Project Management Processes-2

Chapter3.EngineeringEconomicAnalysis1.pptx

Project Management: Processes, Methodologies, and Economics

Third Edition

Chapter 3

Engineering Economic Analysis

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Figure 3-1 Standard Cash Flow Diagram Indicating Points in Time for P, F, A, and G

Figure 3-3 Cash Flow Diagram for Example 3-2 Showing Deferred Uniform and Gradient Series

Figure 3-4 Cash Flow Diagram for Example 3-3

Figure 3-5 Relationship Between N P V and I R R for Example 3-12

Figure 3-6 N P V Plot for More than One Change in Sign

Figure 3-7 Relationship between N P V and I R R for Independent Investment

Figure 3-8 Breakeven Chart Diagram for Example 3-16

Figure 3-9 Breakeven Chart Diagram for Example 3-17

Figure 3-10 Diagram for Utility Assessment

Table 3-1 Assessed Utilities for Project Manager

Figure 3-11 Utility Function Obtained from Data in Table 3-1

Table 3-2 Payoff Matrix for New Product Development Example

Table 3-3 Utility Matrix for New Product Development Example

Figure 3-12 Three General Types of Utility Functions

Figure 3-13 Arrangement of Rotary Combustor

Figure 3-14 Details of Rotary Combustor

Figure 3-15 Preference Curve for Risk-Averse Decision Maker