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Engineering Economics Overview
Posted inEngineering Economics

Engineering Economics Overview

Posted by admin September 15, 2021
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Treatment of Uncertainty
Posted inEngineering Economics

Treatment of Uncertainty

Posted by admin September 15, 2021
A final issue concerns the treatment of uncertainty. One method for explicitly introducing risk considerations…
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Selection of Best Alternative
Posted inEngineering Economics

Selection of Best Alternative

Posted by admin September 15, 2021
There are two considerations in determining benefit-cost criteria. The first pertains to project acceptability, while…
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Measurement of Benefits and Costs
Posted inEngineering Economics

Measurement of Benefits and Costs

Posted by admin September 15, 2021
Direct losses are measured or estimated statistically or by a priori judgment. Actuarial fire-loss data…
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Identification of Relevant Benefits and Costs
Posted inEngineering Economics

Identification of Relevant Benefits and Costs

Posted by admin September 15, 2021
The identification of benefits and costs depends on the particular project under consideration. Thus, in…
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Benefit-Cost Analysis
Posted inEngineering Economics

Benefit-Cost Analysis

Posted by admin September 15, 2021
Benefit-cost analysis, also referred to as cost-benefit analysis, is a method of comparison in which…
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Rate of Return
Posted inEngineering Economics

Rate of Return

Posted by admin September 15, 2021
Rate of return is, by definition, the interest rate at which the present worth of…
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Annual Cost
Posted inEngineering Economics

Annual Cost

Posted by admin September 15, 2021
To compare alternatives by annual cost, all cash flows are changed to a series of…
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Present Worth
Posted inEngineering Economics

Present Worth

Posted by admin September 15, 2021
In a present worth comparison of alternatives, the costs associated with each alternative investment are all converted…
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Inflation and the discount rate
Posted inEngineering Economics

Inflation and the discount rate

Posted by admin September 15, 2021
Provision for inflationmay be made in two ways: (1) estimate all future costs and benefits…
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