This is a textbook for engineering 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 methodology 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.‎