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.
01Payback & Time Value of Money
- ▶Simple Payback: Uses and LimitsWhen simple payback works, when it misleads, and why time value matters.10 min
- ▶Time Value of Money & DiscountingMoney today is worth more than money tomorrow: discount rates and present value.11 min
- ▶NPV and IRR: Rigorous Project EvaluationNet present value and internal rate of return — what they mean and when to use each.10 min
- ▶Payback & Time Value CheckQuiz on payback, NPV, IRR, and discount rates.5 min
02Life-Cycle Costing & Total Cost of Ownership
- ▶Total Cost of OwnershipCapital cost is just the start: operating cost, maintenance, replacement, and residual value.10 min
- ▶Life-Cycle Cost ExamplesLED vs halogen, variable-speed vs fixed pump, condensing vs conventional boiler.11 min
- ▶Life-Cycle Costing CheckQuiz on total cost of ownership, operating life, and residual value.5 min
03Comparing & Prioritising Projects
- ▶Portfolio Approach: Not All Projects Are EqualRisk, certainty, co-benefits, and strategic fit — beyond just financial metrics.10 min
- ▶Financing Options & Impact on DecisionCash purchase vs loan vs lease vs performance contract — how to compare.10 min
- ▶Economic Analysis CheckQuiz on project prioritisation, portfolio approach, and financing.5 min