St. Paul University Surigao
St. Paul University System
8400 Surigao City, Philippines
COLLEGE OF ENGINEERING
MODULE 1 INTRODUCTION TO ENGINEERING ECONOMY
Learning Activity #1
OBJECTIVES: (At the end of the activity, you will be able to:)
1. Define engineering economics and describe its role in decision making.
Basic Concepts
1. List the four essential elements involved in decision making in engineering economic analysis.
2. What is meant by ( a ) limited capital funds and ( b ) sensitivity analysis?
3. List three measures of worth that are used in engineering economic analysis.
4. Identify the following factors as either economic (tangible) or noneconomic (intangible): first cost, leadership, taxes,
salvage value, morale, dependability, inflation, profit, acceptance, ethics, interest rate.
ENGINEERING ECONOMY
ENGR. AVG