This innovative engineering economy text features spreadsheets, pedagogical graphs, and practical examples for immediate student and industry application. It combines the real-world orientation of Eschenbach's pioneering casebook, Cases in Engineering Economy, with the theoretical foundationof his second edition of Bussey's classic advanced text, The Economic Analysis of Industrial Projects. Eschenbach's Engineering Economy: Applying Theory to Practice, Second Edition, thoroughly covers the basics of engineering economy that are included in every course and covered in the FE exam. Italso includes the tools and concepts--such as cost estimating, sensitivity analysis, probability, and multiple objectives--that are needed to successfully apply engineering economy in industry practice outside the classroom. This second edition has been thoroughly revised; it incorporates adopterand reviewer suggestions in addition to addressing the needs of hundreds of engineering instructors. New features include: BL Simplified spreadsheet presentations that focus on Excel BL A unique insight into how to use Excel functions for MACRS depreciation BL Improved coverage of replacement analysis, inflation, and sensitivity analysis BL New problems, examples, and references BL A unified discussion of general engineering economy factors now includes arithmetic and geometric gradients BL The comparison of mutually exclusive alternatives now precedes discussion of constrained project selection/capital budgeting