Construction Management - II / Basics of Engineering Economics Performance:Slide501.doc Engineering Economics Principles § During our examinations we assume a consolidated economy. ( Free of extremities, such as war, hyperinflation, corruption, etc., and fundamentally operated by pure market mechanisms and by stabil legal and regulations’ systems ) § Our examinations are aiming at economic comparisions of functionally equivalent technical and/or financial options. Figures resulted by any analysis of any option can not be evaluated as themselves but as values to be measured against others. § Conclusions of our examinations are at most supporting decision makers at their work when elaborating their market policy and/or strategy, but are …show more content…
Zoltán András Vattai Construction Management - II / Basics of Engineering Economics Performance:Slide506.doc Further Terms in Relation with „Time-Value of Money” Effective Rate of Interest: To satisfy arising needs for shorter capital recovery cycles, and for lessening loss in interest in case of capital withdrawal before the end of a nominal period, banks offered a special way of interest calculation … ( t = compoundings in a nominal period; t = 4/12/365; in = „nominal interest” ) ie = ( 1 + in t t ) –1 ⇒ Euler : „e” Daily Access Rate of Interest: ( id ) Regarding the „limited manner” of Effective Rate of Interest, and for to substitute the daily compounded (t=365) interest calculations … ( d = number of passed days within a nominal period (typically a year); number of days within a fiscal year 365 (360) ) d id = in ⋅ 365 BUTE DCTM / Engineering Programs in English / 2000- Dr. Zoltán András Vattai Construction Management - II / Basics of Engineering Economics Performance:Slide507.doc Further Terms in Relation with „Time-Value of Money” Substituting Mean Interest: ( im ) An indicatrix characterizing a loan affair in case of rate of interest changing in time … ( k = running index of compoundings ) n im = n Π ( 1 + ik ) – 1 k=1 Inflation: ( f ) Specific loss in purchasing power of a currency within a period. ( There can be numerous reasons of it, not all of them negative phenomenon behind ) Net/Real Rate of Interest: ( ir ) Rate of
This experiment, which was used to explore the Theory of Evolution created by Charles Darwin. The use of natural selection was apparent in the artificial modification of an organism's traits which aided in this investigation. Through this experiment the Wisconsin Fast Plant was used. It is a fast-growing organism developed to improve the resistance to disease in cruciferous plants. This plant aids scientist in the exploration of environmental effects on population due to the speed to which is matures and reproduces. Artificial selection was stimulated by the selection against plants with few hairs(trichomes). Trichomes create a wider variation which means it is polygenic. The plants that had only a few trichomes were
592 Week 1 DQ 1 WBS Construction PROJ 592 Week 1 DQ 2 Project Cost Estimates and Assumptions PROJ 592 Week 2 DQ 1 Cost Components PROJ 592 Week 2 DQ 2 Estimating Processes PROJ 592 Week 3 DQ 1 Project Schedules PROJ 592 Week 3 DQ 2 Sensitivity Analysis PROJ 592 Week 4 DQ 1 Resource Allocation and Leveling PROJ 592 Week 4 DQ 2 Advanced Schedule Techniques PROJ 592 Week 5 DQ 1 Earned Value Calculation PROJ 592 Week 5 DQ 2 Project Monitoring and Control & EV PROJ 592 Week 6 DQ 1 Forecasting Project Completion Cost PROJ 592 Week 6 DQ 2 Project Control PROJ 592
EEC calculated the amount of time involved the anticipation of its cost ($3 million). The timeline in recovering their cost of investment ($2 million) initially for the foundation of this investment any profit made in the future of this investment will be justified as a profit for the company. If EEC can anticipate a fast return on its investment it is a profitable wise decision in making the investment financial, it is considered to be an easier way of formulating investments financially. On the basis of one year all cash flows is added together equal to the sum of $2 million originally invested, then it is divided by the annual cash flow of $500,000. The calculation of the payback period would equal four years. After this time frame any financial proceeds will be considered profitable for the company. I conclude that the timeframe is adequate in comparison of the investment in this worthwhile investment financial venture for the company.
1.1 This report will provide guidance for the procedure of preparing an estimate for building works. It will include the factors that affect the overall cost of the project explaining them in general as well as explaining them on the example provided.
Research is conducted to examine different points of views of the importance of performance outcomes in a construction project in Hong Kong. ANOVA was used to analyse the data relative to how the performances were measured. Performances were measured using a performance criteria starting with the most important first, which is time. Timely completion of a project would prevent loss of revenue and penalities to the contractor.
Justice and forgiveness are often used in similar ways, except they are hypothetically opposites. Forgiveness is a term performed by someone when they are genuinely accepting an apology from someone who is sorry. Whether or not they accept that apology, is the simple thing that distinguishes justice from forgiveness. Although, justice and forgiveness do not go hand in hand. There are many other ways that these terms get interpreted incorrectly.
We are requested to assist the building with creating a method of construction cost data for client throughout the pre contract. The task of data collection is a difficult procedure and can be include to wide variations. Based upon our experience as quantity surveyors we chose to develop a cost data collection method. Our define construction line items and quantities for relativity building types.
This research paper is focused on one of the biggest concern of the construction industry in today’s world, which is “Construction Delay Claims”. A construction project consists different individual or interdependent activities. There is a higher possibility that some sort of delay might occur in any of the involved activities. In order to mitigate issue of delays and make delay claim resolving process easier, researcher and engineers came with an idea which is know as “Critical Path Method (CPM)”. CPM would have different activity paths but among them the longest path (based on time duration) is known as critical path. Critical path is also known as “Zero Float Path”. Float is a certain extra amount of time allotted to activities which can be utilized before or during that activity. It can be understood that any delay in the activities that are on critical path could cause overall project to be delayed. Though delays are quiet common in construction projects, it is necessary to determine whether the delay is critical or not. Once the criticality of the delay is decided then the responsible party for the delay is determined. This is the basic logic behind all the construction delay claims assessment methodologies. Key tools in the assessment procedure are As- planned schedule and As- build schedule for the project. As- planned scheduled is the schedule submitted by the contractor to the owner prior to the construction work starts. As- build schedule is the schedule which
What do plants need to survive? The answer is simple. There are multiple key factors that are necessary to a plant’s survival. The first is water. No plant can survive without water. There is also the important factor of sunlight. Sunlight gives the plant the necessary energy it needs to undergo photosynthesis. An important factor that nobody else really thinks about is measurement. The right amount of everything is what makes the plant grow high and mighty. Any wrong measurements of materials can cause the plant to die. There is also air. Air is the one thing that no living specimen can survive without. Plants also need space to survive. If the plants get too crowded, then those plants start to compete for resources. Eventually, one plant
The use of an accounting rate of return also underscores a project 's true future profitability because returns are calculated from accounting statements that list items at book or historical values and are, thus, backward-looking. According to the ARR, cash flows are positive due to the way the return has been tabulated with regard to returns on funds employed. The Payback Period technique also reflects that the project is positive and that initial expenses will be retrieved in approximately 7 years. However, the Payback method treats all cash flows as if they are received in the same period, i.e. cash flows in period 2 are treated the same as cash flows received in period 8. Clearly, it ignores the time value of money and is not the best method employed. Conversely, the IRR and NPV methods reflect that The Super Project is unattractive. IRR calculated is less then the 10% cost of capital (tax tabulated was 48%). NPV calculations were also negative. We accept the NPV method as the optimal capital budgeting technique and use its outcome to provide the overall evidence for our final decision on The Super Project. In this case IRR provided the same rejection result; therefore, it too proved its usefulness. Despite that, IRR is not the most favorable method because it can provide false results in the case where multiple negative
Cost of risk is a concept many construction companies have never thought about despite the fact that it is one of the
Humans depend on plants in numerous ways. One reason we depend on plants is for consumption. Plants have the unique ability of producing their own food through a process called photosynthesis. In this process, plants are able to produce macromolecules such as carbohydrates that cannot be produced in animals or humans. In humans, the only to gain these macromolecules is to consume plant matter, or consume plant-eating animals (herbivores).
period (based on operating schedules and budgets) in terms of materials used, labor cost, and overhead cost, and then determining how much of this production, if any, was used to build up
It is expressed in time or years. It is normally defined as the period, usually expressed in years, which it takes the cash inflows from an investment project to equal the cast outflows.
Inflation has been in existence in the construction industry from time immemorial. Although, it was in significant during the stone age but in recent years has been so permanent due to technological development, complexity of client, construction cost and variation to meet the tastes of the day.