ABSTRACT
The need for an in-depth understanding of economic analysis is twofold. In our flat, global, and complex world, engineers work on multidisciplined projects that encompass “cradle to grave” dimensions, including finance, design, construction, operation, maintenance, and retirement. To compete in regional and international markets, all industries face and must respond to increased competition because of lower cost operations from nontraditional sources. Economic analysis is important from the traditional perspectives of LCC, analysis of alternatives, business operations, etc. Economic analysis will become the key business driver for engineers. Many parameters can influence an economic analysis (Figure 2.1). In all these cases, an in-depth understanding of the economic factors affecting a project allows us to remain competitive in today’s ever-changing markets.
