The module of engineering economics is included in any civil engineering degree of high quality. Whilst it is included in most of the commerce related degrees, this module and what it contains can be used to make several decisions in the commercial context. Amongst the theories of this there is a concept called the benefit/cost analysis. What is this?

Simply put; all the present and future benefits and costs are estimated in terms of money. In doing this, it is essential consider all the relevant criteria. After that, there is a calculation which can be done manually to project everything to the present value so that the time value of money would not affect. If the ratio is bigger than units, then it’s more than good enough; the bigger the number, the better the solution.

But why should do it? Read more to find out.

  • Extra useful for small and middle scale companies

How many times have you been gazing at the buying or the leasing/rent options long enough that someone else took your opportunity? After all, being a small scale or a medium scale business, it would not have been so practical to go with what happens. But with a solution like this, you would get the opportunity for that.

For an instance, let assume that you have two options to either buy or rent office printer melbourne. In an occasion like this, there are some fixed worked out conclusion where you don’t have to decide to for the renting out option in this specific context. But if you need to ensure that whether it is worth it, it may be better to see whether people do that, whatever that you are to do.

  • Can be applied for almost any kind of an occasion

Although we will be talking about the printing equipment context here, this sort of a solution works for any kind of an occasion. Suppose your printing needs are quite repetitive and you need to ensure that if you buy it, you will be able to at least cover the cost. To do this, it is necessary that you have at least a slight idea about how long it would go for. But naturally, if this is for a short-term need, renting out would be better.

  • Extremely accurate

Sometimes, people dislike making decision based on numbers given the skeptical nature of the results. But concepts like these are not only numerical accurate but can be used for derivations too; that’s a sufficient level of accuracy.


 

Tags: