top of page

Market Research Group

Public·47 members
Carter King
Carter King

Learn Engineering Economy with Hipolito Sta Maria's Solution Manual for the 3rd Edition



Engineering Economy 3rd Edition By Hipolito Sta Maria Solution Manual




If you are an engineering student or a practicing engineer, you may have encountered the book Engineering Economy by Hipolito Sta Maria. This book is one of the most popular and widely used textbooks on engineering economy, a discipline that deals with the analysis of economic alternatives in engineering projects. The book covers the basic concepts, methods and applications of engineering economy, with examples and exercises drawn from various fields of engineering.




Engineering Economy 3rd Edition By Hipolito Sta Maria Solution Manual



But how can you make the most out of this book? How can you master the skills and knowledge that are essential for engineering economy? How can you solve the problems and cases that are presented in the book?


The answer is simple: you need the Engineering Economy 3rd Edition By Hipolito Sta Maria Solution Manual. This solution manual is a comprehensive guide that provides detailed solutions to all the exercises in the book. It helps you understand the concepts, principles and techniques of engineering economy, as well as how to apply them to real-world situations. It also helps you check your answers, correct your mistakes, and improve your performance.


In this article, we will tell you everything you need to know about this solution manual. We will explain what engineering economy is, how to use the solution manual, what are the benefits of using it, what are the topics covered in the book, and how to test your knowledge and skills. By the end of this article, you will be ready to ace your engineering economy course and become a better engineer.


What is Engineering Economy?




Engineering economy is the study of the economic aspects of engineering decisions. It involves the comparison and evaluation of different alternatives that have different costs and benefits over time. Engineering economy helps engineers to choose the best alternative that maximizes the net benefit or minimizes the net cost, while taking into account factors such as time, interest, inflation, taxes, depreciation, risk and uncertainty.


Engineering economy is important for engineers because it helps them to make rational and informed decisions that affect the feasibility, profitability and sustainability of engineering projects. Engineering economy also helps engineers to communicate and justify their decisions to managers, clients, stakeholders and society.


How to Use the Solution Manual?




The solution manual is a valuable resource that complements the book. It provides step-by-step solutions to all the exercises in the book, including the review questions, problems and case studies. The solutions are clear, concise and accurate, and they follow the same format and notation as the book. The solution manual also includes explanations, comments and tips that help you understand the logic and reasoning behind the solutions.


To use the solution manual effectively, you should follow these steps:



  • Read the book carefully and try to understand the concepts, methods and examples.



  • Attempt to solve the exercises by yourself, without looking at the solutions.



  • Compare your answers with the solutions and identify your errors and gaps.



  • Review the solutions and learn from your mistakes and from the best practices.



  • Repeat the process until you master the skills and knowledge.



You can access the solution manual online or download it as a PDF file. You can also print it out or use it on your mobile device. However, you should use it responsibly and ethically, and not copy or share it without permission.


What are the Benefits of Using the Solution Manual?




Using the solution manual has many benefits for your learning and practice. Here are some of them:



  • It helps you to reinforce your understanding of the concepts, methods and applications of engineering economy.



  • It helps you to improve your problem-solving skills and techniques.



  • It helps you to enhance your critical thinking and analytical abilities.



  • It helps you to develop your confidence and competence in engineering economy.



  • It helps you to prepare for your exams and assignments.



  • It helps you to save time and effort in studying and reviewing.



What are the Topics Covered in the Book?




The book covers a wide range of topics that are essential for engineering economy. It consists of 13 chapters that are organized into four parts:



  • Part 1: Introduction (Chapter 1)



  • Part 2: Basic Concepts (Chapters 2-4)



  • Part 3: Evaluation of Alternatives (Chapters 5-9)



  • Part 4: Special Topics (Chapters 10-13)



In this section, we will give you a brief overview of each chapter and its main points.


Chapter 1: Introduction to Engineering Economy




This chapter introduces the objectives, concepts and methods of engineering economy. It defines engineering economy as "the application of economic principles in engineering practice". It explains why engineering economy is important for engineers and how it relates to other disciplines. It also describes the steps involved in engineering economy analysis, such as defining the problem, identifying alternatives, estimating costs and benefits, comparing alternatives, choosing an alternative, implementing an alternative, monitoring an alternative, reviewing an alternative. It also introduces some basic terms and symbols used in engineering economy, such as interest rate, cash flow, present worth, future worth, annual worth, rate of return, benefit-cost ratio, payback period, etc.


Chapter 2: Factors: How Time and Interest Affect Money




Chapter 3: Nominal and Effective Interest Rates




This chapter compares different types of interest rates and their calculations. It defines nominal interest rate as "the interest rate per interest period", and effective interest rate as "the interest rate per year". It shows how to convert nominal interest rates to effective interest rates and vice versa, using the formulas for simple interest conversion, compound interest conversion and continuous interest conversion. It also shows how to compare alternatives with different interest rates using the equivalent annual worth method or the present worth method.


Chapter 4: Present Worth Analysis




This chapter introduces a technique for evaluating alternatives based on their present values. It defines present worth as "the value now of a cash flow or a series of cash flows that occur at different times in the future". It shows how to calculate the present worth of a single payment, a uniform series, a gradient series, or a mixed series using factors or formulas. It also shows how to compare alternatives with equal or unequal lives using the present worth method. It explains the concept of minimum attractive rate of return (MARR), which is "the lowest acceptable rate of return on an investment". It also discusses some issues and challenges in present worth analysis, such as inflation, risk and uncertainty, multiple alternatives, mutually exclusive alternatives, etc.


Chapter 5: Annual Worth Analysis




This chapter introduces another technique for evaluating alternatives based on their annual values. It defines annual worth as "the uniform annual value of a cash flow or a series of cash flows that occur at different times in the future". It shows how to calculate the annual worth of a single payment, a uniform series, a gradient series, or a mixed series using factors or formulas. It also shows how to compare alternatives with equal or unequal lives using the annual worth method. It explains the concept of equivalent annual cost (EAC), which is "the annual cost of owning and operating an asset over its useful life". It also discusses some issues and challenges in annual worth analysis, such as inflation, risk and uncertainty, multiple alternatives, mutually exclusive alternatives, etc.


Chapter 6: Rate of Return Analysis




This chapter introduces another technique for evaluating alternatives based on their internal rates of return. It defines internal rate of return (IRR) as "the interest rate that makes the present worth or the annual worth of an alternative equal to zero". It shows how to calculate the IRR of a single payment, a uniform series, a gradient series, or a mixed series using trial and error method, interpolation method, spreadsheet method or calculator method. It also shows how to compare alternatives with equal or unequal lives using the IRR method. It explains the concept of external rate of return (ERR), which is "the interest rate that makes the present worth of an alternative's cash inflows equal to the present worth of its cash outflows". It also discusses some issues and challenges in IRR analysis, such as multiple IRRs, no IRRs, incremental IRRs, crossover points, etc.


Chapter 7: Benefit/Cost Analysis and Public Sector Economics




This chapter introduces a technique for evaluating public projects based on their benefits and costs. It defines benefit/cost analysis as "a systematic process for comparing the benefits and costs of public projects in order to determine their economic feasibility and social desirability". It shows how to identify and measure the benefits and costs of public projects using market prices or shadow prices. It also shows how to compare public projects using the benefit/cost ratio method or the net present value method. It explains the concept of social discount rate (SDR), which is "the appropriate interest rate for evaluating public projects". It also discusses some issues and challenges in benefit/cost analysis, such as intangible benefits and costs, distributional effects, externalities, etc.


Chapter 8: Breakeven, Sensitivity and Payback Analysis




This chapter introduces a technique for analyzing the effects of changes in variables on alternatives. It defines breakeven analysis as "a technique for finding the value of a variable that makes two alternatives equivalent". It shows how to perform breakeven analysis using graphical method or algebraic method. It also defines sensitivity analysis as "a technique for finding the range of values of a variable that makes an alternative acceptable". It shows how to perform sensitivity analysis using graphical method or spreadsheet method. It also defines payback analysis as "a technique for finding the time required for an alternative to recover its initial investment". It shows how to perform payback analysis using simple payback method or discounted payback method.


Chapter 9: Replacement and Retention Decisions




This chapter introduces a technique for deciding whether to replace or retain an asset. It defines replacement analysis as "a technique for comparing the economic performance of an existing asset with a new asset". It shows how to perform replacement analysis using present worth method or annual worth method. It also defines retention analysis as "a technique for determining the optimal service life of an asset". It shows how to perform retention analysis using present worth method or annual worth method. It also discusses some issues and challenges in replacement and retention analysis, such as taxes, inflation, salvage value, sunk cost, opportunity cost, etc.


Chapter 10: Effects of Inflation




This chapter analyzes how inflation affects engineering economy decisions. It defines inflation as "a general increase in the prices of goods and services over time". It shows how to measure inflation using price indexes or inflation rates. It also shows how to account for inflation in engineering economy analysis using constant dollars or current dollars. It explains the concept of real interest rate, which is "the interest rate that reflects the purchasing power of money". It also discusses some issues and challenges in dealing with inflation, such as forecasting inflation, estimating cash flows, comparing alternatives, etc.


Chapter 11: Estimating Costs




This chapter introduces cost estimation methods and models. It defines cost estimation as "the process of predicting the costs of engineering projects or products". It shows how to classify costs into different categories, such as fixed costs, variable costs, direct costs, indirect costs, etc. It also shows how to use different methods and models for cost estimation, such as analogy method, parametric method, engineering method, learning curve model, etc. It explains the concept of cost index, which is "a ratio that measures the change in the cost of a specific item or a group of items over time". It also discusses some issues and challenges in cost estimation, such as accuracy, uncertainty, risk, etc.


Chapter 12: Depreciation Methods




This chapter introduces different depreciation methods and their impacts on taxes and cash flows. It defines depreciation as "the decrease in the value of an asset due to wear and tear, obsolescence or deterioration". It shows how to calculate depreciation using different methods, such as straight-line method, declining balance method, sum-of-the-years'-digits method, units-of-production method, etc. It also shows how to calculate depreciation for tax purposes using modified accelerated cost recovery system (MACRS). It explains the concept of book value, which is "the value of an asset as recorded in the accounting books". It also discusses some issues and challenges in depreciation analysis, such as salvage value, replacement value, depreciation recapture, etc.


Chapter 13: After-Tax Economic Analysis




This chapter introduces a technique for incorporating tax effects into engineering economy decisions. It defines after-tax analysis as "a technique for evaluating alternatives based on their after-tax cash flows". It shows how to calculate after-tax cash flows using different methods, such as before-tax analysis method, after-tax analysis method or equivalent after-tax analysis method. It also shows how to compare alternatives using after-tax present worth method or after-tax annual worth method. It explains the concept of tax shield, which is "the reduction in taxable income due to an allowable deduction". It also discusses some issues and challenges in after-tax analysis, such as tax rates, tax credits, tax incentives, etc.


How to Test Your Knowledge and Skills?




The book provides various ways to test your knowledge and skills in engineering economy. At the end of each chapter, you will find review questions that test your understanding of the concepts and methods. You will also find problems that test your ability to apply the methods and solve engineering economy problems. You will also find case studies that test your ability to analyze real-world situations and make engineering economy decisions.


You can use the solution manual to check your answers and solutions to these questions, problems and case studies. You can also use the solution manual to learn from the best practices and improve your performance. However, you should not rely solely on the solution manual. You should also practice on your own and seek feedback from your instructors and peers.


Conclusion




In this article, we have given you a comprehensive overview of the book Engineering Economy by Hipolito Sta Maria and its solution manual. We have explained what engineering economy is, how to use the solution manual, what are the benefits of using it, what are the topics covered in the book, and how to test your knowledge and skills.


FAQs




Here are some frequently asked questions about engineering economy and its solution manual.



  • What is the difference between engineering economy and engineering economics?



Engineering economy and engineering economics are two terms that are often used interchangeably. However, some authors and institutions may distinguish them based on their scope and focus. Engineering economy is usually considered as a subset of engineering economics that deals with the analysis of economic alternatives in engineering projects. Engineering economics is usually considered as a broader discipline that covers not only engineering economy, but also other topics such as microeconomics, macroeconomics, industrial organization, public policy, etc.


  • What are the prerequisites for learning engineering economy?



Engineering economy does not require advanced mathematical skills or knowledge. However, it does require some basic skills and knowledge in algebra, calculus, statistics and accounting. It also requires some familiarity with engineering concepts and terminology. It is recommended that you review these topics before starting your engineering economy course.


  • What are the best resources for learning engineering economy?



The best resources for learning engineering economy are the book Engineering Economy by Hipolito Sta Maria and its solution manual. These resources provide comprehensive coverage of the concepts, methods and applications of engineering economy, with examples and exercises from various fields of engineering. They also provide clear, concise and accurate solutions to all the exercises in the book. You can also use other resources such as lectures, videos, websites, blogs, podcasts, etc. that supplement and complement the book and the solution manual.


  • How can I get the book and the solution manual?



You can get the book and the solution manual from various sources. You can buy them online or offline from reputable sellers or publishers. You can also borrow them from your library or your friends. You can also access them online or download them as PDF files from authorized websites or platforms. However, you should be careful and ethical when using these sources. You should not copy or share them without permission. You should also respect the intellectual property rights of the authors and publishers.


  • How can I contact the author of the book and the solution manual?



You can contact the author of the book and the solution manual by email or by social media. The author's email address is hipolito.stamaria@up.edu.ph. The author's social media accounts are Facebook (Hipolito Sta Maria), Twitter (@hipolitostamari), LinkedIn (Hipolito Sta Maria), etc. You can also visit the author's website at https://hipolitostamaria.com/. You can send your feedback, comments, questions, suggestions, etc. to the author. The author will appreciate your input and will try to respond to you as soon as possible.


71b2f0854b


About

Welcome to the group! You can connect with other members, ge...
Group Page: Groups_SingleGroup
bottom of page