compute the equivalent value of S, by moving the series of $1000, and assuming a 12% interest rate.

Solution: The question asks you to move the three $1000 cash flows to a different location on a timeline. This is what economic equivalence is all about, the series of “S” values is equivalent to the series of $1000, as long as the interest rate stays the same throughout the timeline.

Based on a benefit/cost ratio, which of the two alternatives given below should be chosen? Use an interest rate of 9% for the analysis.

Hint: First check both alternatives have a benefit/cost ratio greater or equal to one and then calculate an incremental benefit/cost ratio. (Note the formulas used for determining present worth, in this example, may not always be the same ones as shown below.)