Decision Making Using Engineering Economic Tools: A Real Case Study
Sharfuddin Ahmed Khan*
Industrial Engineering & Management Department, University of Sharjah, Sharjah, 27272, UAE
- *Corresponding Asuthor:
- Sharfuddin Ahmed Khan
Industrial Engineering & Management Department
University of Sharjah, Sharjah, 27272, UAE
E-mail: [email protected]
Received February 02, 2014; Accepted March 26, 2014; Published April 01, 2014
Citation: Khan SA (2014) Decision Making Using Engineering Economic Tools: A Real Case Study. Ind Eng Manage 3:126. doi:10.4172/2169-0316.1000126
Copyright: © 2014 Khan SA, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
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.