Conference Session

Engineering Economy Division Technical Session 1

Collection

2020 ASEE Virtual Annual Conference Content Access

Authors

Brian Aufderheide, Hampton University; Otsebele E. Nare, Hampton University

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy, Engineering Management, Industrial Engineering, Systems Engineering

understand that only their imagination limits them to using this flexible toolto develop scenarios to test the worthiness of the design project. Stress over and over again thepurpose is not to make a Financial Operational Model to get a value for the Internal Rate of Return,Net Present Value, and Payback time in years. It is to develop scenarios to test the project’sviability, to see potential weaknesses that must be studied further before moving ahead with theproject, and to plan for success. And that is not all. A good Financial Operational Model is a livingdocument. Once the design is built and put in practice, it still has use. It can be modified todetermine upgrades to potential equipment, changes to feed stocks, issues with labor wages