tailieunhanh - Ebook Engineering economy (8th edition): Part 2

(BQ) Part 2 book "Engineering economy" has contents: Project financing and noneconomic attributes, replacement and retention decisions, independent projects with budget limitation, breakeven and payback analysis, depreciation methods, sensitivity analysis and staged decisions,.and other contents. | LEARNING STAGE 3 Making Better Decisions LEARNING STAGE 3 Making Better Decisions cha pter 10 Project Financing and Noneconomic Attributes cha pter 11 Replacement and Retention Decisions cha pter 12 Independent Projects with Budget Limitation cha pter 13 Breakeven and Payback Analysis M ost of the evaluations in the real world involve more than a simple economic selection of new assets or projects. The chapters in this stage introduce information-gathering and techniques that make decisions better. For example, noneconomic parameters can be introduced into the project analysis study through multiple attribute evaluation, and the appropriate MARR for a corporation or type of alternative can tailor and improve the economic decision. The future is certainly not exact. However, techniques such as replacement/retention studies, breakeven analysis, and payback analysis help make informed decisions about future uses of existing assets and systems. After completing these chapters, you will be able to go beyond the basic alternative analysis tools of the previous chapters. The techniques covered in this learning stage take into consideration the moving targets of change over time. Important note: If asset depreciation and taxes are to be considered by an after-tax analysis, Chapters 16 and 17 should be covered before or in conjunction with these chapters. CHAPTER 10 Project Financing and Noneconomic Attributes L E A R N I N G © Floresco Productions/age fotostock O U T C O M E S Purpose: xplain debt and equity financing, select the appropriate MARR, and consider multiple attributes when E ­comparing alternatives. SECTION TOPIC LEARNING OUTCOME COC and MARR • Explain the relation between cost of capital and the MARR; explain why MARR values vary. D-E mix and WACC • Understand debt-to-equity mix and calculate the Cost of debt capital • Estimate the cost of debt capital, considering tax weighted average cost of .