Imagine a new Without Flower!

 Imagine a World Without Herb! Essay

Construction Administration - 2 / Principles of Engineering Economics

Efficiency: Slide501. doc

Engineering Economics


§ During each of our examinations we assume a

consolidated overall economy. ( Totally free of extremities,

just like war, hyperinflation, corruption, and so forth,

and fundamentally operated by simply pure industry

mechanisms through stabil legal and

regulations' systems )

§ Our examinations are aiming at monetary

comparisions of functionally equal

technical and financial alternatives. Figures

lead by virtually any analysis of any option can

not really be examined as themselves but as ideals

to be measured against others.

§ Findings of our examinations are at most

supporting decision makers for their function

when elaborating their marketplace policy and/or

strategy, but are not substituting any

decisions to be manufactured by them.

BUTE DCTM / Engineering Applications in English language / 2000-

Dr . Zoltán András Vattai

Construction Administration - II / Principles of Engineering Economics

Overall performance: Slide502. doctor

Using External Resources

Foreign Capital

Because a typical investment in

civil engineering and in construction

industry goes huge amount of technical and

financial resources, it can be frequently

unavoidable to invoke external („foreign”)

resources and/or capital in the short term.


Promp available personal economic solutions.

(„self-financing capability”)


External economic resource temporarily allow

for use and be repaid later increased

by a little extra fee („foreign capital”, „loan



„Rent” („price”) of applying foreign capital.

Its degree is highly defined by the actual

„demand versus supply” circumstances.

BUTE DCTM / Engineering Programs in English / 2000-

Doctor Zoltán András Vattai

Building Management - II as well as Basics of Engineering Economics

Performance: Slide503. doc

Employing External Resources

Foreign Capital

Term as well as Pay-Back Period / Lending Period:

An occasion period in which a foreign capital is allow

for use. By the end of it the administrative centre itself and

the interest onto it must be entirely paid back.

Basic Interest: ( I )

The level (volume) of interest is none

related to how much the capital on its own nor

to the extent of pay-back period formally.

Present Value: ( P )

A fictive or genuine value of capital let for use

( lended or to be lended ) at the beginning of

lending period.

Future Value: ( H = Succeeding Value )

A fictive or real value of capital let for use

( lended as well as to be lended and elevated by the

fascination on it ) at the end of lending period.


BUTE DCTM / Engineering Programs in British / 2000-

Dr . Zoltán András Vattai

Construction Management - II / Principles of Engineering Economics

Overall performance: Slide504. doctor

Using Exterior Resources

Foreign Capital

Interest: ( we )

The extent (volume) of interest is formally

related to the amount of capital lended.



Nominal Period:

A pre-set extent of time ( period ) for which

the routine amount of interest ( related to the

amount of capital ) is set before hand.

( elizabeth. g.: 12 months, „annum” )

Compounding as well as Capitalization:

The movement ( generally by the end of a

nominal period ) when the because of interest on

lasted period(s) is usa with the capital itself

and the interest for the next nominal period is

computed in proportion of this cummulated

value ( … as if the cummulated worth was the

lended capital for nominal period ).

S1 = P0 ⋅ ( 1 & i ) ⇒ P1 = S1

S2 = P1 ⋅ ( one particular + i )

BUTE DCTM / Engineering Applications in British / 2000-

Dr . Zoltán András Vattai

Construction Supervision - II / Basics of Architectural Economics

Overall performance: Slide505. doctor

Using Exterior Resources

International Capital

Price cut Rate:

Upside down „value” in the Interest Rate intended for

„backward-” measurements, typically at the moment

Value computations. („Discounting”)

electronic. g.

one particular



Compound Quantity Interest:

The extent (volume) of interest is usually both related

to the...

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