engineering economics

Engineering economics involves evaluating the financial aspects of engineering projects and decisions. It helps determine the most cost-effective option by analyzing costs, benefits, and the timing of cash flows. This includes estimating initial investments, operating costs, and potential savings or revenue over time. By applying principles like present value and return on investment, engineers and managers can make informed choices that optimize resource use and profitability. It’s a systematic approach to ensure engineering solutions are financially viable and aligned with organizational goals.