Engineering projects come in many shapes and sizes, but they can generally be broken down into the following phases. Planning / Preliminary Engineering. This is the stage at which the options are considered and the pros and cons evaluated. Most engineering projects involve the creation of a new product or the destruction and re-build of an existing one, and … [Read more...]
The calculation of the net present value (NPV) is a budgeting technique that equates the discounted cash flows against the initial investment. The mathematical formula is: $$NPV = \sum_{t=1}^{n}\frac{FV_{t}}{(1 + k)^{t}} - I$$ Where: FV = Future cost of the cash inflows, I = Initial Investment k = Discount rate equal to the owner's cost of capital I … [Read more...]
Engineers are not normally taught the principles of project management, although it is a critical function in their careers. Most engineers see themselves as technical experts, not project managers, but business is business and every engineer I know of seems to find themselves face to face with the realities of timelines, budgets, and people management on a regular … [Read more...]
