Engineering Economic Analysis (EEA)

The Engineering Economic Analysis (EEA) program offers four types of economic analysis studies. All four are bundled into one seamlessly integrated package.

EEA Analysis Studies

Study #1: Private Sector Lifecycle Analysis

• Conducts detailed comparisons of the lifecycle economics of design alternatives. The analysis provides features required by private firms making investment decisions.
• In these applications, maximizing profit is the key concern.
• Alternatives are rated on the basis of internal rate of return (IRR), net present worth savings, total present worth and payback period.

Study #2: Public Sector Lifecycle Analysis

• Conducts detailed comparison of lifecycle economics of design alternatives. In this case, the analysis provides features required by government or non-profit organizations making economic decisions.
• In these applications, cost effectiveness is the key concern.
• Designs are rated on the basis of savings to investment ratio (SIR), total present worth and payback period.

Study #3: Simple Payback Analysis

• Compares the investment and operating costs of pairs of design alternatives to determine the payback period.
• This analysis is useful for quick, simple cost studies.

Study #4: Simple Cash Flow Analysis

• Generates a cash flow table for each design alternative considered.
• This analysis is useful for projecting costs over a period of years and for determining total present worth of a design.

Engineering Economic Analysis Features

• Permits input of multiple investment cost items, loans, and depreciation of investments, annual operating costs and periodic operating costs for each design alternative.
• Calculates cash flow, total present worth, net present worth savings, internal rate of return, payback, savings to investment ratio.
• Customizes content of reports based on the type of analysis being performed and therefore the economic criteria being used to make decisions.
• Generates reports that combine text and graphics.
• Reduces user effort by importing annual energy cost data from HAP building simulations, if desired.
• Exports cash flow information in a text format suitable for loading into spreadsheet programs. This facilitates custom analysis of data by users.
• Provides extensive on-line help system and users manual provides explanations, tutorials and example problems.