The engineering economics of energy use and capital investment

Janis P. Terpenny, Lawrence L. Ambs, John R. Dixon, Julia L. Sullivan, William G. Sullivan

Research output: Contribution to journalConference article

2 Scopus citations

Abstract

The importance of engineering economic analysis for energy related problems of energy use and capital investment decisions is discussed. The basic principles of economic analysis necessary to understand and evaluate energy-related alternatives are also discussed. The concepts of time value of money, present worth, effect of escalating energy costs, levelized cash flows, project life and interest rates are also discussed. Methods used to rationally compare alternatives simple payback period, discounted payback period, internal rate of return and annualized costs are also discussed.

Original languageEnglish (US)
Pages (from-to)5519-5540
Number of pages22
JournalASEE Annual Conference Proceedings
StatePublished - Dec 1 2003
Event2003 ASEE Annual Conference and Exposition: Staying in Tune with Engineering Education - Nashville, TN, United States
Duration: Jun 22 2003Jun 25 2003

All Science Journal Classification (ASJC) codes

  • Engineering(all)

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  • Cite this

    Terpenny, J. P., Ambs, L. L., Dixon, J. R., Sullivan, J. L., & Sullivan, W. G. (2003). The engineering economics of energy use and capital investment. ASEE Annual Conference Proceedings, 5519-5540.