Transcription of Engineering Economics - MIT OpenCourseWare
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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? 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 Mat
caf (1 + i)N P 1/caf … ≡ Present Worth Factor 0 123 n-1 n Common notation: P = F(P/F, i%, N) 3.080 Econ & Enviro Issues In Materials Selection Massachusetts Institute of Technology Department of Materials Science & Engineering Randolph Kirchain Engineering Economic Analysis: Slide 17 Page 8
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