PT1 Engineering Economics

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Across
  1. 9. / includes support functions, utilities, management, legal, taxes, and the like, are more difficult to associate with a specific product or process.
  2. 10. / A combination of the time value of money and interest rate that makes different sums of money at different times have equal economic value
  3. 12. / Capital (money) that is lost and cannot be recovered
  4. 14. / Expected trade-in, market, or scrap value at the end of the estimated life or the study period
  5. 15. / from an expected, desirable, or predicted value that may be detrimental to the product, process, or system.
  6. 16. / The interest rate incurred to obtain capital investment funds. COC is usually a weighted average that involves the cost of debt capital (loans, bonds, and mortgages) and equity capital (stocks and retained earnings).
  7. 17. / For a single project, the value of a parameter that makes two elements equal, e.g., sales necessary to equate revenues and costs.
  8. 18. / have added worth to a product or service from the perspective of a consumer, owner, or investor who is willing to pay more for an enhanced value
Down
  1. 1. / of time before recovery of the initial capital investment is expected.
  2. 2. / A forgone opportunity caused by the inability to pursue a project.
  3. 3. / For a specified MARR, determine a measure of worth for net cash flow series over the life or study period
  4. 4. / also knows as (MARR) A reasonable rate of return established for the evaluation of an economic alternative
  5. 5. / It is a fact that money makes money. This concept explains the change in the amount of money over time for both owned and borrowed funds.
  6. 6. / are cash inflows and carry a positive (+) sign; expenses are outflows and carry a negative (−) sign.
  7. 7. / are primarily human labor, machines, and materials associated with a product, process, system, or service.
  8. 8. / CR is the equivalent annual amount an asset or system must earn to recover the initial investment plus a stated rate of return
  9. 11. / Expressed as a percentage per time (% per year), is an increase in the amount of money required to purchase the same amount of goods or services over time
  10. 13. / The flow of money into and out of a company, project, or activity.