Engineers involved in construction and evaluation of a project should have a basic understanding of engineering economics. For most of the large projects, such as construction of a power plant, money is borrowed from investors or banks. A costbenefit analysis, rate of return, pay out period, etc. must be performed before venturing into a project. Among several other factors, the project director must be familiar with the cash flow, interest on the borrowed money, and timely completion of the project. Familiarity with interest rates, depreciation rates, and salvage values of equipment are equally important in understanding the economic viability of a project. All these topics are discussed in this chapter.
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(2009). Engineering Economics. In: Ghosh, T.K., Prelas, M.A. (eds) Energy Resources and Systems. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-2383-4_2
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