Six Ways to Perform Economic Evaluation of Projects

In Six Ways to Perform Economic Evaluation of Projects, you'll learn ...

• Understand the 6 fundamental methods of cost analysis
• Payback Method
• Return on Investment (ROI)
• Total life cycle cost (present value method)

Overview

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Credit: 3 CPD

Length: 26 pages

This course addresses cost analysis related to planning and executing projects. While engineers find it necessary to learn the basic accounting and business principles to communicate with accountants, few accountants are willing to learn the engineering details. The basic cost evaluation techniques presented in the course will help engineers to “think like MBAs and act like engineers”.

Installed costs and capital offsets are important economic parameters for evaluation of a proposed investment. The concept of money having a time value is fundamental to understanding any economic or financial analysis. This 3 -hour course provides basic fundamentals of cost evaluation that can be applied to new, retrofit, expansion and modification projects.

The course is intended primarily for managers, engineers, architects, scientists, auditors, campaigners, academics, equipment manufacturers and designers.

Learning Objectives

Upon completion of this course, participants will be able to:

• Explain the six fundamental methods of cost analysis.
• Calculate the payback method.
• Compute Return on Investment (ROI).
• Determine total life cycle cost using the present value method.
• Estimate the savings-to-investment ratio (benefit/cost ration method).
• Derive net present Value (NPV).
• Quantify the internal rate of return (IRR).
• Define commonly used financial terminology and concepts.
• Judge and select the appropriate project alternative.

Certificate of Completion

You will be able to immediately print a certificate of completion after passing a multiple-choice quiz consisting of 15 questions. CPD credits are not awarded until the course is completed and quiz is passed.