Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FE > Engineering Economics > Flashcards

Engineering Economics Flashcards

1
Q

A

A

Annuity or annual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

BV

A

Book value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

EUAC

A

Equivalent uniform annualized cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

EV

A

Expected value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

F

A

Future value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

f

A

Inflation rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

G

A

Uniform gradient amount per interest period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

i

A

Interest rate per period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

M

A

Compound period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

MACRS

A

Modified accelerated cost recovery system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

MARR

A

Modified attractive rate of return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

n

A

Number of compounding periods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

P

A

Present value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

ROI

A

Return on investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Economics

A

A social science concerned chiefly with description and analysis of the production, distribution and consumption of goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Finance

A

The science or study of the management of funds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Depreciate

A

To deduct from taxable income a portion of the original cost of (a business asset) over several years as the value of the asset decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Inflation

A

A continuing rise in the general price level usually attributed to an increase in in the volume of money and credit relative to available goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Fixed cost

A

A cost that remains constant and does not vary with short term changes in production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Variable cost

A

Cost that fluctuates directly with changes in output

21
Q

Direct labor

A

Labor (as machine operators) applied directly to a product in the manufacturing process so that the cost is computable, identifiable, and chargeable directly to the specific product

22
Q

Indirect labor

A

Labor (as clerks, repair men, maintenance men) applied indirectly to a product in the manufacturing process so that the cost is not computable in, identifiable with, or chargeable directly to the specific product

23
Q

Sustainability

A

Of, relating to, or being a method of harvesting or using a resource so the resource is not depleted or permanently damaged

24
Q

Cash flow diagrams

A

A method to visualize cash flows over time

25
Q

P
Given F, i, n

A

P=F(1+i)^-n

Note that I should be a decimal

26
Q

Non annual compounding

A

i’ = (1+(r/m))^m-1

27
Q

Inflation

A

d=i+f+(ixf)

28
Q

Uniform gradient

A

Another type of cash flow that may be tested - the uniform gradient amount per interest period (G)

29
Q

P
Given G, i, and n

A

P’ = G(FIND IN FERH SUPPLIED FACTOR TABLE)

30
Q

Net present value

A
31
Q

Comparing alternative costs
Same i

A

Lower payback is better

P’ = -P + (P/F, i, n)
OR
P’ = -P + (P/A, i, n)

32
Q

Capitalized costs

A

The present value of an infinite series of payments, given an interest rate

33
Q

CONCEPT
Would an infinite series of payments produce an infinite value?

A

NO
and infinite series of payments will have a FINITE value

34
Q

Capitalized cost Eq

A

P = A/i

35
Q

Equivalent Uniform Annualized Cost
EUAC

A

When alternatives do the same job but have different life expectancies, they may be compared based on the cost per year of each alternative

36
Q

EUAC

A

EUAC = P(A/P, i, n) + (per year cost)

37
Q

Cost benefit analysis

A

B - C >= 0

38
Q

Fixed cost

A

Fixed costs do not vary with production, such as plant and equipment (overhead) costs

39
Q

Incremental cost

A

Or marginal costs - vary with production such as material and labor

40
Q

Sunk cost

A

BAD
Throwing good money after bad
Feeling committed to something because money was already put in

41
Q

Minimum attractive rate or return (MARR)

A

Should represent the minimum ROI known

42
Q

Break even analysis

A

Exactly as it sounds
Set Eq(1) = Eq(2) and solve for variable

43
Q

Probabilistic analysis

A

Given uncertain outcomes but given the probability of possible costs/revenues

44
Q

EV

A

EV = (C1)(P1) + (C2)(P2) + …

45
Q

Probabilistic analysis ex

A
  • remember to find EV THEN apply
    P’ = P(P/A, i, n)
46
Q

Straight line depreciation
D_j (j = year of depreciation)

A

D_j = (C-S_n)/n

47
Q

Book value

A

BV = P - ΣD_j

48
Q

Book value
Definition

A

Represents the portion of assets initial cost that has not yet been used to offset income

FE (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions