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).

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/0858251248
• Authors:
  • Abercrombie, E J
• Conference:
  • Engineering Conference, 1980, Adelaide, Australia
• Publication Date: 1980

Language

• 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

• TRT Terms: Economics; Evaluation; Investments; Methodology
• ATRI Terms: Economics; Evaluation; Investment; Method
• Subject Areas: Economics;

Filing Info

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