Financial decision-making for engineers / Colin K. Drummond.
"A much-needed practical guide, particularly suited for readers with engineering or science backgrounds, that provides the financial decision-making skills needed in the business world For engineers with little or no business background this book provides the financial decision-making skills ne...
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Full Text (via ProQuest) |
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| Main Author: | |
| Format: | eBook |
| Language: | English |
| Published: |
New Haven :
Yale University Press,
[2018]
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| Subjects: |
Table of Contents:
- Cover; Half Title; Title; Copyright; Dedicated; Contents; Preface; 1 Decision-Making; 1.1 Three tactical challenges; 1.2 Three perspectives; 1.2.1 Transaction-based perspective; 1.2.2 Engineering management viewpoint; 1.2.3 Emphasis on decision-making; 1.3 Financial frame of reference; 1.4 Focus on financial decision-making; 1.5 The bottom line: Transactions; 1.6 Discussion problems; 2 Financial Statements; 2.1 Learning objectives; 2.2 Jumpstarting our understanding; 2.3 Foundational topics; 2.3.1 The outside view; 2.3.2 What matters most?; 2.3.3 Naming of financial statements and aliases.
- 2.3.4 Overview of financial statements2.3.5 Accounting to support financial statements; 2.3.6 Brief note on ethics; 2.3.7 Guidelines evolve; 2.4 Financial statement ratios; 2.4.1 Ratios provide performance insight; 2.4.2 Normalization of line items; 2.5 Special considerations for long-term assets; 2.5.1 Some general features of long-term assets; 2.5.2 Depreciation; 2.5.3 Opportunities for fraud and abuse; 2.6 Balance sheet; 2.7 Income statement; 2.8 Statement of cash flows; 2.9 Statement of owners' equity; 2.10 Summary; 2.11 Problems to explore; 3 Time Value of Money; 3.1 Learning objectives.
- 3.2 Equivalence is key3.3 A few symbols: The ""fab five; 3.4 Compound interest is the norm; 3.5 Cash flow diagrams; 3.6 Engineering economy computational factors; 3.6.1 Simple worked problems; 3.7 Nominal and effective interest rates; 3.8 Summary; 3.9 Problems to work; 4 Applications of the Time Value of Money; 4.1 Learning objectives; 4.1.1 Supplementary reading; 4.1.2 Questions to consider; 4.1.3 Five chapter concepts; 4.2 Net present value; 4.3 Equivalent uniform annual worth; 4.4 Rate of return; 4.4.1 Minimally acceptable rate of return; 4.4.2 Internal rate of return; 4.5 Payback period.
- 4.5.1 Simple estimate4.6 EUAW for payback period; 4.7 Bonds; 4.7.1 Bonds as a debt instrument to raise money; 4.7.2 Primary and secondary bond markets; 4.7.3 Coupon interest rate; 4.7.4 What is a bond worth?; 4.8 Summary comments; 4.9 Problems to work; 5 Comparing Alternatives; 5.1 Learning objectives; 5.2 Framework for comparing alternatives; 5.3 Mutual exclusivity and independence; 5.4 Evaluation of alternatives; 5.5 Before-tax and after-tax issues; 5.6 Comparable basis issues; 5.6.1 Technical comparability; 5.6.2 Period comparability: Repeatability assumption.
- 5.6.3 Repeatability of useful life5.7 Decision trees; 5.8 ""Lease versus buy"" decisions; 5.8.1 FASB view of a lease; 5.8.2 Off-balance-sheet financing; 5.8.3 Proposed FASB lease classification changes; 5.8.4 Advantages and disadvantages of leasing; 5.8.5 Before-tax ""lease versus buy"" scenario; 5.8.6 After-tax ""lease versus buy"" scenario; 5.9 Summary; 5.10 Problems to work; 6 Intellectual Property as an Asset for Wealth Creation; 6.1 Learning objectives; 6.2 Roadmap for wealth creation; 6.2.1 Books to explore; 6.2.2 Three links to explore; 6.2.3 Politics to explore.