Engineering economy is a way to compare alternatives on an economic basis. Engineering economic analysis
is able to answer professional and personal financial questions. This type of economic study involves
computing a specific economic measure of worth for estimated cash flows over a specific period of time. The
concept of equivalence helps in understanding how different sums of money at different times are equal in
economic terms.
Analyze and discuss an example of when you would use engineering economic analysis (it can be a personal
example or you can research one). For example: If you wish to evaluate the economics of purchasing a new
home.
Sample Solution
