Project Management: Processes,
Methodologies, and Economics
Third Edition
Chapter 3
Engineering Economic
Analysis
Copyright © 2017, 2005, 1994 Pearson Education, Inc. All Rights Reserved
Copyright © 2017, 2005, 1994 Pearson Education, Inc. All Rights Reserved
Figure 3-1 Standard Cash Flow Diagram
Indicating Points in Time for P, F, A, and G
Copyright © 2017, 2005, 1994 Pearson Education, Inc. All Rights Reserved
Figure 3-3 Cash Flow Diagram for Example 3-2
Showing Deferred Uniform and Gradient Series
Copyright © 2017, 2005, 1994 Pearson Education, Inc. All Rights Reserved
Figure 3-4 Cash Flow Diagram for
Example 3-3
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Figure 3-5 Relationship Between N P V and
I R R for Example 3-12
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Figure 3-6 N P V Plot for More than One
Change in Sign
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Figure 3-7 Relationship between N P V and I
R R for Independent Investment
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Figure 3-8 Breakeven Chart Diagram for
Example 3-16
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Figure 3-9 Breakeven Chart Diagram for
Example 3-17
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Figure 3-10 Diagram for Utility Assessment
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Table 3-1 Assessed Utilities for Project
Manager
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Figure 3-11 Utility Function Obtained from
Data in Table 3-1
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Table 3-2 Payoff Matrix for New Product
Development Example
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Table 3-3 Utility Matrix for New Product
Development Example
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Figure 3-12 Three General Types of Utility
Functions
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Figure 3-13 Arrangement of Rotary
Combustor
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Figure 3-14 Details of Rotary Combustor
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Figure 3-15 Preference Curve for Risk-
Averse Decision Maker
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Copyright
Project Management: Processes, Methodologies, and Economics
Slide 2
Slide 3
Figure 3-4 Cash Flow Diagram for Example 3-3
Slide 5
Figure 3-6 N P V Plot for More than One Change in Sign
Slide 7
Figure 3-8 Breakeven Chart Diagram for Example 3-16
Figure 3-9 Breakeven Chart Diagram for Example 3-17
Figure 3-10 Diagram for Utility Assessment
Table 3-1 Assessed Utilities for Project Manager
Figure 3-11 Utility Function Obtained from Data in Table 3-1
Table 3-2 Payoff Matrix for New Product Development Example
Table 3-3 Utility Matrix for New Product Development Example
Figure 3-12 Three General Types of Utility Functions
Figure 3-13 Arrangement of Rotary Combustor
Figure 3-14 Details of Rotary Combustor
Figure 3-15 Preference Curve for Risk-Averse Decision Maker
Copyright
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