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Practical framing includes personal and corporate finance examples and exercises for selecting financially attractive investments.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/economics-engineering-economics/657237/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/economics-engineering-economics/657237.png","ImageObject",300,407,{"name":42,"@type":43},"awa","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-29","2026-10-26",true,{"@type":52,"interactionType":53,"userInteractionCount":22},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"Why are basic economics concepts important in engineering decisions?","Question",{"text":62,"@type":63},"Because economics plays an important role in every engineering decision, and students must be able to apply basic concepts to evaluate options.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"What are cash flows in engineering economics?",{"text":67,"@type":63},"Cash flows are transfers of money that cross the system boundary, typically a project.",{"name":69,"@type":60,"acceptedAnswer":70},"How is a cash flow diagram used to analyze investments over time?",{"text":71,"@type":63},"Cash flows are aggregated by time period to form net cash flow, plotted as positive or negative flows across numbered periods, and analyzed using end-of-period cumulative cash flows.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},657237,1792976214,{"code":4,"msg":81,"data":82},"success",[83,87,91,94,99,104,109,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":92,"slug":93},70,"exam",{"id":95,"doc_module":4,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},5,"Comic",60,"comic",{"id":100,"doc_module":4,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},6,"Technology",50,"technology",{"id":105,"doc_module":4,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},7,"Healthcare",40,"healthcare",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},8,"Research & Report",30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":95,"slug":129},19,"General","general",{"code":4,"msg":81,"data":131},{"doc_id":78,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":33,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":22,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":139,"language":140,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":12,"update_tm":79,"read_time":39},3985747858093,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","Class notes for ChE 4N04 Engineering Economics section  \nEthics and Law  \nSafety and Environment  \nEngineering science Process and Product Design  \n..  \nEconomics  \nRisk and uncertainty  \nChemistry and Biology Project Management  \n..  \nWe all must be able to apply basic concepts of economics because economics plays an important role in every engineering decision.  \nCopyright © 2013 by T. Marlin  \nCourse principles have many  \napplications  \nEngineering Economics  \n-Evaluate profitability of alternative investments  \nPersonal Finance  \n-When to buy that new car!  \n-Determine proper level of borrowing and saving  \n-Calculate income taxes  \nCorporate Finance  \n-Provide adequate cash reserves  \n-Determine minimum rate of return  \nI’ll use this as soon as I graduate!  \nYour first task at your new job  \nSupervisor to you: We want to increase our production rate by 35%, but the distillation tower is at its maximum capacity (liquid and vapour flows) .  \nWhat is the best choice?  \nEvaluate the following feasible alternatives and determine the most financially attractive.  \nAfter some creative brainstorming …  \n1. Build a parallel distillation tower 2. Replace trays with packing  \n3. Increase the number of trays  \n4. Contract the extra production to another company  \n5. Change operating conditions  \nRoadmap for engineering economics topic  \n• Four major topics  \n-Time value of money  \n-Quantitative measures of profitability Able to evaluate  \n-Selecting from among alternatives potential projects and select the  \n-Cost estimating best  \n• Lecture exercises and thought questions  \n• Class workshop  \n• Midterm (individual)  \n• Application in the SDL Project  \nFour major topics in engineering  \neconomics  \n1. Time value of money  \n-How do we compare $ at different times?  \n2. Quantitative measures of profitability  \n-How do we determine the “profit” or “financial attractiveness” from an investment?  \n3. Systematic comparison of alternatives  \n-How do we ensure that we select the “best”investment?  \n4. Estimation of costs  \n-How do we determine the costs before we buy?  \nTime-value Money  \nTime value of money  \nLet’s use our modeling skills to determine a “money balance”  \nRevenues or incomes flow  \ninto the system, e.g.  \n• Product sales  \n• Equipment sales  \n• Licensing fees  \nExpenditures or costs flow out of the system, e.g.,  \n• Feed costs  \n• Fuel and electricity  \n• Employee salaries  \nImportant definition: Cash flows are transfers of money that cross the system boundary. The system is typically a “project”.  \n6  \nTime-value Money  \nTime value of money  \nCash flows occur over time.  \nWe sum the revenues and expenditures within each time period to give the net cash flow at a time. We plot these in a cash flow diagram.  \nCash flow diagram  \nPositive cash flow  \nNegative cash flow  \ntime   \nPeriods are numbered from 0 to the end of analysis.  \nPeriod can be any time  \nlength; often one year for engineering projects Cash flows in units of money ($)  \n7  \nTime-value Money  \nTime value of money  \nCash flow diagram and analysis  \nMany cash flows occur within a time period  \nAssumption: The net sum of all cash flows during the period occurs at the end of the period.  \n8  \nTime-value Money  \nTime value of money  \nWe plot the end-of-period, or the cumulative cash flows  \nCash flow diagram  \n(at each period)  \nCumulative cash flow diagram  \n(just the cumulative sum of the above plot)  \nWe’ll use both, with the top plot used more often.  \n9  \nTime-value Money  \nTime value of money  \nDraw a cash flow diagram for life from age 10 to age 40 with periods of 1 year","cbCaiqErrOUCMxBT","https://ap.wps.com/l/cbCaiqErrOUCMxBT","pdf",6089308,119,"English","# Roadmap for engineering economics topic\n## Four major topics\n## Time value of money\n## Cash flow diagram and analysis","[{\"question\":\"Why are basic economics concepts important in engineering decisions?\",\"answer\":\"Because economics plays an important role in every engineering decision, and students must be able to apply basic concepts to evaluate options.\"},{\"question\":\"What are cash flows in engineering economics?\",\"answer\":\"Cash flows are transfers of money that cross the system boundary, typically a project.\"},{\"question\":\"How is a cash flow diagram used to analyze investments over time?\",\"answer\":\"Cash flows are aggregated by time period to form net cash flow, plotted as positive or negative flows across numbered periods, and analyzed using end-of-period cumulative cash flows.\"}]","Economics  - Engineering Economics | PDF"]