EMT320: Foundations of Engineering Economy
WEEKLY OVERVIEW: Week 4
Week 4: Present Worth Analysis
Course Objectives:
Perform present worth and annual worth analysis for various scenarios
Weekly Objectives:
Identify mutually exclusive and independent Projects and define a revenue and a cost
alternative
Evaluate a single alternative and select the best of equal-life alternatives using Present Worth
analysis.
Select the best of different life alternatives using Present Worth analysis
Select the best alternative using capitalized costs calculations
Select the best independent projects with and without budget limits
Use a spreadsheet to select an alternative by PW analysis
Assigned Reading:
1. Chapter 4 in your textbook
2. Review the W4 key terms: Mutually Exclusive, Independent Projects, Different Life
Alternatives, Capitalized Cost
3. View W4 Lecture
4. View W4 Video Lectures
Activities
1. Participate in the W4 discussion Present Worth Alternatives
2. Complete the W4 Midterm