Step in

study
Problem Objective
1 description statement

Available data
One or more approaches
2 Alternatives for to meet objective
solution

Expected life
Cash flows and Revenues
3 Costs
other estimates
Taxes
Project financing

Measure of worth
4 PW, ROR, B/C, etc.
criterion

Engineering
5
economic analysis Consider:
• Noneconomic factors
• Sensitivity analysis
Best alternative • Risk analysis
6
selection

Implementation
7
and monitoring

Time
passes

New problem New engineering

1 economy study
description
begins