Engineering Economics Simulations
A collection of interactive 3D visualizations and simulations to help you master concepts in engineering economics.
Introduction to Engineering Economics - Theory & Concepts
Fundamental concepts, terminology, and the economic environment in engineering.
Cost Behavior & Break-Even Analysis
Costs that remain constant regardless of production volume (e.g., rent, insurance).
Costs that vary directly with production volume (e.g., direct materials, labor).
The revenue generated per unit sold.
Analysis Summary
Cost & Revenue vs. Quantity
Annuities and Gradients - Theory & Concepts
Analysis of uniform series (annuities), deferred annuities, perpetuities, and arithmetic/geometric gradients.
Gradient Cash Flow Visualizer
Constant amount change per year
Analysis
Present Worth Analysis - Theory & Concepts
Evaluating alternatives using the Present Worth method, Least Common Multiple (LCM), and Capitalized Cost.
Present Worth Analysis Simulator
Total Present Worth (PW)
Cumulative Present Worth over Time
Future and Annual Worth Analysis - Theory & Concepts - A W F W Visualizer
Comparing alternatives using Future Worth, Annual Worth methods, and Capital Recovery.
Equivalence Visualizer
Total PW
$2,614
Total AW
$690
Total FW
$4,210
Rate of Return Analysis - Theory & Concepts - I R R Visualizer
Calculating Internal Rate of Return (IRR), External Rate of Return (ERR), and Incremental Analysis.
IRR Visualizer
Cash Flows
Inflation and Purchasing Power - Theory & Concepts
Understanding the effects of inflation, real vs actual dollars, and the Fisher Equation in engineering economic analysis.
Purchasing Power Erosion Simulator
Results
Depreciation - Theory & Concepts
Methods of depreciation including Straight Line, Declining Balance, SYD, MACRS, and Depletion.
Depreciation Methods Comparison
Initial cost of the asset including installation.
Estimated value at the end of useful life.
Formula & Details
Straight Line depreciates uniformly.
Book Value & Depreciation Schedule
Depreciation - Theory & Concepts - Depreciation Calculator
Methods of depreciation including Straight Line, Declining Balance, SYD, MACRS, and Depletion.
Equipment Depreciation Comparison
Straight Line: Constant depreciation amount each year.
Sum of Years Digits: Accelerated depreciation (higher in early years).
Double Declining Balance: Most aggressive early depreciation, often used for tax benefits.
Replacement Analysis - Theory & Concepts
Determining when an existing asset should be replaced by calculating Economic Service Life (ESL) and analyzing Defender vs Challenger.
Economic Service Life (ESL) Visualizer
Benefit-Cost Ratio and Payback Period - Theory & Concepts
Public sector project analysis using B/C ratio and Payback Period methods.
Payback Period Analyzer
Cash Flows
Break-Even and Sensitivity Analysis - Theory & Concepts - Eng Mgmt Break Even
Decision making under uncertainty using Break-Even (linear and non-linear) and Sensitivity analysis.
Break-Even Analysis Tool
Rent, salaries, insurance, etc.
Materials, labor per unit, etc.
Selling price of the product.
Break-Even Point
After-Tax Economic Analysis - Theory & Concepts - After Tax
Performing economic evaluations considering the impact of corporate taxes, effective tax rates, and After-Tax Cash Flow (ATCF).
After-Tax Cash Flow Visualizer
Tax Shield Analysis
Capital Budgeting and Rationing - Theory & Concepts - Capital Rationing
Selecting a portfolio of independent projects under a strict capital constraint.