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　　This is a textbook for engineering and management/business undergraduates and postgraduate students and a reference for practicing engineers or managers who are familiar with their projects but less familiar with financial/economic analysis methods. The book is divided into two parts.

　　Part 1 covers all the basic concepts and theories and provides the readers with a good understanding of the financial and economic analysis on the feasibility of projects. Plenty of examples are used to illustrate the theories, arguments and calculations.

　　 Part 2 consists of case studies on both financial and economic feasibility studies. Readers should be able to conduct their own financial and economic analyses by following the procedures and methodo-logy of the examples given.

　　In this new edition, the chapters have been revised and expanded with the latest theories and data added, especially the most up-dated information on the development of the theories of internal rate of return and net present worth.