This book provides guidance to the administrative personnel on how economic principles and theories can be applied to ensure the most efficient performance of their engineering functions. The ';engineering function' involves the activities and works of designing and constructing machinery, engines, electrical devices, and roads and bridges. The performance of all these activities involves financial, human and time costs and yields benefits to the performers of these activities and to the society as whole. A comprehensive analysis of how economic concepts and economic theories can be applied to resolve the economic problems confronted by the people as consumers, producers, factor owners, and marketers has been provided in the first edition of this book. In this new edition, some important contributions have been to the subject matter of the Engineering Economics to make its scope more comprehensive.

Primarily, a new Part, i.e., Part V, has been added to this revised edition containing two new chapters: Ch. 21: Cash Flows, Investment and Equivalence, and Ch. 22: Time Value of Money. The purpose of Ch. 21 is to analyse how cash flows and investments made by the business firms affect the economy and create opportunities for further investments. And Ch. 22 highlights the reasons for change in the value of money and its effects on business transactions. The second important contribution to this revised edition is the addition of twelve Case Studies to economic theories of the relevant chapters. The objective of adding Case Studies to the book is to illustrate how economic theories can be and are applied to test their theoretical validity and to test the efficacy of managerial decisions. Incidentally, the Case Studies have been provided by some reputed academic faculties.