Business, 01.02.2021 21:10 kpgmfb

Developing the cash flow for each alternative in a study is a pivotal, and usually the most difficult, step in the engineering economic analysis procedure. An integrated approach for developing cash flows includes three major components: a. A work breakdown structure (WBS) definition of the project.
b. A cost and revenue structure that identifies all the cost and revenue elements involved in the study
c. Estimating techniques (models).

Required:
Discuss the concept of equivalence - if two cash flows (or a series of cash flows) are equivalent for a stated interest rate, and under what circumstances you would be willing to trade one for the other.

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Developing the cash flow for each alternative in a study is a pivotal, and usually the most difficul...

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