Engineering Economics (Econ343)

Multiple alternatives analysis is a decision-making tool used to compare and select the best alternative among several options. Multiple alternatives analysis involves evaluating different alternatives based on their costs, benefits, and risks.

Break-even analysis is a tool used in engineering economy to determine the point at which total revenue equals total costs, resulting in neither a profit nor a loss. The break-even point is the level of production or sales at which the total revenue generated by a product or service equals the total cost of producing it.

Sensitivity analysis is an important tool in engineering economy that is used to determine how changes in input variables affect the output of an economic analysis. It involves varying one or more of the input variables in a model to determine the effect on the output.

It discusses the different methods of depreciation (such as straight-line, declining balance, and sum-of-the-years' digits), how to calculate depreciation expenses, and the impact of different depreciation methods on income taxes. The chapter also covers the basics of income taxes, including the different types of taxes and tax rates, tax deductions and credits, and how to calculate income tax expenses.