Abstract
The distinction between profit measures for capital investment and methods of economic analysis for project selection is discussed. Various methods of analysis for the selection of alternatives without budget constraints are examined. The selection of independent projects under budget constraints is also considered. The examination of the assumptions and issues related to the objective of profit maximization should clarify some misunderstandings often found in the literature of engineering economy.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have