18 Questions
What factors, other than economic aspects, play a significant role in the final recommendation of a decision?
All of the above
Which step in the decision-making process involves the selection of the alternative that best serves the long-term interests of the organization's owners?
Step 4: Selection of decision criterion
What does the analysis of the economic aspects of an engineering problem mainly rely on?
Cash-flow estimates for feasible alternatives
Why is obtaining accurate forecasts of cash flows and other factors considered a substantial effort?
To account for inflationary pressures and regulatory mandates
Which principle is considered essential in an engineering economy study due to future uncertainties?
'Consideration of future uncertainties'
What is the main focus when selecting an alternative in engineering economy according to the text?
Long-term interests of the organization's owners
What stimulates the recognition of a problem according to the text?
Internal and external organizational needs
In Step 2, what does 'feasible' mean in the context of developing alternatives?
Meeting or exceeding established requirements
Which step uses Principles 2, 3, and 4 of the Engineering Economy Principles according to the text?
Step 3: Development of Prospective Outcomes
How are alternatives selected for detailed analysis in Step 2?
Meeting or exceeding established requirements
What is the purpose of comparing alternatives in engineering economic analysis?
To identify the differences between alternatives
What defines the boundary or extent of a problem formulation according to the text?
Systems perspective
What may change the original formulation of a problem during evaluation?
Information from the evaluation phase
Which step is the preferred alternative a result of?
It is not a result of any specific step
What does the quality of the results obtained and the recommended course of action depend on?
The total effort put into the analysis
What does Principle 7 relate to in engineering practice?
Monitoring project performance during its operational phase
Why is post-implementation evaluation important according to the text?
To learn how to do better analyses in the future
Why is the final step often not done consistently or well in engineering practice?
Inadequate attention given to follow-up and feedback
Learn about the selection of preferred alternatives in engineering economic analysis. Understand how to compare alternatives based on differences quantified in monetary terms. Explore the steps involved in technical-economic modeling and analysis.
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