Book excerpt: The Basics of Engineering Economy is designed to assist students in understanding and using the fundamental concepts and methods of economic evaluation to materially enhance rational data-centered decision-making in all these dimensions. This text covers the basic techniques and applications of engineering economy for all disciplines in the engineering profession. The third edition concentrates on fundamental techniques and their applications, the efficient use of spreadsheets, and a rich coverage of personal financial situations in which engineering economy techniques can be applied easily and rapidly. The text presents the topics in condensed formats when compared to the larger text Engineering Economy.