Time value of money, uniform series, comparing alternatives, depreciation and break-even: four factor types and a cash-flow diagram handle nearly every FE Civil economics question.
NCEES lists these Engineering Economics topics for the FE Civil: time value of money; cost: incremental, average, sunk and estimating; break-even and benefit-cost analyses; uncertainty: expected value and risk.
Choose any section below to get a free FE Civil practice problem. Work it with the FE Reference Handbook open, tap your answer, then check the solution.
A dollar today is worth more than a dollar later because it can earn interest.
At 8% compounded annually, about how long does it take money to double?
(1.08)n = 2, so n = ln 2/ln 1.08 = 9.0 yr. (The rule of 72 gives 72/8 = 9 as a check.)
Common trap: (B) is simple interest: 100%/8%.
Engineering EconomicsSingle PaymentNominal and EffectiveThat was 1 of 3 problems in this section. The full course has the lesson, a worked example and every problem. Start your 3-day free trial →
An annuity is the same payment A every period.
What is the present worth of $1,000 per year for 20 years at 7%?
P = 1000(P/A, 7%, 20) = 1000(10.594) = $10,594.
Common trap: (A) is the future worth, F/A.
Uniform Seriescapital recoverysinking fundThat was 1 of 3 problems in this section. The full course has the lesson, a worked example and every problem. Start your 3-day free trial →
To choose between projects, bring every cash flow to the same basis: present worth, annual worth, or a benefit-cost ratio.
A project’s benefits have a present worth of $150,000 and its costs $120,000. What is the benefit-cost ratio?
B/C = 150,000/120,000 = 1.25. Above 1, so the project is justified.
Common trap: (B) inverts the ratio.
Present WorthCapitalized CostsBenefit-CostThat was 1 of 3 problems in this section. The full course has the lesson, a worked example and every problem. Start your 3-day free trial →
Depreciation spreads an asset’s cost over its life for tax purposes.
A product sells for $25, costs $15 a unit to make, and has $40,000 in fixed costs. How many units break even?
Each unit contributes 25 − 15 = $10. 40,000/10 = 4,000 units.
Common trap: (D) divides by the price instead of the contribution margin.
DepreciationMACRSBreak-EvenThat was 1 of 3 problems in this section. The full course has the lesson, a worked example and every problem. Start your 3-day free trial →
Newton’s Notes FE Civil has 18 chapters (11 shared with Mechanical, 7 Civil-only) with lessons, worked examples and 420+ FE-style practice problems with full solutions, 171 of them Civil-only. Pro adds a timed full-length FE Civil practice exam (110 problems), a custom test builder and Ask Newton, the AI tutor. Try it free for 3 days, no card to start.
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