Transcript
7/21/2019 2013 11 Engineering Economics
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The EngineeringEconomic Equations
Every Safety Professional
Should Know
Presented By: Jarred O’Dell, ASP
Safety DirectorSyracuse Utilities
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House Keeping
Please Silence Cell Phones
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House Keeping
Please Silence Cell Phones
Sign-in Sheet
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House Keeping
Please Silence Cell Phones
Sign-in Sheet
Sleeping during the
presentation
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Why Engineering Economics
For those of you pursuing your CSP
! "# $uestions on the ASP %&a'
! "# $uestions on the CSP %&a'
For everyone else
%(er )uy a car or a house*+ho has a credit card*
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Engineering Economics
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Engineering Economics
ou do not
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Engineering Economics
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'uestion (
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Engineering Economics '(
A /ealthy relati(e died and left you herestate0 ou can choose to either accept45,666,666 today or /ait and recei(e
4"6,666,666 in fi(e years0 Assu'e theannual interest rate o(er this period is"670 ou decide to8
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Engineering Economics '(
ou decide to:
A9 +ait the # years
B9 B9 1a3e the 'oney and run
C9 Do nothing, its pro)a)ly the sa'e people
that )rought you the .igerian ottery
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Engineering Economics
Page (
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Engineering Economics
;uture
Present
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Engineering Economics
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Engineering Economics
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Engineering Economics
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Engineering Economics
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Engineering Economics '(
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Engineering Economics '(
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'uestion )
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Engineering Economics ')
ou decided to go )ac3 to school and earedyour asters Degree in 'athe'atics0a(ing heard this,
your super(isorthro/s thisscenario at you:
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Engineering Economics ')
1he chief financial officer of +idget 2nc0e&pects a "67 annual return onin(est'ents for all capital proects0 +hat is
the 'a&i'u' cost that /ill )e appro(edfro' a proect that is e&pected to sa(e4,666 per year o(er "6 years* Assu'ethe proect /ill )e fully depreciated in the
"6 years0
'uestion )
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Engineering Economics ')
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Engineering Economics
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Engineering Economics '*
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'uestion *
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Engineering Economics '*
ou recently o)tained 5E Blac3 Belt status0Congratulations Understanda)ly, you are(ery an&ious to test out your ne/ s3ills0
Soon you face this pro)le':
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Engineering Economics '*
1he financial policy of Ac'e re$uires thatcapital in(est'ents 'ust ha(e an annualreturn of "F70 An engineering solution to
a safety pro)le' /ill cost 4F#6,666 for theinitial installation, and it /ill cost 4"F,666annually to 'aintain for "# years0 +hat isthe re$uired annual sa(ings fro' this
proect in order for it to )e appro(ed*
'uestion *
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Engineering Economics '*
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Engineering Economics
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Engineering Economics '*
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'uestion #
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Engineering Economics '#
a(ing recently )een conferred as a Doctorin Safety and %ngineering Science,your are no/ in
a position to posesthis scenario to youre'ployer:
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Engineering Economics '#
our co'pany decided to hire an %S<5E,e&ecuti(e0 2f a )alloon pay'ent of4"6,666,666 is due in "6 years, /hat
a'ount /ould 'anage'ent ha(e todeposit 'onthly into a sa(ings account>paying interest of 57 per year9 toaccu'ulate ade$uate funds to pay the
note*
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Engineering Economics '#
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Engineering Economics
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Engineering Economics
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Engineering Economics
;uture
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A'ount of periodic receipt<pay'ent
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Annual 2nterest= e&pressed in deci'al
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Engineering Economics
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'uestion +
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Engineering Economics '#
One of your facelesspa/ns is ha(ing
trou)le figuring outthe follo/ingscenario0 ehu')ly<fearfully
as3s for your help:
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Engineering Economics '+
Calculate the 'onetary (alue after tenyears of a )eha(ior )ased safety progra'that costs 4G6,666 per year at the start0
Assu'e an inflation rate of G0H7
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Engineering Economics '#
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Engineering Economics
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Engineering Economics '+
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