How can economic engineers evaluate Design Alternatives to gauge product cost and price?

The monetary evaluation of the substitute for meeting a given goal is known as Economic Analysis. For instance, for meeting the need for more space in the office a decision-maker will construct new space, renovate the office, or will rent another building. The evaluation is done on the basis of a comparison of discounted costs and benefits over a fixed span of time. Substitutes can be summed up as far as the proportion of absolute advantages to adding up to money-saving advantage (cost proportion) or equally, all-out net advantages (net present worth).

To estimate the economic consequences of a decision are:

1. The target and the problem should be properly defined
2. While considering any imperatives list the attainable choices for achieving the goal.
3. Check that economic analysis is used or not. and if it is used than at which level it is justified.
4. Select a technique or strategy for economic analysis.
5. If the data which is used with the economic method is unsure then select the strategy that can represent uncertainty as well as risks.
6. Collect the information and make suspicions called for by the economic analysis method(s) and risk analysis procedure.

7.Calculate the measure of economic performance

8.While making the decision compare the economic consequences of alternatives considering any non-evaluated impacts and the risk feature of the leader.