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12: Engineering Economics

  • Page ID
    143028
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    • 12.1: Is Economics Important?
      This page contrasts personal financial choices with engineering financial decisions, introducing engineering economics as the framework used to balance cost, safety, and technical performance when evaluating real-world solutions.
    • 12.2: Trade-offs
      This page uses a car purchase example to illustrate how financing, interest, and lost opportunity costs affect major spending decisions in both personal finance and engineering projects.
    • 12.3: The Time Value of Money
      This page explains the Time Value of Money, demonstrating how simple and compound interest work and comparing how different compounding frequencies impact total financial growth over time.
    • 12.4: Break Even Point
      This page defines the Break Even Point (BEP) in engineering economics and provides a mathematical model and step-by-step example to calculate when product sales fully recover initial investment costs.
    • 12.5: Return on Investment
      This page defines Return on Investment (ROI) in engineering economics, provides formulas and a worked example for calculating annual ROI, outlines industry sector benchmarks, and explains how ROI guides project evaluation.
    • 12.6: Summary
      This page lists core engineering economics concepts, summarizing financial decision-making frameworks, the Time Value of Money, interest compounding dynamics, Break-Even Point analysis, and Return on Investment metrics.
    • 12.7: End-of-Chapter Assignments
      This page contains engineering economics problems involving time value of money, break even points, and return on investments.


    12: Engineering Economics is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.

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