PDF4PRO ⚡AMP

Modern search engine that looking for books and documents around the web

Example: stock market

Engineering Economics - MIT OpenCourseWare

Engineering Economic Analysis: Slide 1 Econ & Enviro Issues In Materials Selection Randolph KirchainMassachusetts Institute of Technology Department of Materials Science & Engineering Massachusetts Institute of TechnologyDepartment of Materials Science & EngineeringEngineering Economics : Comparing Financial Characteristics of Design Options Engineering Economic Analysis: Slide 2 Econ & Enviro Issues In Materials Selection Randolph KirchainMassachusetts Institute of Technology Department of Materials Science & Engineering Massachusetts Institute of TechnologyDepartment of Materials Science & EngineeringEngineering Econ Example: Comparing Alternatives BIG DIG $$$$ $$ $$Where Should You Build? Far or Near Figure by MIT OCW. Page 1 Example: Comparing Alternatives Cost Site A Site B Cost to build @ site $250,000 $500,000 Monthly Costs Average Hauling Distance 6 5 miles Hauling Expense $15 $15 /mile Shipments 250 250 /month Total Monthly Cost $22,500 $18,750 Monthly Savings $3,750 Econ & Enviro Issues In Materials Selection Massachusetts Institute of TechnologyMassachusetts Institute of TechnologyDepartment of Materials Science & EngineeringDepartment of Materials Science & EngineeringRandolph Kirchain Engineering Economic Analysis: Slide 3 Example: Comparing Alternatives Simple payback: Site B is preferred after 5 years ($500,000 $250,000) 67months $3,750 / month Co

Determining Equivalence: Issue - Value over time • Money now has a different value than the same amount at a different date – Would you prefer $75 today or $80 in one year? – It depends – Rate of return on investment • Proper name: Discount Rate, i or r – Future benefits / costs are reduced (ie, “discounted”) to compare with present 3.080 Econ & Enviro Issues In Materials …

Loading..

Tags:

  Mit opencourseware, Opencourseware

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Spam in document Broken preview Other abuse

Transcription of Engineering Economics - MIT OpenCourseWare

Related search queries