Much of the content has been streamlined to provide materials in depth and to reflect the challenges in contemporary engineering economics. Some of the highlighted changes are as follows: All the chapter opening vignettes – a trademark of Fundamentals of Engineering Economics – have been revised or completely replaced with more current and thought-provoking examples from both service and manufacturing sectors. Self-Test Questions have been added at the end of each chapter (131 problems in total), and worked-out solutions to the questions are provided in Appendix A. These questions are formatted in a style suitable for Fundamental Engineering Exam review and created to help students prepare for a typical class exam common to introductory engineering economic courses. The Benefit—Cost Analysis has been moved to Chapter 8 , as a part of measure of investment chapters. The profitability index is included in this chapter. Most of the end-of-chapter problems are revised to reflect the changes in the main text. There are 708 problems, including 131 self-test questions, 43% of which are new or updated. Various Excel® spreadsheet modeling techniques are introduced throughout the chapters, and the original Excel files are provided online at the Companion Website. Most worksheets have been redesigned with graphical outputs. Some other specific content changes made in the third edition are as follows: In Chapter 1, a cost reduction (Apple’s iPad ® ) project is introduced. In Chapter 2, a new retirement planning example is introduced. In Chapter 4, all CPI- and inflation-related data have been updated. In Chapter 5, an example of comparing mutually exclusive revenue projects is provided. In Chapter 6, a section on capital cost has been expanded with an automobile ownership example. In Chapter 8, benefit—cost contents have been streamlined, and a new section on profitability index has been created. In Chapter 11, a section on risk-adjusted discount rate approach is expanded in which the risk element is incorporated through the cost of capital. In Chapter 13 , all financial statements for Lam Research Corporation have been updated, and a new set of financial ratio analysis is provided. Investment strategies have been added as a part of managing personal financial asset under uncertainty.