Engineering Economics in Excel

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Build the four standard interest factors as formulas, compare them with a printed interest table, and convert a machine price into an equivalent annual amount with PMT.
• Discount the cash-flow tables of two air compressors with P/F factors, add up their present worths and pick the cheaper one.
• Compare a 4-year and a 7-year pump with the equivalent uniform annual cost (EUAC) and confirm the result over a common 28-year study period.
• Find the rate of return of two milling machines with IRR, then the ROR of the extra investment, and choose with the incremental rule.
• Evaluate a county flood levee: present worth of benefits, disbenefits and costs, then the conventional and the modified B/C ratio.
• Depreciate a welding robot straight-line and with a US MACRS 5-year table, then turn the tax depreciation into income tax and after-tax cash flow.
• Decide whether Ridgeline should replace its old hydraulic press: EUAC of the defender at today's market value against the EUAC of a new challenger.
• Find how many operating hours per year make an electric and a diesel pump cost the same, build a sensitivity table and chart both cost lines.