Engineering Economy Applying Theory to Practice

by Eschenbach, Ted G.

• ISBN13: 9780195161526
• ISBN10: 0195161521
• Edition: 2nd
• Format: Hardcover
• Copyright: 2003-04-10
• Publisher: Oxford University Press

Summary

Thoroughly revised in this second edition, Engineering Economy: Applying Theory to Practice combines real-world problems minicases, and examples with a solid theoretical foundation in engineering economy. This innovative book covers all the standard topics included in the Fundamentals of Engineering (FE) Exam. It clearly illustrates concepts and methods-such as cost estimating, sensitivity analysis, probability, and multiple objectives-needed for successful application of engineering economy in industry practice. In addition, fully integrated Excel® spreadsheets throughout the text function as indispensable analytical tools for problem-solving and understanding. Engineering Economy: Applying Theory to Practice, 2/e , is a comprehensive introductory text suitable for upper-division undergraduate courses, graduate courses, or as a professional reference. NEW TO THE SECOND EDITION: · Unique insight into using Excel® functions for MACRS depreciation · New problems, examples, references, illustrations, graphs, and tables · Minicase studies at the ends of most chapters · Improved coverage of replacement analysis, inflation, and sensitivity analysis · An appendix on engineering economy-based accounting · More accessible presentation of analyzing the defender in replacement problems · Discussion of geometric gradients unified with other engineering economy factors · Comparison of mutually exclusive alternatives now precedes the treatment of constrained project selection/capital budgeting STUDENT CD-ROM-INCLUDED IN EVERY BOOK · INTERACTIVE MULTIPLE-CHOICE PROBLEMS: A set of web-based problems that tests and reinforces knowledge of key concepts · EXCEL® SPREADSHEET PROGRAM: Twenty-nine generators create quasi-random problem sets and solutions INSTRUCTOR SUPPLEMENTS · A CD-ROM containing PowerPoint® overheads with accompanying Excel spreadsheets · A SOLUTIONS MANUAL including answers to end-of-chapter problems and mini-cases, and transparency masters for all exhibits

Author Biography

Ted G. Eschenbach, P.E., is a Professor of Engineering Management at the University of Alaska, Anchorage, and a consultant at TGE Consulting. He is the author or coauthor of five leading engineering economy texts including Engineering Economic Analysis 8/e (2000). The Economic Analysis of Industrial Projects 2/e (1992), and Cases in Engineering Economy (1989). He is also on the editorial board of The Engineering Economist and was founding editor of Engineering Management Journal. In addition, he has served in a variety of positions for the following professional societies: ASEM, ASEE, and IIE.

Table of Contents

Preface	xxiii
PART 1 BASIC CONCEPTS AND TOOLS
Making Economic Decisions	3	(20)
What Is Engineering Economy?	4	(2)
Principles for Decision Making	6	(3)
Common Measure	6	(1)
Include All Consequences	6	(1)
Only Differences Matter	6	(2)
Make Separable Decisions Separately	8	(1)
Adopt a Systems Viewpoint	8	(1)
Use a Common Planning Horizon	8	(1)
Address Uncertainty	8	(1)
The Decision-Making Process	9	(3)
Define Problem	10	(1)
Choose Objective(s)	10	(1)
Identify Alternatives	11	(1)
Evaluate Consequences	11	(1)
Select	11	(1)
Implement	12	(1)
Audit	12	(1)
Summary of the Decision Process	12	(1)
The Environment for Decisions	12	(5)
Nonlinear Process	13	(1)
Iterative Modeling and Spreadsheets	14	(1)
One Decision in a Continuing Stream	14	(1)
Importance of Communication Skills	15	(1)
Analysis vs. Action	15	(1)
Private and Public Politics	16	(1)
The Role of Engineering Economy	17	(1)
Problem Too Small to Merit Engineering Economy	17	(1)
Time Period Too Short to Merit Engineering Economy	17	(1)
Engineering Economy Dominates Decision Making	17	(1)
Engineering Economy Is One Factor in Decision Making	17	(1)
Operational Economics	18	(2)
Summary	20	(3)
The Time Value of Money	23	(23)
What Is Interest?	23	(3)
Interest Rates Vary	24	(2)
Simple vs. Compound Interest	26	(2)
Simple Interest	26	(1)
Compound Interest	26	(2)
Cash Flow Diagrams	28	(3)
Categories of Cash Flow	28	(1)
Timing of Cash Flows	29	(1)
It is Better Not to Simplify the Cash Flow Diagrams	30	(1)
Drawing Cash Flow Diagrams with a Spreadsheet	31	(1)
Equivalence for 4 Loans	31	(3)
Equivalence Defined	31	(2)
Calculating the Interest for Each Year	33	(1)
Finding an Equivalent Present Worth	34	(1)
Limits on Equivalence	34	(2)
Equivalence Depends on the Interest Rate	34	(1)
Equivalence with Respect to Time Value of Money Only	34	(2)
Compounding Periods Shorter than a Year	36	(5)
Compounding Periods Are M per Year	36	(2)
Nominal vs. Effective Interest Rates	38	(3)
Continuous Compounding	41	(1)
Summary	41	(5)
Equivalence---A Factor Approach	46	(43)
Definitions and Assumptions	47	(2)
Assumptions	47	(1)
Definitions	48	(1)
Tables of Engineering Economy Factors	49
Factor Notation	50	(1)
Names of the Engineering Economy Factors	50	(1)
Format for the Interest Rate	50	(1)
Interpolation	50	(3)
Formulas vs. Factors	53
Single-Payment Factors (P and F)	43	(12)
Formula Development	53	(1)
Tabulated Factors	53	(1)
(P/F) and (F/P) as a Function of i and N	54	(1)
Uniform Flows	55	(6)
Formula Development	55	(1)
Tabulated Factors	56	(2)
Calculating an Interest Rate	58	(1)
(A/P), (A/F), (P/A), and (F/A) vs. i and N	59	(2)
Combining Factors	61	(4)
Deferred Annuities	61	(1)
Annuities Due for Prepaid Expenses and Other Beginning-of-Year Cash Flows	62	(1)
Constructing Formulas from Cash Flow Diagrams	63	(2)
Deriving One Factor's Formula From Another's	65	(1)
Arithmetic Gradients	65	(4)
Definition	65	(1)
Using the Arithmetic Gradient Factors	66	(3)
Arithmetic Gradient Formulas	69	(1)
Geometric Gradients	69	(7)
Geometric Gradients Change at a Constant Rate	69	(1)
The Basic Geometric Formula	69	(2)
The Four Geometric Rates	71	(1)
Inflation	71	(1)
Mathematical Model for PW	72	(1)
Present Worth Formula for a Single Geometric Gradient	72	(3)
Using Equivalent Discount Rates for Geometric Gradients	75	(1)
Summary	76	(13)
Appendix 3A Continuous Flow and Continuous Compounding	81	(1)
Definitions	81	(1)
Tabulated factors	82	(4)
Continuous vs. End-of-Period Assumptions	86	(3)
Spreadsheets and Economic Analysis	89	(24)
Using Spreadsheets for Economic Analysis	90	(1)
Why Use Spreadsheets?	90	(1)
The Elements of a Spreadsheet	90	(1)
Relative and Absolute Addresses	91	(1)
Spreadsheet Modeling	91	(5)
Using a Data Block	91	(1)
Defining Variables in a Spreadsheet	92	(1)
Using Relative and Absolute Addresses in Your Formulas	92	(1)
Explaining and Labeling your Formulas	93	(2)
Formatting Your Spreadsheets	95	(1)
Financial Functions in Spreadsheets	96	(5)
Spreadsheet Annuity Functions	96	(3)
Spreadsheet Block Functions	99	(2)
Examples Show Spreadsheet Models Can Be More Realistic	101	(4)
Using Spreadsheets to Get a Project Funded	105	(3)
Sensitivity Analysis	105	(1)
Creating Graphs	106	(1)
Documenting Data Sources	107	(1)
Summary	108	(5)
PART 2 ANALYZING A PROJECT
Present Worth	113	(25)
The PW Measure	113	(2)
Is PW > 0?	113	(2)
Standard Assumptions	115	(1)
Examples of When to Use PW	115	(4)
Rolling Back Irregular Cash Flows for PW Calculations	119	(3)
Salvage Values	122	(1)
Capitalized Cost and Perpetual Life	123	(2)
Staged Projects	125	(2)
Cost of Underutilized Capacity	127	(1)
Spreadsheets and Shorter Periods	128	(2)
Spreadsheets and More Exact Models	130	(2)
Summary	132	(6)
Equivalent Annual Worth	138	(27)
The Equivalent Annual Worth Measure	139	(1)
Assumptions and Sign Conventions	139	(1)
Examples of Annual Evaluations	140	(2)
Finding the EAC of ``Irregular'' Cash Flows	142	(3)
EAC of a Single Interior Cash Flow	142	(2)
Deferred Annuities to Regular Annuities	144	(1)
EAC Formulas for Salvage Values and Working Capital	145	(2)
Capital Recovery with Salvage Values	145	(1)
Working Capital	145	(2)
Perpetual Life	147	(3)
Assumption and Formulas	147	(1)
N vs. Infinity	148	(1)
Arithmetic Gradients and Perpetual Life	148	(2)
Repeated Renewals	150	(5)
Repetition for Every Subperiod	151	(1)
Capitalized Cost	152	(1)
Repeated Renewals with Neither an Initial nor a Final Cash Flow	152	(3)
Spreadsheets and Analyzing Loan Repayments	155	(5)
Finding the Balance Due	156	(1)
Shortening the Time to Payoff by Increasing Payments	156	(3)
How Much Goes to Interest? How Much Goes to Principal?	159	(1)
Summary	160	(5)
Internal Rate of Return	165	(28)
Internal Rate of Return	166	(1)
Assumptions	167	(4)
Loans	168	(1)
Investments	168	(1)
Multiple Sign Changes	169	(1)
Reinvestment Assumption	169	(1)
Applying the IRR Measure	169	(2)
Finding the IRR	171	(4)
Hints and Shortcuts for Finding the IRR	172	(3)
Loans and Leases	175	(4)
Spreadsheets and the IRR	179	(4)
RATE Investment Function	179	(2)
IRR Block Function	181	(2)
Multiple Sign Changes	183	(3)
Mineral Extraction	183	(1)
Environmental Restoration	184	(1)
Staged Construction or Expansion	185	(1)
Summary of Multiple Sign Change Consequences	185	(1)
Project Balances over Time	186	(1)
Modified Internal Rate of Return (MIRR)	187	(1)
Summary	188	(5)
Benefit/Cost Ratios and Other Measures	193	(22)
Measures of Economic Attractiveness	194	(1)
Conceptual Definitions	194	(1)
Frequency and Patterns of Use	194	(1)
Benefit/Cost Ratio	195	(2)
PW Indexes	197	(3)
Mathematical Definition of PW Indexes	197	(3)
Future Worth	200	(1)
Payback Period	200	(4)
Difficulties with Payback Period	202	(1)
When Can Payback Be Used?	203	(1)
Discounted Payback	204	(3)
Why to Use or Not Use	204	(1)
Examples of Use	204	(3)
Breakeven Volume	207	(1)
Summary	208	(7)
PART 3 COMPARING ALTERNATIVES AND PROJECTS
Mutually Exclusive Alternatives	215	(29)
Applying Engineering Economy to Engineering Design	216	(1)
Key Assumption Is the Interest Rate or Minimum Attractive Rate of Return	216	(1)
Common Assumptions	216	(1)
Comparing Alternatives with Lives of the Same Length	217	(2)
PWs and Explicitly Comparing Different-Length Lives	219	(3)
Approaches For Defining a Problem Horizon	219	(3)
Choosing the Best Horizon	222	(1)
Mutually Exclusive Alternatives Without a Common Horizon	222	(1)
EAWs and EACs and Implicitly Comparing Different-Length Lives	222	(4)
Using EAC for Different-Length Lives Is a Robust Approach	226	(2)
Robustness due to Discounting	226	(2)
Robustness due to Estimated Lives	228	(1)
Benefit/Cost and IRR Comparisons of Mutually Exclusive Alternatives Require Incremental Analysis	228	(4)
Defender/Challenger Analysis	232	(2)
PW, EAW, and IRR Have the Same Interest Rate Assumption	234	(2)
Using the Spreadsheet GOAL SEEK Tool to Calculate Incremental IRRs	236	(1)
Summary	237	(7)
Replacement Analysis	244	(26)
Why Is Equipment Replaced, Retired, or Augmented?	245	(3)
Reduced Performance	245	(1)
Altered Requirements	245	(1)
Obsolescence	246	(1)
Risk of Catastrophic Failure or Unplanned Replacement	247	(1)
Lease or Rental vs. Ownership	247	(1)
Summary of Reasons for Replacement	247	(1)
Old and New Are Mutually Exclusive	248	(1)
Different-Length Lives	248	(1)
Economic Life	248	(1)
Sunk Costs, Risks, and Short-Term Cost Savings	249	(3)
Sunk Costs	249	(1)
Risks of the New often Far Exceed Those of Extending the Old	250	(1)
Short-Term Cost Savings Are Not Enough to Compare Repair vs. Replace	251	(1)
Optimal Challengers	252	(2)
Challenger's Optimal or Economic Life	252	(1)
Cost Curve for the Challenger's Economic Life	253	(1)
Optimal Defenders	254	(6)
Typical Defender's Economic Life	254	(2)
Incorrect Assumptions for Minimizing the Defender's EAC	256	(2)
When to Calculate the Defender's Best EAC	258	(1)
Flow Chart to Summarize the Decision Rules	259	(1)
Optimal Capacity Problems	260	(2)
Estimating Future Challengers	262	(1)
A Simple Rule of Thumb	262	(1)
MAPI	262	(1)
Replacement and Repair Models	263	(3)
Classifying Replacement Models	264	(1)
Block Replacement	264	(2)
Summary and Conclusions	266	(4)
Constrained Project Selection	270	(35)
The Constrained Project Selection Problem	271	(4)
Mutually Exclusive Choices vs. Constrained Project Selection	271	(1)
Budgets and Project Selection	271	(2)
Problem Size	273	(1)
Budget Flexibility and Contingency Allowances	274	(1)
Ranking Projects	275	(2)
Investment Opportunity Schedule	275	(1)
Ranking by PW or EAW Does Not Work	276	(1)
Strengths and Weaknesses of IRR	276	(1)
Determining the Minimum Attractive Rate of Return Using the Opportunity Cost of Capital	277	(4)
Minimum Attractive Rate of Return (MARR)	279	(2)
A Theoretically Optimal Approach for Determining the Capital Budget	281	(1)
Capital Limits in the Real World	282	(3)
Why Capital Limits Are Imposed	282	(1)
Budget Limits and the Cost of Capital	283	(2)
Matching Assumptions to the Real World	285	(5)
Assumption of Indivisible Projects and Increments of Financing	285	(2)
Assumption of Project Independence	287	(1)
Assumption of Simultaneous Evaluation	288	(1)
Stability and Reinvestment Assumptions	289	(1)
Present Worth Indexes and Benefit/Cost Ratios	290	(1)
Using the SORT Spreadsheet Tool	291	(1)
Using Spreadsheet Investment and Block Functions	291	(1)
Using the SORT Tool	291	(1)
Summary	292	(13)
Appendix 11A Mathematical Programming and Spreadsheets	297	(2)
Using Spreadsheets to Solve Linear Programs	299	(1)
Disadvantages of Mathematical Programming Models	300	(5)
PART 4 ENHANCEMENTS FOR THE REAL WORLD
Depreciation	305	(28)
Introduction	306	(2)
Definitions	308	(1)
Basic Depreciation Methods	308	(5)
Straight-Line Method	308	(2)
Declining Balance Method	310	(1)
SOYD Method	311	(2)
Units-of-Production Method	313	(1)
Accelerated Cost Recovery	313	(4)
Accelerated Cost Recovery System (ACRS)	313	(1)
Modified Accelerated Cost Recovery System (MACRS)	314	(3)
Alternate MACRS	317	(1)
Gains and Losses on Sales and Recaptured Depreciation	317	(2)
Optimal Depreciation Strategies	319	(2)
PW of a Depreciation Schedule	321	(2)
Straight-Line Method	321	(1)
Declining Balance Method	321	(1)
SOYD Method	321	(1)
MACRS	321	(2)
Depletion of Resources	323	(2)
Cost Depletion	324	(1)
Percentage Depletion	324	(1)
Section 179 Deduction	325	(1)
Recapture for Section 179 Assets	326	(1)
Spreadsheet Functions for Depreciation	326	(2)
Using VDB for MACRS	327	(1)
Summary	328	(5)
Income Taxes	333	(27)
Principles of Income Taxes	334	(1)
Income, Property, Sales, and Value Added Taxes	334	(1)
Point of View	334	(1)
Principles of Calculation	335	(1)
Progressive Marginal Tax Rates	335	(2)
Effective Tax Rate for State, Local, and Federal Taxes	336	(1)
Finding Taxable Income When Including Depreciation	337	(2)
Categorizing Before-Tax Cash Flows	338	(1)
Calculating After-Tax Cash Flows and EACs Using Tables or Spreadsheets	339	(3)
Selecting an After-Tax IRR	341	(1)
Calculating ATCFs and EACs Using Formulas	342	(3)
Straight-Line Depreciation	342	(1)
MACRS Depreciation	343	(1)
Sum-of-the-Years'-Digits (SOYD) Depreciation	344	(1)
Investment Tax Credits and Capital Gains	345	(2)
History	345	(1)
Computing and Using an ITC	345	(2)
Capital Gains	347	(1)
Interest Deductions and an After-Tax IRR	347	(4)
Leverage	350	(1)
Summary	351	(9)
Appendix 13A Individual Income Taxes	357	(3)
Public-Sector Engineering Economy	360	(27)
Defining Benefits, Disbenefits, and Costs	361	(2)
Agencies that Do Not Serve the Public Directly	361	(1)
``Benefits to Whomsoever They Accrue''	362	(1)
Why are Public-Sector Problems Difficult?	363	(3)
Quantifying and Valuing Benefits	363	(1)
Long Problem Horizons	364	(1)
Probabilities of Rare Events	364	(1)
Multiple Objectives that May Conflict	365	(1)
Interest Groups with Differing Perspectives	365	(1)
Selecting an Interest Rate	365	(1)
Summary	366	(1)
Correct Methods and Interest Rates	366	(5)
Evaluating a Single Project	366	(2)
Criteria for Mutually Exclusive Alternatives	368	(1)
Criteria for Constrained Project Selection	369	(1)
Deferred Maintenance	370	(1)
Whose Point of View?	371	(3)
What is Internal? What is External?	371	(1)
Federal Subsidies	372	(1)
Consumers' Surplus	373	(1)
Allocating Costs to Benefit Recipients	374	(2)
Valuing the Benefits of Public Projects	376	(3)
A Life's Present Value	376	(2)
Standards of Federal Agencies	378	(1)
Risk and Valuing Public Benefits	379	(1)
Cost-Effectiveness	379	(2)
Summary	381	(6)
Inflation	387	(36)
Defining and Measuring Inflation and Deflation	388	(4)
The Consumer Price Index (CPI)	388	(2)
Annual Inflation Rate	390	(1)
Producer Price Indexes	391	(1)
Consistent Assumptions for Interest Rates and Cash Flow Estimates	392	(4)
Inflation Terminology	392	(1)
Matching Interest Rates to Inflation Assumptions	393	(1)
Differential Inflation	393	(2)
Estimating Differential Inflation	395	(1)
Accuracy of Inflation Estimates	395	(1)
Solving for PW or EAC when Including Inflation	396	(4)
Inflation Examples with Multiple Inflation Rates	400	(3)
Leases and Other Prepaid Expenses	403	(2)
Depreciation and Loan Payments	405	(7)
Inflation and Other Geometric Gradients	412	(4)
The Four Geometric Gradients	412	(2)
Formulas Based on the Equivalent Discount Rate	414	(2)
Summary	416	(7)
PART 5 DECISION-MAKING TOOLS
Estimating Cash Flows	423	(23)
Introduction	424	(2)
Importance of Cost Estimating	424	(1)
Impact of Early Project Decisions	424	(2)
Cash Flow Estimating and Life-Cycle Stages	426	(2)
Hidden Costs	426	(1)
Costs during the Project Life Cycle	426	(2)
Cash Flow Estimating Standards	428	(2)
Stages of Cash Flow Estimating	428	(1)
Conceptual Design	428	(1)
Preliminary Systems Design	429	(1)
Final Systems Design	429	(1)
Cost Estimate Definitions and Accuracy	429	(1)
Design Criteria and Specifications	430	(2)
Design Criteria	430	(1)
Specifying Performance	430	(2)
Modeling the Base Case	432	(1)
Using Indexes for Order-of-Magnitude Estimates	433	(2)
Using Capacity Functions for Order-of-Magnitude Estimates	435	(2)
Using Growth Curves	437	(2)
Using Learning Curves	439	(2)
Using Factor Estimates	441	(1)
Summary	442	(4)
Sensitivity Analysis	446	(26)
What Is Sensitivity Analysis?	447	(3)
Sources of Uncertainty	447	(1)
Breakeven Charts	447	(2)
Why Do Sensitivity Analysis?	449	(1)
Uncertain Data and Its Impact	450	(2)
Defining the Limits of Uncertain Data	450	(2)
Estimating Sensitivities	452	(1)
Techniques for Sensitivity Analysis	452	(4)
Scenarios	452	(1)
Relative Sensitivity of the Economic Criteria to Different Variables	453	(1)
Tabulating Relative Sensitivity Analysis	454	(1)
Tornado Diagram	454	(1)
Spiderplot	454	(1)
More Advanced Techniques	455	(1)
Spiderplots	456	(2)
Defining Spiderplots	456	(1)
Interpreting a Spiderplot	456	(2)
Constructing a Spiderplot	458	(4)
By Hand	458	(1)
Using a Spreadsheet	459	(3)
Choosing a y-Axis	462	(1)
Multiple Alternatives	462	(4)
Spiderplots	462	(3)
Scenarios	465	(1)
Sensitivity Analysis with Multiple Variables	466	(2)
Summary	468	(4)
Uncertainty and Probability	472	(30)
Probabilities	473	(2)
Computing Expected Values	475	(2)
Choosing Alternatives Using Expected Values	477	(2)
Economic Decision Trees	479	(5)
Sequential Decisions	481	(1)
Cash Flows over Time	482	(2)
Risk	484	(3)
Risk/Return Trade-offs	487	(4)
Buying Insurance	487	(1)
Balancing Risks and Returns	487	(3)
Efficient Frontier for Risk/Return Trade-offs	490	(1)
Approaches to Risk/Return Trade-offs	490	(1)
Probability Distributions for Economic Outcomes	491	(6)
Probability Distributions with Multiple Independent Variables	491	(2)
N and i Need Complete Distributions for Exact Answers	493	(2)
Continuous and Discrete Probability Distributions	495	(1)
Simulation	496	(1)
Summary	497	(5)
Multiple Objectives	502	(83)
Multiple Attributes	503	(4)
Definitions and Trade-offs	503	(1)
Attribute Categories	504	(1)
Selecting Multiple Objectives	505	(2)
Summary	507	(1)
Process of Evaluating Multiple Objectives	507	(2)
Eliminating Dominated and Unsatisfactory Alternatives	509	(1)
Decision Rules for Choosing the Best Alternative	509	(1)
Identifying the Attributes	509	(2)
Evaluating the Alternatives	511	(3)
Graphical Techniques	514	(1)
Shaded Circles and Squares	514	(1)
Polar Graph	514	(1)
Numerical Scales for Evaluation	515	(4)
Numerical Variables	515	(1)
Choosing the Best and Worst Case	516	(2)
Verbal Variables	518	(1)
Missing Values	518	(1)
Additive Models	519	(3)
Direct Assignment of Weights	519	(1)
Subjective Assignment of Importance Ratings	519	(1)
Tabular Additive Models	520	(1)
Graphical Additive Models	521	(1)
Closing Comment on Additive Models	521	(1)
Hierarchical Attributes and Objectives	522	(2)
Summary	524	(4)
Appendixes
A. Accounting Effects in Engineering Economies	528	(23)
A.1 Role of Accounting	529	(1)
A.2 General Accounting	530	(1)
Business Transactions	530	(1)
A.3 Balance Sheet	531	(1)
Assets	532	(1)
Liabilities	532	(1)
Equity	532	(1)
Financial Ratios Derived from Balance Sheet Data	533	(1)
A.4 Income Statement	534	(1)
Financial Ratios Derived from Income Statement Data	535	(1)
Linking the Balance Sheet, Income Statement, and Capital Transactions	536	(1)
A.5 Traditional Cost Accounting	536	(1)
Direct and Indirect Costs	537	(1)
Indirect Cost Allocation	537	(1)
Problems with Traditional Cost Accounting	538	(1)
A.6 Activity-Based Costs	538	(1)
Definition	539	(2)
ABC Provides More Accurate Costs	541	(1)
Using ABC	541	(2)
Economic Justification Using ABC Data	543	(1)
Timely and Accurate Data	544	(1)
A.7 Summary	544	(7)
B. End-of-Period Compound Interest Tables	551	(34)
Index	585