Economic Justification

Abstract

The methods utilized for industrial economic analysis are numerous, and range from very simple to very complex systems. It is generally the responsibility of the manufacturing engineer or applications engineer to develop basic investment cost and cost savings data. Generally, the engineer will also perform a simple payback analysis for projects being considered. In come cases, a complex payback analysis or return on investment analysis may be performed. For projects with high cost, the basic data may be further assessed by a cost engineering or accounting department using more complex calculations such as life cycle cost analysis.

Keywords

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