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  • 2013 11 Engineering Economics

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    pganoel
    20 tayangan64 halaman
    This document provides an introduction to engineering economic equations that safety professionals should understand. It begins by explaining why understanding engineering economics is important for professional certification exams and for making personal financial decisions. The presentation then outlines the key engineering economic equations, including the variables for future value, present value, amount, interest rate, and number of years. It provides example questions and works through applying the equations to calculate required values. The summary concludes by stating that the document introduces important engineering economic concepts and equations through example problems.

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    2013 Engineering Economics

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    This document provides an introduction to engineering economic equations that safety professionals should understand. It begins by explaining why understanding engineering economics is important for professional certification exams and for making personal financial decisions. The presentation then outlines the key engineering economic equations, including the variables for future value, present value, amount, interest rate, and number of years. It provides example questions and works through applying the equations to calculate required values. The summary concludes by stating that the document introduces important engineering economic concepts and equations through example problems.

    Hak Cipta:

    © All Rights Reserved
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    20 tayangan64 halaman

    2013 11 Engineering Economics

    Diunggah oleh

    pganoel
    This document provides an introduction to engineering economic equations that safety professionals should understand. It begins by explaining why understanding engineering economics is important for professional certification exams and for making personal financial decisions. The presentation then outlines the key engineering economic equations, including the variables for future value, present value, amount, interest rate, and number of years. It provides example questions and works through applying the equations to calculate required values. The summary concludes by stating that the document introduces important engineering economic concepts and equations through example problems.

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    © All Rights Reserved
    Unduh sebagai PPTX, PDF, TXT atau baca online dari Scribd
    Tandai sebagai konten tidak pantas
    dari 64

    The Engineering

    Economic Equations
    Every Safety Professional
    Should Know
    Presented By:
    Jarred ODell, ASP
    Safety Director
    Syracuse Utilities

    House Keeping
    Please

    Silence Cell Phones

    House Keeping
    Please

    Silence Cell Phones

    Sign-in

    Sheet

    House Keeping
    Please

    Silence Cell Phones

    Sign-in

    Sheet

    Sleeping

    during the

    presentation

    Why Engineering Economics


    For those of you pursuing your CSP:
    7

    15 questions on the ASP Exam

    15 questions on the CSP Exam

    For everyone else:


    Ever

    buy a car or a house?

    Who

    has a credit card?

    Engineering Economics

    0-4

    Engineering Economics

    You do not
    need an
    app for
    that!!!

    Engineering Economics

    Uff Da!
    Uff da is an expression of
    Norwegian origin adopted by
    Scandinavian-Americans.
    This exclamation is an
    announcement that, that
    person is going into a state
    of sensory overload.

    Uff Da!
    If you find yourself going into
    sensory overload and need
    to ask a question say:

    Uff Da!

    Uff
    Da!

    Question: 1

    Engineering Economics: Q1
    A wealthy relative died and left you her
    estate. You can choose to either accept
    $6,000,000 today or wait and receive
    $10,000,000 in five years. Assume the
    annual interest rate over this period is
    10%. You decide to

    Engineering Economics: Q1
    You decide to:
    A)

    Wait the 5 years

    B)

    B) Take the money and run

    C)

    Do nothing, its probably the same people


    that brought you the Nigerian Lottery

    Engineering Economics

    Page 1

    Engineering Economics
    F = Future
    P = Present
    A = Amount of periodic receipt/payment
    n = Number of years*
    i = Annual Interest* expressed in decimal
    form (e.g. 10% = .10)
    Page 1

    Engineering Economics

    Page 1

    Engineering Economics

    Engineering Economics

    Engineering Economics

    Engineering Economics: Q1

    = 10,000,000

    = 6,000,000

    = N/A

    = 10% or 0.10

    = 5 years

    Page 2

    Engineering Economics: Q1

    = 6,000,000 (1+ 0.10)5

    = 10,000,000(1+0.10)-5

    Page 2

    Question: 2

    Engineering Economics: Q2
    You decided to go back to school and eared
    your Masters Degree in mathematics.
    Having heard this,
    your supervisor
    throws this
    scenario at you:

    Engineering Economics: Q2
    The chief financial officer of Widget Inc.
    expects a 10% annual return on
    investments for all capital projects. What is
    the maximum cost that will be approved
    from a project that is expected to save
    $8,000 per year over 10 years? Assume
    the project will be fully depreciated in the
    10 years.
    Question 2

    Uff
    Da!

    Engineering Economics: Q2
    F

    = N/A

    = ???

    = $8,000

    = 10% or 0.10

    = 10 years

    Page 3

    Engineering Economics

    Engineering Economics: Q3

    Page 3

    Question: 3

    Engineering Economics: Q3
    You recently obtained 6 Black Belt status.
    Congratulations! Understandably, you are
    very anxious to test out your new skills.
    Soon you face this problem:

    Engineering Economics: Q3
    The financial policy of Acme requires that
    capital investments must have an annual
    return of 12%. An engineering solution to
    a safety problem will cost $250,000 for the
    initial installation, and it will cost $12,000
    annually to maintain for 15 years. What is
    the required annual savings from this
    project in order for it to be approved?
    Question 3

    Engineering Economics: Q3
    F

    = N/A

    = $250,000

    = ???

    = 12% or 0.12

    = 10 years

    Page 4

    Engineering Economics

    Engineering Economics: Q3

    A=

    Page 4

    Question: 4

    Engineering Economics: Q4
    Having recently been conferred as a Doctor
    in Safety and Engineering Science,
    your are now in
    a position to poses
    this scenario to your
    employer:

    Engineering Economics: Q4
    Your company decided to hire an EHS/6,
    executive. If a balloon payment of
    $10,000,000 is due in 10 years, what
    amount would management have to
    deposit monthly into a savings account
    (paying interest of 6% per year) to
    accumulate adequate funds to pay the
    note?
    Question 4

    Engineering Economics: Q4
    F

    = $10,000,000

    = N/A

    = ???

    = 6% or 0.06

    = 10 years

    Page 5

    Engineering Economics

    Engineering Economics

    A=

    Engineering Economics
    F = Future
    P = Present
    A = Amount of periodic receipt/payment
    n = Number of years*
    i = Annual Interest* expressed in decimal
    form (e.g. 10% = .10)
    Page 1

    Engineering Economics

    A=

    Question: 5

    Engineering Economics: Q4
    One of your faceless
    pawns is having
    trouble figuring out
    the following
    scenario. He
    humbly/fearfully
    asks for your help:

    Engineering Economics: Q5
    Calculate the monetary value after ten
    years of a behavior based safety program
    that costs $40,000 per year at the start.
    Assume an inflation rate of 4.3%

    Question 5

    Engineering Economics: Q4
    F

    = ???

    = N/A

    = $40,000

    = 4.3% or 0.043

    = 10 years

    Page 5

    Engineering Economics

    Engineering Economics: Q5

    F=

    Uff
    Da!

    Engineering Economics

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