ME 481
Mechanical Engineering Design Projects
Engineering Economics
Purpose
This web site is intended to assist ME 481 students as they conduct the
economic/cost analysis for their design project. It focuses on the issues
of the time value of money and should provide the students with sufficient
background to take the various costs associated with the project and calculate
a present value or annual value for different design alternatives that can
be used in the decision making process.
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Background
Money and money flows are dynamic. That is, they are affected by time.
The concept of time value of money allows for the engineer to take into
account that project costs occur at different points in time and in different
ways. In this way the engineer can consider the cost implications of
different design alternatives.
Learn More: Time Value of Money Basics
Using Economic Analysis: Asking What If Questions
Check Your Knowledge: Quiz
on Time Value of Money Basics
Time Value of Money Functions: Summary
Table of Functions
Learn by Seeing: Worked Examples
Learn by Doing: Engineering Economics Problem
Generator
Read Some More: References on
Engineering Economics
For questions about this web site or more help on your economic analysis
please contact Professor Craig W. Somerton at somerton@egr.msu.edu.
Last updated 2/22/06