In Volume 2: Probabilistic Models, author M. A. Mian presents the concepts of decision analysis, incorporating risk and uncertainty as applied to capital investments. In the expanded and updated second edition of Volume 2, Mian integrates new advancements and clarifies concepts to facilitate their understanding. Each topic is introduced, followed by a brief discussion related to its application in practice and a solved example. Includes a companion CD with applications, spreadsheets, and tables that expand the practical application of the book’s material.

In this new second edition, M. A. Mian has expanded and updated the first volume of Project Economics and Decision Analysis by incorporating new advancements and clarifying concepts to facilitate their understanding. New to the second edition of Project Economics and Decision Analysis, Volume 1 is a section on netback pricing and indexed netback pricing. Additionally, the new edition expands the weighted average cost of capital (WACC) concept for better comprehension and to recognize its weakness in practice. The concept of unit technical cost, also known as long-run marginal cost (LRMC), has been expanded as well to aid with its calculation and application.