Lecture_13.1_Engineering_Economics

Lecture_13.1_Engineering_Economics - AE309 Lecture 13.1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 13.1 Engineering Economics Reference: Lindeburg, Engineering Economic Analysis Notations Engineering Economics - What is it? o Choosing the best design outcome o Outcomes are evaluated in dollars o Good is defined as positive monetary value o May not be the only basis of decision unless all outcomes are anticipated and monetized Goal: o Be able to evaluate economic options taking into consideration the time value of money To meet this goal: o Calculate an effective interest rate o Understand and develop cash flow diagrams o Know the methods for evaluating alternatives o Understand the impact of taxes & depreciation Value of Money o “Value” is not synonymous with “amount” o The value of an amount of money depends on when amount is spent or received. o The difference between the anticipated amount and its current value is called ____________________ o Interest is expressed as ____________________ Time Value of Money o Utilization of money over time has value. o
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Lecture_13.1_Engineering_Economics - AE309 Lecture 13.1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online