
TSK-000962 · Engineering practice
APOLLO AUTOMATIONJAMES WARREN · ENGINEERING & PROJECT LEADERSHIPCAP-0038 · Engineering practice
Investment Economics and Lifecycle Analysis

Analytical Methods & Quantitative Decision Support · Investment economics and lifecycle analysis

TSK-000962 · Engineering practice
No additional relationship is assigned without a supporting context.
No additional relationship is assigned without a supporting context.
Time-value-of-money analysis, present value, annuities, discounted cash flow, NPV and IRR provide ways to compare capital alternatives on a consistent basis. Lease-versus-buy analysis, risk-adjusted discount rates, scenarios and sensitivity testing show which assumptions drive a decision. These methods connect equipment and operating requirements with capital justification without treating an estimate as a realized result.