Engineering Economics

≈ 32 min

Engineering economics compares alternatives across time using initial cost, operation, maintenance, replacement, residual value and uncertainty.

Core checkpoint: Lowest purchase price is not the same as lowest life-cycle cost.

Which statement best captures the core checkpoint for Engineering Economics?

Lowest purchase price is not the same as lowest life-cycle cost.

Choose a solution before defining the evidence.

Ignore units, limits and boundary cases.

Assume the first result applies in every context.

Enter the highlighted key term for Engineering Economics. Checkpoint clue: Which cost comparison includes operation and replacement?

Which lesson most directly explains the concepts used in this application?

A solar water pump may cost more initially but reduce fuel and transport costs over its service life.

Engineering Economics

The Engineering Design Cycle

Requirements, Constraints and Trade-offs

none of these concepts