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  • Engineering Economic Analysis

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    WunNa
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    The document discusses the topics of engineering economic analysis, including making economic decisions, estimating costs, interest calculations, present worth analysis, uncertainty, depreciation, taxes, replacement, inflation, rates of return, and capital budgeting. It outlines the 9 steps for engineering economic decision making - defining the problem, listing alternatives, determining relevant cash flows, calculating economic measures, incorporating risk and uncertainty, final consideration of non-economic factors, final recommendation, implementation, and review. Examples are provided to illustrate the decision making process.

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    The document discusses the topics of engineering economic analysis, including making economic decisions, estimating costs, interest calculations, present worth analysis, uncertainty, depreciation, taxes, replacement, inflation, rates of return, and capital budgeting. It outlines the 9 steps for engineering economic decision making - defining the problem, listing alternatives, determining relevant cash flows, calculating economic measures, incorporating risk and uncertainty, final consideration of non-economic factors, final recommendation, implementation, and review. Examples are provided to illustrate the decision making process.

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    118 views8 pages

    Engineering Economic Analysis

    Uploaded by

    WunNa
    The document discusses the topics of engineering economic analysis, including making economic decisions, estimating costs, interest calculations, present worth analysis, uncertainty, depreciation, taxes, replacement, inflation, rates of return, and capital budgeting. It outlines the 9 steps for engineering economic decision making - defining the problem, listing alternatives, determining relevant cash flows, calculating economic measures, incorporating risk and uncertainty, final consideration of non-economic factors, final recommendation, implementation, and review. Examples are provided to illustrate the decision making process.

    Copyright:

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    of 8

    ENGINEERING

    ECONOMIC
    ANALYSIS
    WunNa
    Topics
    Making Economic Decisions
    Engineering Costs and Cost Estimating
    Interest and Equivalence
    More Interest Formula
    Analysis (Present Worth , Annual Cash Flow , Rate of Return , Incremental , Others)
    Uncertainty in the Future
    Depreciation
    Income Taxes
    Replacement
    Inflation and Price Change
    Selection of a Minimum Attractive Rate of Reurn
    Economic Analysis in the Public Sector 18 Chapters
    Rationing Capital Among Competing Projects
    Accounting and Engineering Economy

    2
    MAKING ECONOMIC
    DECISIONS
    Chapter 1

    3
    A Sea of Problems
    Simple Problems
    Intermediate Problems
    Complex Problems

    4
    Role of Engineering Economics Analysis

    5
    Decision-Making Process

    6
    Example 1-1
    Example for 9
    Steps

    7
    Example 1-2

    x = Portion from 3.00


    1-x = Portion from 4.4
    x(0.25)+(1-x)(0.4)=.31

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