Engineering Economics Overview

Prices are determined by the balance between supply and demand.

Market equilibrium occurs when supply and demand meet, ensuring efficient resource allocation.

The Law of Demand states that higher prices lead to lower quantity demanded.

<p>The Law of Supply indicates that higher prices result in a higher quantity supplied.</p> Signup and view all the answers

<p>Principle 1: A nearby Naira is worth more than a distant Naira. Principle 3: Marginal revenue must exceed marginal cost.</p> Signup and view all the answers

<p>The steps include recognizing the decision problem, defining goals, collecting information, identifying alternatives, selecting criteria, and choosing the best alternative.</p> Signup and view all the answers

<p>Additional risk is not taken without the expected additional return.</p> Signup and view all the answers

<p>Service or Quality Improvement and Cost Reduction.</p> Signup and view all the answers

<p>Due to its earning potentials.</p> Signup and view all the answers

<p>Balance sheet, income statement, statement of changes in financial position, and auditors' report.</p> Signup and view all the answers

<p>It summarizes the financial position of the corporation, listing its assets and liabilities.</p> Signup and view all the answers

<p>Interest paid is incurred when borrowing money, while interest earned is received from savings or investments.</p> Signup and view all the answers

<p>Interest = amount owed now - principal.</p> Signup and view all the answers

<p>N700.</p> Signup and view all the answers

<p>Interest rate (%) = (Interest / Principal) × 100.</p> Signup and view all the answers

<p>It provides essential insights into the financial condition and performance of organizations.</p> Signup and view all the answers

<p>To evaluate the monetary consequences of products, projects, and processes while balancing initial costs with future operational expenses.</p> Signup and view all the answers

<p>Project goals and objectives, and risk assessment.</p> Signup and view all the answers

<p>Scarcity refers to the limited resources available to fulfill unlimited wants, necessitating trade-offs in resource use.</p> Signup and view all the answers

<p>ROI measures the profitability of an investment by comparing the amount gained or lost relative to the amount invested.</p> Signup and view all the answers

<p>Cost-benefit analysis helps evaluate the economic viability of environmental projects by comparing the expected benefits to their associated costs.</p> Signup and view all the answers

<p>Supply and demand dictate the market availability of products and services, influencing pricing and project feasibility.</p> Signup and view all the answers

<p>Life-cycle costing involves assessing the total cost of ownership of an asset over its lifespan, ensuring informed decision-making in equipment selection.</p> Signup and view all the answers

<p>Value engineering focuses on maximizing project value while minimizing costs, while process improvement aims to enhance efficiency and reduce waste.</p> Signup and view all the answers

<p>The interest for simple interest is calculated only on the initial deposit, not on any accrued interest.</p> Signup and view all the answers

<p>$10,700</p> Signup and view all the answers

<p>Compound interest includes interest earned on previously accrued interest as well as the principal, while simple interest does not.</p> Signup and view all the answers

<p>P is the present value, N is the number of interest periods, and i is the interest rate per period.</p> Signup and view all the answers

<p>Using simple interest, the future value would be $10,210, while using compound interest it would be approximately $12,249.</p> Signup and view all the answers