Identify which among principle of Engineering Economics it is:

Carefully define the problem! Then the choice (decision) is among alternatives. The alternatives need to be identified and then defined for subsequent analysis.

Identify which among principle of Engineering Economics it is:

Enumerate as many of the prospective outcomes as possible will simplify the analysis of the alternatives.

Identify which among principle of Engineering Economics it is:

Improved decision making results from an adaptive process; to the extent practicable, the initial projected outcomes of the selected alternative should be subsequently compared with actual results achieved.

A SEGMENTED TIME-BASED HORIZONTAL LINE, divided into time units which visually represent income and expenses over some time interval.

PAYMENTS for the RISK the investor takes in permitting another person, or an organization, to use his or her capital.

Whenever the interest charge for any interest period (a year, for example) is based on the REMAINING PRINCIPAL AMOUNT plus any accumulated interest charges up to the beginning of that period.

A = P (1 + r/n)^nt

The total interest earned or charged is LINEARLY PROPORTIONAL to the initial amount of the loan (principal), the interest rate, and the number of interest periods for which the principal is committed.

I = P x I x N or I = P(rincipal) x R(ate) x T(ime)

Whenever the interest charge for any interest period (a year, for example) is based on the REMAINING PRINCIPAL AMOUNT plus any accumulated interest charges up to the beginning of that period.

The duration of the interest period decreases from some finite duration △t to an INFINITELY small duration dt, and the number of interest periods per year becomes INFINITE.

The annual interest rate WITHOUT CONSIDERING THE EFFECT of any compounding.

The annual interest rate TAKING INTO ACCOUNT THE EFFECT OF ANY COMPOUNDING during the year.

occurs ONE INTEREST PERIOD BEFORE the first A (uniform amount)

occurs at the SAME TIME AS THE LAST A, and N periods after P

occurs at the END OF PERIODS 1 THROUGH N, inclusive.

If the cash flow DOES NOT BEGIN UNTIL SOME LATER DATE.

Cash flows are constituted through this sequence when some problems involve receipts or expenses that are projected to INCREASE OR DECREASE BY A UNIFORM AMOUNT each period.

Cash flow is modeled through this sequence when a fixed amount of a commodity that INFLATES IN PRICE AT A CONSTANT RATE EACH YEAR.

Based on the concept of EQUIVALENT WORTH OF ALL CASH FLOWS RELATIVE to some base or beginning point in time called the PRESENT.

Ascertains whether the BENEFITS OF A PROJECT (in terms of the PV/PW of the cash inflows) are GREATER THAN, LESS THAN or EQUAL to the costs of a project (in terms of the PV/PW of the cash outflows).

Based on the EQUIVALENT WORTH OF ALL CASH INFLOWS AND OUTFLOWS at the end of the PLANNING HORIZON (study period) at an interest rate that is generally the MARR.

An EQUAL ANNUAL SERIES OF DOLLAR AMOUNTS, for a stated study period, that is equivalent to the CASH INFLOWS AND OUTFLOWS at an interest rate that is generally the MARR.

LOSS in value of the ASSET.

INTEREST on invested CAPITAL.

What refers to the cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds capital should or will earn?

A uniform series of payment occurring at equal interval of time is called ______ .

Aiydan puts $5000 into a savings account with a 3% interest rate. The interest compounds yearly. How much money will he have in his account after 8 years?

David

invests $10,000 in a savings account that pays 3.5% simple interest. If David

makes no withdrawals or deposits to the account, how much will be in the

account after 7 years.

Carly

deposited $800 in an account that earns 6% compounded annually. Lara deposited

$800 in an account that earns 6% simple interest. How much will each girl have

in their account at the end of 10 years if they make no withdrawals or deposits?

You have received P 10,000 from an investment account in which you started investing five years ago. The initial investment will be _______.

Assuming a discount rate of 8%, P 3,000 received three years from now is worth __________ today.

The Break-even Point of a company is the level of sales income which will equal the sum of its fixed cost.

For a project to be economically justified, the present worth must be greater than or equal to 0 for i=MARR.

Whether you use the Present Worth method, the Annual Worth method, or the future worth method, the conclusion should be the same.

What is the formula for calculating compound interest?

What is the formula for calculating simple interest?