Advanced Engineering Economic Analysis Calculations Template

The Engineering Economics Calculation Templates workbook is an Excel-based companion resource designed to help students perform common engineering-economy analyses accurately and consistently. It contains three interactive worksheets—NPV/IRR Template, EUAC Comparison, and Loan Amortization—each using editable input cells and built-in formulas so that users can test their own project scenarios without rebuilding calculations from scratch. The workbook is formatted as a practical learning tool: users enter assumptions such as interest rate, project life, cash flows, first cost, operating costs, salvage value, or loan details, while the spreadsheet calculates the relevant economic measures automatically. The NPV/IRR Template sheet is intended for evaluating a single project or investment over a period of up to ten years. Users enter an annual interest rate or minimum attractive rate of return (MARR), then input a time-zero investment and annual cash flows for years 1 through 10. The worksheet automatically calculates each year’s discount factor, converts the cash flow to present worth, tracks cumulative undiscounted cash flow, and totals the discounted values to determine net present value (NPV). It also uses Excel’s IRR function to calculate the internal rate of return. A decision cell provides a simple recommendation: projects with a nonnegative NPV at the selected MARR are identified as economically justified, while projects with a negative NPV are identified as not justified under the entered assumptions. This section is especially useful for practicing discounted-cash-flow analysis, comparing investment alternatives, and checking manual homework calculations. The EUAC Comparison sheet supports comparison of two mutually exclusive alternatives that provide the same basic service, such as competing machines, equipment options, facilities, or process designs. For each alternative, the user enters the MARR, useful life in years, initial or first cost, annual operating cost, and expected salvage value. The spreadsheet then calculates the capital-recovery factor, the sinking-fund factor, and the equivalent uniform annual cost (EUAC) for each option. Because EUAC expresses each alternative as an equivalent annual cost, it is useful even when alternatives have different initial costs, operating expenses, salvage values, or service lives. The sheet concludes with an automatic decision statement identifying which alternative has the lower EUAC. It is intended for equal-service cost comparisons and reinforces the principle that the lower annual equivalent cost is generally preferred when both options satisfy the same performance requirement. The Loan Amortization sheet provides a full annual repayment schedule for a fixed-payment loan. Users enter the original loan amount, annual interest rate, and number of annual payments. The template calculates the equal annual payment using the capital-recovery relationship, then creates a payment-by-payment table showing the beginning balance, total payment, interest portion, principal portion, and ending balance. Although the example inputs are set to a $50,000 loan at 8% with five annual payments, all values can be replaced with a new scenario. The schedule also extends beyond the entered repayment period, with payment amounts automatically changing to zero after the chosen number of payments, allowing the user to observe the payoff progression. This worksheet is helpful for understanding how fixed loan payments are divided between interest and principal over time. Overall, the workbook is a standalone educational resource for practicing foundational engineering-economics skills: discounted cash-flow analysis, project selection using NPV and IRR, annual-cost comparison using EUAC, and loan repayment modeling. It is structured for independent use and can support classroom study, exam preparation, or review of real-world capital-investment decisions.