Industrial Engineering & Management

Decision Making Using Engineering Economic Tools: A Real Case Study

Abstract

Sharfuddin Ahmed Khan

Appropriate financial decisions are important for success of any company. Sometimes, erroneous selection of project or investment ruins the overall company’s financial condition. There are number of financial or engineering economic tools available but the appropriateness of a given project, estimate its value, and justify it from an engineering economics standpoint is the key. It’s known that engineering economics provides the tools and techniques in evaluating alternatives economically and source of many engineering decisions are based on engineering economics. In this paper, we will make economics decision for the location of copper mining plant using traditional engineering economics tools like cash flow, depreciation, and spider diagram and sensitivity analysis by using a real case study.