Glagola, Charles R. : University of Florida in Gainesville
Dr. Glagola is currently an assistant professor in the Department of Civil Engineering, at the University of
Florida in Gainesville, specializing in the area of Construction Engineering and Management. Research interests
include: cost engineering, value engineering, total quality management, innovative contracting methods and engineering
education. Dr. Glagola has been heavily involved in the curriculum innovation and renewal process at the local
and national levels and has been working with the Southeast University and College Coalition for Engineering Education
(SUCCEED). Other projects include innovative contracting methods and quality control for the Florida Department
of Transportation (FDOT). He has published articles in the Journal of Construction of the American Society of Civil
Engineers, Journal of Science and Engineering Ethics, and has presented papers at national meetings of the American
Society of Engineering Education and the Transportation Research Board.
Dr. Glagola is a member of the American Society of Civil Engineers, the American Society for Quality Control, the
American Society for Engineering Education as well as other professional organizations. He belongs to Chi Epsilon,
the national civil engineering honorary, and Tau Beta Pi, the national engineering honorary. Dr. Glagola is actively
involved with student organizations, serving as an advisor to the student chapter of the American Society of Civil
Engineers. In his student related activities, Dr. Glagola teaches the engineering economy review course for the
Fundamentals of Engineering (FE) exam which is a graduation requirement for civil engineering students at the University
of Florida.
Preface
This text is especially designed for those engineering students and professional practitioners who are new to
the study of engineering economics. The language, explanations, examples, and illustrative figures are carefully
selected to present the subject matter in a straightforward manner that will enable the reader to comprehend and
use the material in the solution of practical everyday problems. In so doing, we have included 215 illustrative
figures, 170 example problems fully worked and explained, together with 9 problems available for homework assignment
or practice. About one-half of these problems have answers included with the problem. Solutions to all the problems
are available to the teaching faculty in the Solutions Manual available from the publisher.
This third edition is in response to the enthusiastic reception afforded the previous edition which were adopted
as a practice-oriented text in many colleges and universities around the nation. The authors gratefully appreciates
these adoptions and wishes to thank all of those who made it possible.
As in most professional subject areas, the scope of applications of engineering economy is widening continually,
and this third edition has been updated to reflect many of these new applications. The first six chapters, which
deal with an introduction to time-value-of-money concepts, are broadened with updated samples and homework problems.
Since there is usually a choice of alternative courses of action, Chapters 7 through 14 demonstrate a variety of
basic methods for comparing alternative proposals.
To deal competently with private-sector cost analysis problems the income tax consequences must be taken into
account. Therefore, Chapter 15 begins a series of chapters dealing with a variety of after-tax situations likely
to be encountered by the practicing engineer. The authors realize that engineering students and practitioners may
not be working with a familiar subject area when they consider tax matters. Therefore, these chapters are written
carefully in language familiar to engineers. This third edition has been updated to reflect the current Tax Reform
Act. In addition to the new features of the act, other traditional features of tax law are included, both for a
sense of historical perspective, as well as in anticipation that many of these traditional features likely will
be reintroduced into U.S. tax law within the foreseeable future. Chapters 18 and 19 explain how to determine the
profitability of investments involving real estate, when to sell, and when to keep. The text is well illustrated
with specific examples. Chapter 20 presents straightforward solutions to the problems of determining the optimum
replacement time for a currently owned piece of equipment, and what sort of life-cycle time to expect from the
replacement equipment.
Since computers are readily available to both students and professional practitioners, several examples of spread
sheet programs have been included to facilitate problem solving.
Chapter 21 on double gradients contains updated material dealing with escalating cost which is an often overlooked
problem area that has frustrated engineers for many years. For example, in doing a cost analysis of an excavator,
when the productivity (in cubic yards per hour) is decreasing with age, but the price of the excavation (in dollars
per cubic yard) is also changing with time, the double gradient can eliminate potentially significant errors that
are inherent in older methods of solution.
As in previous editions the authors again acknowledge with deep gratitude the very helpful input to this text
from alert, inquiring students, as well as conscientious faculty and professional practitioners. Those of you who
have worked seemingly endless hours on favorite projects know that endeavors like this are made possible in large
part by the patience and loving support of wife and family to whom we owe so much in helping bring this edition
to fruition. A sincere word of thanks is due also to the understanding and hardworking editor and staff at Addison-Wesley
Longman
Courtland A. Collier
Charles R. Glagola
Summary
Features :
Addresses important concepts in civil engineering practice with numerous worked examples
Provides a logical development of economic analysis principles in the first six chapters
Promotes understanding of the relationship between time and money by providing numerous cash flow diagrams
Covers advanced topics like equipment replacement and double gradients in more depth than competing books
New to the Third Edition :
Contains 165 revised examples and additional cash flow diagrams to provide greater opportunity for appreciating
economic principles in practice
Offers worked spreadsheet examples that allow readers to work problems with both conventional and computer
methods
Provides updated information for current tax laws
Table of Contents
I. BASIC PRINCIPLES.
1.Quantifying Alternatives for Easier Decision Making.
2. The Value of a Single Payment New Compared to a Single Payment in the Future.
3. The Value of One Future Payment Compared to a Uniform Series of Payments.
4. The Value of One Present Payment Compared to a Uniform Series of Payments.
5. Arithmetic Gradient, G: The Constant Increment to a Series of Periodic Payments.
6. Geometric Gradient: The Constant Percentage Increment.
II. COMPARING ALTERNATIVE PROPOSALS.
7. Present Worth Method of Comparing Alternatives.
8. Annual Payments Method for Comparing Alternatives.
9. Future Worth Method of Comparing Alternatives.
10. Rate of Return Method.
11. Incremental Rate of Return (ROR) on Required Investments.
12. Break-Even Comparisons.
13. Probability Evaluation.
14. Benefit/Cost Analysis.
III. EVALUATING ALTERNATIVE INVESTMENTS.
15. Taxes.
16. Depreciation.
17. Bond Financing for Public Works and Corporate Investment.
18. Home Ownership and Mortgage Financing: Owning Versus Renting.
19. Investment Property.
20. Equipment Replacement Analysis.
21. Double Gradients, Arithmetic and Geometric Introduction.
22. Utility Rate Studies.
23. Inflation.
