Designed as a textbook for undergraduate students in various engineering disciplines - Mechanical, Civil, Industrial Engineering, Electronics Engineer-ing and Computer Science—and for postgraduate students in Industrial Engineering and Water Resource Management, this comprehensive and well-organized book, now in its Second Edition, shows how complex economic decisions can be made from a number of given alternatives. It provides the managers not only a sound basis but also a clear-cut approach to making decisions. These decisions will ultimately result in minimizing costs and/or maximizing benefits. What is more, the book adequately illustrates the concepts with numerical problems and Indian cases. While retaining all the chapters of the previous edition, the book adds a number of topics to make it more comprehensive and more student friendly.