About Engineering Economics
✴Engineering Economics is a subject of vital importance to Engineers. This subject helps one understand the need for the knowledge of Economics for being an effective manager and decision maker.✴
►The Economics theories are used to take decisions related to uncertain and changing business environment. Economics theories deal with the principles of demand, pricing, cost, production, competition, trade cycles, and national income and so on.✦
☆“Engineering Economics refers to those aspects of economics and its tools of analysis most relevant to the Engineer’s decision making process”.☆
❰❰ The seven-step procedures used to assist the decision making are: ❱❱
1. The recognition, definition and evaluation of the problem.
2. Search for potential as well as feasible alternatives.
3. Incorporating the basic cash flow approach.
4. Decision should serve the long term interest of the organisation.
5. Analysing the economic aspects of the engineering problem.
6. The preferred alternative is based on the total effort.
7. Attention to ensure feedback for improvement of operation.
【 Topics Covered in this App are Listed Below 】
⇢ Engineering Economics: Meaning and Characteristics
⇢ Engineering Economics Overview
⇢ Cash-Flow Concepts
⇢ Cash-Flow Diagrams
⇢ Interest Calculations
⇢ Interest Factors
⇢ Present Worth
⇢ Interest Periods
⇢ Sinking fund factor
⇢ Capital recovery factor
⇢ Series present worth factor
⇢ Other Interest Calculation Concepts
⇢ Comparison of Alternatives
⇢ Discount Rate
⇢ Inflation and the discount rate
⇢ Present Worth
⇢ Annual Cost
⇢ Rate of Return
⇢ Benefit-Cost Analysis
⇢ Identification of Relevant Benefits and Costs
⇢ Measurement of Benefits and Costs
⇢ Selection of Best Alternative
⇢ Treatment of Uncertainty
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