27107484-Engineering-Economy-Chapter-1x

27107484-Engineering-Economy-Chapter-1x - CHAPTER I...

Info iconThis preview shows pages 1–14. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

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

Unformatted text preview: CHAPTER I FOUNDATIONS OF ENGINEERING ECONOMY ENGINEERING ECONOMY, Sixth Edition by Blank and Tarquin M c Gra w Hill 02/19/10 Authored by Don Smith, TX A&M University 2 1. Foundations: Overview 1. Questions 2. Decision Making 3. Study Approach 4. Interest Rate 5. Equivalence 6. Simple and Compound Interest 02/19/10 Authored by Don Smith, TX A&M University 3 1. Foundations: Overview 7. Symbols 8. Spreadsheet Functions 9. Minimum Attractive Rate of Return 10. Cash Flows 11. Doubling Time 12. Spreadsheets Section 1 Why Engineering Economy is Important to Engineers (and other professionals) 02/19/10 Authored by Don Smith, TX A&M University 5 Section 1.1 Importance Engineers Design Engineers must be concerned with the economic aspects of designs and projects they recommend and perform Analysis Design Synthesis 02/19/10 Authored by Don Smith, TX A&M University 6 Section 1.1 Questions Engineers must work within the realm of economics and justification of engineering projects Work with limited funds (capital) Capital is not unlimited rationed Capital does not belong to the firm Belongs to the Owners of the firm Capital is not freeit has a cost 02/19/10 Authored by Don Smith, TX A&M University 7 Section 1.1 Definition ENGINEERING ECONOMY IS INVOLVED WITH THE FORMULATION, ESTIMATION, AND EVALUATION OF ECONOMIC OUTCOMES WHEN ALTERNATIVES TO ACCOMPLISHED A DEFINED PURPOSE ARE AVAILABLE. 02/19/10 Authored by Don Smith, TX A&M University 8 Section 1.1 Definition ENGINEERING ECONOMY IS INVOLVED WITH THE APPLICATION OF DEFINED MATHEMATICAL RELATIONSHIPS THAT AID IN THE COMPARISON OF ECONOMIC ALTERNATIVES 02/19/10 Authored by Don Smith, TX A&M University 9 Section 1.1 Questions Knowledge of Engineering Economy will have a significant impact on you, personally. Make proper economic comparisons In your profession Private sector Public sector In your personal life 02/19/10 Authored by Don Smith, TX A&M University 10 Section 1.2 Role of Engineering Economy in Decision Making Remember: People make decisions not tools Engineering Economy is a set of tools that aid in decision making but will not make the decision for you Engineering economy is based mainly on estimates of future events must deal with the future and risk and uncertainty 02/19/10 Authored by Don Smith, TX A&M University 11 Section 1.2 Role of Engineering Economy The parameters within an engineering economy problem can and will vary over time Parameters that can vary will dictate a numerical outcome apply and understand . . Sensitivity Analysis 02/19/10 Authored by Don Smith, TX A&M University 12 Section 1.2 Role of Engineering Economy Sensitivity Analysis plays a major role in the assessment of most, if not all, engineering economy problems The use of spreadsheets is now common and students need to master this valuable tool as an analysis aid 02/19/10 Authored by Don Smith, TX A&M University...
View Full Document

This note was uploaded on 03/07/2012 for the course ISEN 303 taught by Professor Yates during the Spring '08 term at Texas A&M.

Page1 / 132

27107484-Engineering-Economy-Chapter-1x - CHAPTER I...

This preview shows document pages 1 - 14. Sign up to view the full document.

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