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.