Engineering Economics (Econ343)

Engineering economic analysis is a branch of engineering that deals with the evaluation of engineering projects and investment options from a financial perspective. It involves the application of mathematical and economic principles to assess the feasibility, profitability, and risk of engineering projects.

Uniform gradients are cash flows in which the payment or receipt is the same amount for each period. For example, a uniform gradient might be a series of annual payments of $10,000 over the next five years. Engineers use uniform gradient calculations to evaluate investments and financial decisions with constant cash flows. They can use the present worth factor to calculate the value of a uniform gradient, taking into account the time value of money and the interest rate. Geometric gradients, ...

Equivalence calculations using the four factors - present worth (P), future worth (F), annual worth (A), and nominal rate (N) - are commonly used to compare and evaluate alternative investment options. Present worth (P) is the value today of a series of future cash flows, calculated by discounting them using a given interest rate. Future worth (F) is the value at a future time of a series of present cash flows, calculated by compounding them using a given interest rate. Annual worth (A) is th...

IRR (Internal Rate of Return) and Payback Period are two common methods used to evaluate the financial viability of a project. IRR is a financial metric used to determine the rate at which the net present value (NPV) of a project equals zero. It represents the discount rate at which the present value of the expected cash inflows equals the present value of the expected cash outflows. A project is considered financially viable if its IRR is greater than the required rate of return. In other wo...

Multiple alternatives analysis is a decision-making tool used to compare and select the best alternative among several options. Multiple alternatives analysis involves evaluating different alternatives based on their costs, benefits, and risks.

Break-even analysis is a tool used in engineering economy to determine the point at which total revenue equals total costs, resulting in neither a profit nor a loss. The break-even point is the level of production or sales at which the total revenue generated by a product or service equals the total cost of producing it.

Sensitivity analysis is an important tool in engineering economy that is used to determine how changes in input variables affect the output of an economic analysis. It involves varying one or more of the input variables in a model to determine the effect on the output.

Provide questions for homework solutions in another files from chapter to 8 chapter 12

Provide questions for homework solutions in another files from chapter 2 to chapter 7