Describe the Engineering Method of Cost Estimation

question 92

Essay

Describe the engineering method of cost estimation. Provide two advantages and two disadvantages associated with the engineering approach to cost estimation.

---

Definitions:

Upward-Sloping

Describes a line on a graph that inclines from left to right, indicating a positive relationship between two variables.

Natural Gas

A fossil fuel composed mainly of methane, used as a source of energy for heating, cooking, and electricity generation.

Market Rate Of Interest

The prevailing rate at which borrowers and lenders agree to transact, typically influenced by supply and demand in the financial markets.

Present Value

The today's value of money or cash flows to be received in the future, factored by a particular rate of return.