an introduction to the concepts of time value of money and the related decision criteria used to evaluate investments and, more importantly, the proper application of decision criteria in before-tax and after-tax investment situations. The first six chapters present time value of money and decision criteria on a before-tax basis, addressing the application of economic evaluation criteria to different investment situations and the use of these criteria in light of inflation, risk and uncertainty. Later chapters focus on understanding after-tax cash flow, analyzing projects with after-tax cash flow and the related issues and terminology associated with computing Federal and, in many cases, State income tax liability in the United States. Chapter twelve addresses personal investment considerations including discussion of stocks, equity options, commodity futures and other investments involving life insurance and retirement. While the text has a number of examples from the oil and gas and mining industry, it contains a number of generic scenarios that make it applicable for students in all engineering disciplines as well as those involved in geology, geophysics, business, accounting, finance, management, operations research and virtually anyone interested in economic evaluation issues. Problems at the end of each chapter provide the reader with a comprehensive approach to evaluating economic alternatives.

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