Transcription of Engineering Economics - MIT OpenCourseWare
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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?
Engineering Economic Analysis: Slide 6 Engineering Economy • Objective – Evaluation – How to compare the economic value of alternative design options? • Basis – Cash Flow Analysis – One is indifferent between investments with equivalent cash flows • Equivalence occurs when one is indifferent between two sets of cash flows • Key ...
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