Engineering Economic Analysis

Engineering Economic Analysis is a process used to evaluate the financial benefits and costs of different engineering projects or solutions. It helps decision-makers determine which option offers the best value by comparing factors like initial expenses, ongoing costs, and potential savings over time. This method involves applying financial principles, such as calculating present and future values, to ensure resources are allocated efficiently. Ultimately, it enables engineers and managers to make informed choices that balance technical performance with economic viability, ensuring investments lead to the most beneficial outcomes.