Economic analysis of engineering projects

The economic analysis segment of a project evaluation is a specialisation in engineering economics. This paper attempts to close the information gap on this subject which exists between practicing engineers and specialist engineer economists by providing a complete description of the selection criteria, their assumption and limitations. It is shown that when applied correctly the three variants of the discounted cash flow technique - net present value, rate of return and benefit/ cost ratio lead to the same investment decisions. The application of these criteria with the recommended treatment of escalation, uncertainty and unequal life of assets provides a simple, consistent method for the selection of projects with the maximum potential for net economic benefit. The importance of effective presentation of the analysis to the decision maker is emphasised (a).


  • English

Media Info

  • Pagination: 70-4
  • Monograph Title: Engineering Conference 1980, Adelaide, 14-18 April 1980; Engineering in the 80's; conference papers, supplement and plenary sessions papers
  • Serial:
    • Issue Number: 80/2

Subject/Index Terms

Filing Info

  • Accession Number: 01438929
  • Record Type: Publication
  • Source Agency: ARRB
  • ISBN: 0858251248
  • Files: ATRI
  • Created Date: Aug 24 2012 9:55PM