Engineering Commons^™

Comparative Study Of Inflation Techniques Currently Used In Engineering Economy Studies, Thinh P. Dong

Retrospective Theses and Dissertations

Recent increases in inflation rates make it essential that inflation be considered and properly treated in engineering economic studies. This research report presents a survey to determine how practitioners of engineering economics are accounting for inflation in their studies. After looking at inflation in general, and defining it, this report identifies the major existing techniques of handling inflation. It then discusses each in terms of advantages and disadvantage in evaluating investment projects. Finally, the report recommends an appropriate technique, and presents a computer program which calculates the present worth based on this technique which permits the user to analyze the …