Primary Author: Mark T. Chen, PE CCP FAACE Hon. Life
Audience Focus: Basic
Application Type: Practice
Venue: 2016 AACE International Annual Meeting, Toronto, ON, Canada
Abstract: Engineering decision making usually applies economic analysis to assist in the solution of substantial engineering problems where economic aspects dominate over a considerable period of time. Using the time value of money, discount factors, and the principle of equivalence, the economic costs of a problem can be modeled and evaluated. Those who have previously taken a basic financial management or engineering economic course will find this material a refresher of the concepts and basic tools of financial mathematics. This presentation provides a review of the time value of money to assist in the performance of basic cash flow analysis to support economic and financial analyses that inform investment decisions.
Audience Focus: Basic
Application Type: Practice
Venue: 2016 AACE International Annual Meeting, Toronto, ON, Canada
Abstract: Engineering decision making usually applies economic analysis to assist in the solution of substantial engineering problems where economic aspects dominate over a considerable period of time. Using the time value of money, discount factors, and the principle of equivalence, the economic costs of a problem can be modeled and evaluated. Those who have previously taken a basic financial management or engineering economic course will find this material a refresher of the concepts and basic tools of financial mathematics. This presentation provides a review of the time value of money to assist in the performance of basic cash flow analysis to support economic and financial analyses that inform investment decisions.