The document discusses the effects of inflation on engineering economy calculations. It defines inflation and presents two methods for accounting for inflation: 1) converting cash flows to constant value dollars using the real interest rate, and 2) using future dollars and the inflation-adjusted interest rate. The key effects of inflation are a reduction in purchasing power over time as money buys fewer goods/services. The document also discusses how inflation impacts present worth, future worth, and capital recovery calculations.
Comparing alternatives in Engineering Economics and ManagementNzar Braim
Comparing alternatives in Engineering Economics and Management
In the real world, the majority of engineering economic analysis problems are
alternative comparisons. In these problems, two or more mutually exclusive
investments compete for limited funds. A variety of methods exists for selecting
the superior alternative from a group of proposals. Each method has its own merits
and applications
Introduction to Engineering Economy is about engineering economy &The technological and social environments in which we live continue to change at a rapid rate.
In recent decades, advances in science and engineering have transformed our transportation systems, revolutionized the practice of medicine, and miniaturized electronic circuits so that a computer can be placed on a semiconductor chip.
Comparing alternatives in Engineering Economics and ManagementNzar Braim
Comparing alternatives in Engineering Economics and Management
In the real world, the majority of engineering economic analysis problems are
alternative comparisons. In these problems, two or more mutually exclusive
investments compete for limited funds. A variety of methods exists for selecting
the superior alternative from a group of proposals. Each method has its own merits
and applications
Introduction to Engineering Economy is about engineering economy &The technological and social environments in which we live continue to change at a rapid rate.
In recent decades, advances in science and engineering have transformed our transportation systems, revolutionized the practice of medicine, and miniaturized electronic circuits so that a computer can be placed on a semiconductor chip.