TAILIEUCHUNG - Lecture Engineering economics - Chapter 6: Time value of money application

Upon completion of this chapter you should understand: Approach to solving time value of money applications; uncertainty, risk and decision trees; determining operating costs; calculating annual costs. Inviting you refer. | Chapter 6 -Unit 1 Time Value of Money Application IET 350 Engineering Economics B Learning Objectives - Chapter 6 Upon completion of this chapter you should understand Approach to solving time value of money applications. Uncertainty risk and decision trees. Determining operating costs. Calculating annual costs. 2 Learning Objectives - Unit 1 Upon completion of this unit you should understand Approach to solving time value of money applications. Uncertainty risk and decision trees. Determining operating costs. Calculating annual costs. 1 1 Applications Annual cost calculation is a frequent application for time value of money techniques. Annual cost determination includes Product unit costs. Purchase versus lease comparison. Equipment economic justification. Loan calculations. Additionally annual cost calculations are used for a wide variety of investment decision analysis. 4 1 Solving TVM Relationships Steps for solving time value of money applications 1. Describe situation using cash flow diagram. 2. Summarize known and unknown factors using the diagram. 3. Determine the unknown factors using equivalence and time value of money calculations. 4. Consider the affect of uncertainty and risk using decision trees what-if analysis and sensitivity analysis. 5. Review how the problem will impact other projects and sources of funds. 6. Consider noneconomic effects on the solution. 7. Combine economic and noneconomic factors to make a recommendation or decision. 5 1 Solving TVM Relationships Problem solving forms part of thinking. Considered the most complex of all intellectual functions problem solving has been defined as higher-order cognitive process that requires the modulation and control of more routine or fundamental skills Goldstein Levin 1987 . It occurs if an organism or an artificial intelligence system does not know how to proceed from a given state to a desired goal state. It is part of the larger problem process that includes problem finding and problem .

• Kinh tế học
• Engineering economics
• Lecture Engineering economics
• Time value
• Money application
• Determining operating costs
• Calculating annual costs
• Research on mistakes of economics and engineering students
• Learning the total probability
• Economics and engineering students
• Rhe economics and engineering students
• Lecture Engineering Economics and Costing
• Engineering Economics and Costing
• Bài giảng Kinh tế Kỹ thuật và Định phí
• Law of variable proportion
• Cash flow diagram
• America’s economic
• Financial system
• Total quality management
• Forms of organizations
• Accounting Equation
• Financial statements
• Income statement
• Balance sheet
• Cash outflows
• Noncash outflows
• Inventory accounting
• Payment calculations
• Return on investment
• Time value of money
• Compound interest
• Annual amount
• Gradient functions
• Equal annual amounts
• Present value amounts
• Investment alternatives
• Annual amount method
• Unequal service lives
• Breakeven analysis
• Linear breakeven
• Non‐linear breakeven
• Private label strategy
• Minimum cost analysis
• Economic Order Quantity
• Just‐In‐Time purchasing
• Summary of Doctoral thesis
• Summary of Doctoral thesis in Economics
• Managment accounting
• Accounting of road
• Bridge engineering construction cost
• Civil engineering construction corporation
• Lecture Engineering economy
• Engineering economy
• Bài giảng Kinh tế kỹ thuật
• Cost concepts
• Design economics
• Incremental cost
• Life cycle cost
• Economics role
• Decision making processes
• Engineering economy study
• Manufacturing systems engineering
• Manufacturing technology
• Production management
• Industrial economics
• Fundamentals of manufacturing systems
• Integrated manufacturing
• Technological information flow
• Value systems for manufacturing
• Capital investment for manufacturing
• Automation systems for manufacturing
• Nuclear engineering and technology
• OECD NEA study on the economics
• Market of small reactors
• Small Modular Reactors
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• Centrifugal pumps
• Advantages and components
• Cost economics of both polymer
• Metal centrifugal pumps
• Engineering plastic materials
• Mathematical Methods in Science
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