Abstract
Understanding and maintaining the proper relationship between engineering design and economic costs should be an integral part of any engineering design project, and the engineer must have some understanding of economic concepts to make proper design decisions. This chapter discusses that relationship and introduces economic concepts that will enable the engineer to identify the least-cost option among alternatives. Centered on various net present value methodologies, the chapter is written for those who have little or no formal background in finance, yet the material advances quickly enough to be of value to those already familiar with utility economics. Most readers will find it beneficial to work through the chapter’s many examples and problems, as the concepts are best understood through application.
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© 1996 Chapman & Hall
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Wynne, J.M. (1996). Engineering Economics. In: Drbal, L.F., Boston, P.G., Westra, K.L. (eds) Power Plant Engineering. Springer, Boston, MA. https://doi.org/10.1007/978-1-4613-0427-2_2
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DOI: https://doi.org/10.1007/978-1-4613-0427-2_2
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-8047-4
Online ISBN: 978-1-4613-0427-2
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