ENGINEERING ECONOMICS

Lecture 7b
1
 INCREMENTAL ANALYSIS

An incremental analysis is a decision-

making technique used in the business to
determine the true cost difference between
the alternatives.

It is also called the relevant cost approach,

marginal analysis or differential analysis.

2
 INCREMENTAL ANALYSIS

Which machine should be chosen at MARR=10%

3
INCREMENTAL ANALYSIS

4
INCREMENTAL ANALYSIS

5
INCREMENTAL ANALYSIS

6
INCREMENTAL ANALYSIS

7
BENEFIT-COST RATIO ANALYSIS

8
BENEFIT-COST RATIO ANALYSIS

9
BENEFIT-COST RATIO ANALYSIS

10
BENEFIT-COST RATIO ANALYSIS

11
BENEFIT-COST RATIO ANALYSIS

12
BENEFIT-COST RATIO ANALYSIS

13
BENEFIT-COST RATIO ANALYSIS

14