Lecture Week (Chapter) 6
When there are many alternatives to choose, we apply the concept of mutually
exclusive to select the best alternative.
Mutually exclusive investment selection is the a
Interest Factors for
870 APPENDIX A Interest Factors for Discrete Compounding
Equal Payment Series
LECTURE WEEK 12
To explore what happens to a projects profitability when the estimated
value of study factors are changed.
Sensitivity is specifically defined to mean the percent change in one
TIME VALUE OF MONEY
Lecture Notes Week 4
Dr Wan Ahmad Wan Omar
Lecture Notes Week 4
4. The Time Value of Money
The notion on time value of money is based on the idea that money
available at the present time is worth more than the same amount in the
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Introduction to Manufacturing
What is manufacturing economics?
Manufacturing economics refers
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evaluation of the economic merits of proposed
DEPRECIATION AND INCOME
PRICE CHANGES AND
LECTURE WEEK 7
DEPRECIATION IS THE DECREASE IN VALUE OF ASSETS OR PHYSICAL
PROPERTIES OVER TIME BECAUSE OF WEAR AND TEAR.
AN ACCOUNTING CONCEPT TO BE DEDUCTED ANNUALLY BE
Chapter 12. Engineering Economy
Chapter 11. Fundamental of Engineering Economics. Chan S, Park
Sources of Uncertainty
1. The first source that is always present is the possible inaccuracy of the
cash-flow estimates used
Evaluating Projects with
BenefitCost Ratio Method
Lecture Week 10
Basic Differences between Private
and Public-owned Projects
maximize profit or
Lecture Notes, Week-3
THE PURPOSES OF
1. To set selling price as in quotation, tender bidding, and contract
2. Profit analysis for products or services.
3. Capital budgeting cash outlay requirement.
COST CONCEPTS AND
Fixed cost not affected by changes in activity level over
feasible range of operation for available capacity, for example,
salaries for workers, overhead, insurance on facilities, license
fee, interest on
Lecture Week 9
Engineering economy studies of replacement situations are performed
using the same basic methods as other economic studies involving
two or more alternatives.
Often the decision is whether to repla