An engineering economist must explicitly state, “From the perspective of the asset owner…” before analyzing.
A sunk cost is money already spent that cannot be recovered. Rational engineering decisions look only at future costs and benefits. Letting sunk costs influence you leads to the “concorde fallacy” (throwing good money after bad). 7 principles of engineering economics with examples
The final choice is only as good as the options you consider. An engineering economist must explicitly state, “From the
This is where comes into play. It is the discipline that bridges the gap between technical feasibility and financial viability. Without it, an engineer might design the strongest bridge in the world that no city can afford, or the most efficient battery that never turns a profit. An engineering economist must explicitly state