Introduction to Engineering Economy
Engineering Economy Fundamentals
Interest Rate and Rate of Return
Cash Flow Estimation
Ethics
Time Value of Money (TVM)
Economic Equivalent
MARR
Spreadsheet Functions
Simple and Compound Interest
Cash Flow Diagram
End-of-Period Assumption
Net Cash Flow
Perspectives for Cash Flow Estimation
Universal morals and personal morals
the change in the amount of money over time
the relationship between time and money
Universal morals or ethics
Personal morals or ethics
Professional or engineering ethics
Interest
Interest Rate
Interest = amount owed now - principal
Interest Rate (%) = interest accrued per time unit/principal x
Interest Rate of Return
Interest Rate of Return (%) = interest accrued per time unit/original amount x 100%
NCF =
cash inflows cash outflows = R-D
Cash Inflows (R)
Cash Outflows (D)