FirstLecture_W12

FirstLecture_W12 - labor, power & maintenance cost...

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MSci 261   Engineering Economics:  Financial Management for Engineers Instructor: David Fuller Winter 2012
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Course Organization  Marking Scheme February 2 tutorial Quiz  6% 3 Written Assignments  9% Feb. 17 Midterm Exam 35% Final 50% Midterm Exam: Fri. Feb. 17, 8:30-10:30 a.m.  Final Exam:  time to be announced Lecture Style:   Students read the text Prof. & TA present examples in class & tutorial; examples and Prof PowerPoint slides posted on ACE, but NOT ALL SOLUTIONS “Keep up; don’t catch up” READ FOR THIS WEEK:  Chapter 2
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Example 1.1:  Choose a Production Line Design   (to operate for 5 years) Automated Line More Manual Line
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Unformatted text preview: labor, power & maintenance cost $300,000/year What would you do with this information, to advise your boss ? Example 1-2: Choose a building design for a village lot. It will be rented out for 20 years. One-storey building costs $250,000 now, to build it costs $4000/year for maintenance, property taxes rental receipts of $26,000/year Two-storey building costs $400,000 now, to build it costs $6000/year for maintenance, property taxes rental receipts of $40,000/year Is either choice profitable ? Which one is better ? General Flow of Engineering Economic Analyses 2. Identify the Alternatives 3. Estimate Cash Flows for Each Alternative 4. Calculate Measures for Evaluation of Each Alternative 5. Use the Measures to Help Choose the Best Alternative The course is mostly about steps 4 and 5 1. Characterize the problem...
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This note was uploaded on 04/01/2012 for the course MSCI 261 taught by Professor Bonkoo during the Winter '09 term at Waterloo.

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FirstLecture_W12 - labor, power & maintenance cost...

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