3.5 Discussion Questions

Discussion and Review Questions

  1. What is the difference between simple and compound interest?
  2. Briefly explain what inflation is, and why it affects financial decisions.
  3. Briefly explain the concept of the time value of money. How does the time value of money influence financial decision-making?
  4. How do you determine if two proposals are economically equivalent?
  5. List the common types of cash flow series and give an example of each.


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Engineering Economics Copyright © by Schmid, B., Vanderby, S. is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.