Engineering Economics Blog

Friday, July 12, 2013

Single-Amount Factors (F / P and P / F)

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  The  most fundamental factor in engineering economy  is the one that determines the amount of money   F  accumulated after   n  years (or...
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Factors: How Time and Interest Affect Money

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  The cash fl ow is fundamental to every economic study. Cash fl ows occur in many confi  gurations and amounts - isolated single values, seri...
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Thursday, July 11, 2013

EXAMPLE 1.17 - Introduction to Spreadsheet Use

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A Japan-based architectural fi rm has asked a United States–based software engineering group to infuse GPS sensing capability via satellite ...
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Introduction to Spreadsheet Use

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The functions on a computer spreadsheet can greatly reduce the amount of hand work for equivalency computations involving   compound intere...
Wednesday, July 10, 2013

Minimum Attractive Rate of Return

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  For any investment to be profi  table, the investor (corporate or individual) expects to receive more money than the amount of capital inv...

EXAMPLE 1.16 - Simple and Compound Interest

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Table 1–1 details four different loan repayment plans described below. Each plan repays a $5000 loan in 5 years at 8% per year compound int...
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Tuesday, July 9, 2013

EXAMPLE 1.15 - Simple and Compound Interest

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Assume an engineering company borrows $100,000 at 10% per year compound interest and will pay the principal and all the interest after 3 ye...
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