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Engineering Economy, 5/e
Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso
Effects of Inflation

Learning Objectives

Purpose: Consider inflation in an engineering economy analysis.

This chapter will help you:


1. Impact of inflation

Determine the difference inflation makes between money now and money in the future.

2. PW with inflation

Calculate present worth with an adjustment for inflation.

3. FW with inflation

Determine the real interest rate and calculate a future worth with an adjustment for inflation.

4. AW with inflation

Calculate an annual amount in future dollars that is equivalent to a specified present or future sum.








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