1. Tutorial 2 Time Value of Money
SEEM 2510 Management Principles for Engineering Managers II
SEEM 2510 Management Principles for Engineering Managers II Tutorial 2

2. SEEM 2510 Management Principles for Engineering Managers II Tutorial 2
Economic Equivalence
Each cash flow can be converted to any equivalent value at any point of time
Judge on any project value by turning all cash flow at a common point in time
SEEM 2510 Management Principles for Engineering Managers II Tutorial 2

3. SEEM 2510 Management Principles for Engineering Managers II Tutorial 2
Interest Formulas
SEEM 2510 Management Principles for Engineering Managers II Tutorial 2

4. SEEM 2510 Management Principles for Engineering Managers II Tutorial 2
Cash flow diagrams
1. Identify the problem carefully
2. Draw a cash flow diagram
3. Decompose the cash flow diagram
such that it can be solved by some of
the previous equations
SEEM 2510 Management Principles for Engineering Managers II Tutorial 2

5. SEEM 2510 Management Principles for Engineering Managers II Tutorial 2

6. SEEM 2510 Management Principles for Engineering Managers II Tutorial 2

7. SEEM 2510 Management Principles for Engineering Managers II Tutorial 2

8. SEEM 2510 Management Principles for Engineering Managers II Tutorial 2
Reference
Chan S. Park, Fundamentals of Engineering Economics. 2nd Edition. Prentice Hall, 2008
SEEM 2510 Management Principles for Engineering Managers II Tutorial 2