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HW7_Profitability Measures (PW, FW, AW)_EngEconomics
- Other • 2 pages • 2023
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The three most commonly used profitability measures are present worth (PW), future worth (FW), and annual worth (AW). Each measure provides a different perspective on the profitability of an investment, and engineers can use them in combination to make informed decisions about the use of resources. 
 
Present worth (PW) is the value of all future cash flows of an investment at the present time. Engineers use the present worth factor to calculate the present worth of an investment, taking into ac...
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HW10_Break-even analysis
- Other • 2 pages • 2023
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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.
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HW5_Deferred Annuities and More Complicated Equivalence Calculations_EE
- Other • 2 pages • 2023
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A deferred annuity is an annuity that does not begin making payments until a specified date in the future. In engineering economy, deferred annuities are often used to evaluate investments in which cash inflows or outflows are expected to occur at a future date. Engineers use present worth, future worth, annual worth, and nominal rate factors to calculate the value of deferred annuities and compare them to other investment options. 
 
In more complicated equivalence calculations, engineers may u...
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HW2_Engineering Economic Analysis_EE
- Other • 1 pages • 2023
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Engineering economic analysis is a branch of engineering that deals with the evaluation of engineering projects and investment options from a financial perspective. It involves the application of mathematical and economic principles to assess the feasibility, profitability, and risk of engineering projects.