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Engineering economies tools to show its effect in decision making. Compare between them using engineering economics tools that been covered in the class (attached the covered materials).
Example of renting a villa or buying a villa which option is better and cost effective that should be concluded from the tools and suggest to use the cash flow diagram and NPV as tools.
Say villa rent is 250,000 Dhs and buying the same villa is 5,000,000 Dhs and the bank profit is 3.99%
You can find by searching for a villa to rent or buy in Abu Dhabi, UAE.
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ECONOMIC DECISION MAKING
Details of the case: Renting or purchasing a house? – which is right decision in the given case scenario
Decision making & economics:
Making decision is a mandatory requirement for any one in life, there comes a need for any person in life at several occasions to take a decision. As far financial issues and economics is concerned, basic knowledge of the economics is needed for an effective decision making. There are number of economic tools available to make decisions at key junctures for financial crisis management. The financial tools can be used by both the professionals from the economics field as well by other non- professional equally, only basic knowledge of using the tools will be sufficient to take decisions on the complicated issues. The effectiveness of the decisions will depend on the assumptions made during the process as well as consideration as many number of variables that influence the decision into consideration.
Present case – Introduction: