Engineering economics and financial accounting have therefore always been integral parts of business studies. Besides, courses on these subjects are of recent origin in undergraduate engineering disciplines. The book presents the concepts and methods of Engineering economics and financial accounting, which help engineer to arrive at the most appropriate solutions to business problems. The objective of this book is not only to present the theory of the firm but also to bridge the gap between economic theory and practical application. The emphasis is on presenting modern economic and financial analysis in a way that is intuitive, interesting, and useful for students who have had no prior exposure to these fields.