Measure of worth PW, ROR, B/C, ete. criterion

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What does step number 4 mean? 
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Step in
study
Problem
Objective
1
description
statement
Available data
One or more approaches
to meet objective
Alternatives for
solution
Expected life
Revenues
Cash flows and
3
Costs
other estimates
Тахes
Project financing
Measure of worth
PW, ROR, B/C, etc.
criterion
Engineering
economic analysis
Consider:
• Noneconomic factors
• Sensitivity analysis
• Risk analysis
Best alternative
selection
6.
Implementation
and monitoring
7
Time
passes
New problem
description
New engineering
conomy study
begins
1
Transcribed Image Text:Step in study Problem Objective 1 description statement Available data One or more approaches to meet objective Alternatives for solution Expected life Revenues Cash flows and 3 Costs other estimates Тахes Project financing Measure of worth PW, ROR, B/C, etc. criterion Engineering economic analysis Consider: • Noneconomic factors • Sensitivity analysis • Risk analysis Best alternative selection 6. Implementation and monitoring 7 Time passes New problem description New engineering conomy study begins 1
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