In engineering economics it is often used present worth analysis to determine best alternative between options. I was wondering how do we know what type of formula to use. Sometimes it is used the formula with P/A, others A/P, as F/A and P/F and So on. How do we know which fraction to use?

In engineering economics it is often used present worth analysis to determine best alternative between options. I was wondering how do we know what type of formula to use. Sometimes it is used the formula with P/A, others A/P, as F/A and P/F and So on. How do we know which fraction to use?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In engineering economics it is often used present
worth analysis to determine best alternative
between options. I was wondering how do we know
what type of formula to use. Sometimes it is used
the formula with P/A, others A/P, as F/A and P/F and
so on. How do we know which fraction to use?

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