Energy Academy
Level 2: System Deep Dives/Economic Analysis of Engineering Projects
Level 211 lessons · 117 min

Economic Analysis of Engineering Projects

Beyond payback: time value of money, NPV, IRR, life-cycle costing and how to compare competing projects fairly.

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01Payback & Time Value of Money

  1. 01Simple Payback: Uses and LimitsWhen simple payback works, when it misleads, and why time value matters.10 min
  2. 02Time Value of Money & DiscountingMoney today is worth more than money tomorrow: discount rates and present value.11 min
  3. 03NPV and IRR: Rigorous Project EvaluationNet present value and internal rate of return — what they mean and when to use each.10 min
  4. 04Payback & Time Value CheckQuiz on payback, NPV, IRR, and discount rates.5 min

02Life-Cycle Costing & Total Cost of Ownership

  1. 01Total Cost of OwnershipCapital cost is just the start: operating cost, maintenance, replacement, and residual value.10 min
  2. 02Life-Cycle Cost ExamplesLED vs halogen, variable-speed vs fixed pump, condensing vs conventional boiler.11 min
  3. 03Life-Cycle Costing CheckQuiz on total cost of ownership, operating life, and residual value.5 min

03Comparing & Prioritising Projects

  1. 01Portfolio Approach: Not All Projects Are EqualRisk, certainty, co-benefits, and strategic fit — beyond just financial metrics.10 min
  2. 02Financing Options & Impact on DecisionCash purchase vs loan vs lease vs performance contract — how to compare.10 min
  3. 03Economic Analysis CheckQuiz on project prioritisation, portfolio approach, and financing.5 min

04Capstone Project

  1. 01Capstone: Economic Analysis DiagnosticsHands-on: appraise eight projects — payback screening, time value, NPV, IRR, NPV-vs-IRR, whole-life cost, financing and portfolio risk — then calculate, verify and make the call.30 min