Engineering Economic Analysis

Catalog description

Engineering and managerial decision making. The theory of interest and its uses. Equivalent annual costs, present worth, internal rates of return, and benefit/cost ratios. Accounting depreciation and its tax effects. Economic lot size and similar cost minimization models. Sensitivity analysis. Cost dichotomies: fixed vs. variable, and incremental vs. sunk, use of accounting data. Replacement theory and economic life. Engineering examples.