Introductions Introduction to Engineering Economy Engineering Economy Collection of mathematical techniques that simplify economic comparisons when making moderate decisions. Capital Investment Decisions Capital Investment decision making. Usually 3 or more years to recover investment.
Monetary values assist in determining best alternatives.
Comparing project with other projects. Requires careful, organized analysis. Economic aspects are a significant component of problem. Nature of Problems Simple Problems These are defined as decisions that have all important information readily available and it is easy to understand the information. This level of decision is defined as not having all important information readily available and the most important issue is probably money.