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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?

Department of Materials Science & Engineering Randolph Kirchain Engineering Economic Analysis: Slide 10 Return on Capital • Why consider return on capital? – For most engineering projects, capital must be tied up for some period of time • Purchase a piece of equipment • Fund a research project – Revenues from the use of capital

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