Business Skills for Engineers and Technologists

5

Money in the organization

Summary

There is a song titled ‘Money makes the world go round’ and that is certainly true for organizations. Money is what enables organizations to survive now and into the future. As an engineer you will need to know how your organization structures its internal finances and use this in making decisions.

There is little real mystery surrounding financial aspects which you cannot grasp, if you understand the language used in the financial function. This chapter sets out to explain this key aspect of business.

Objectives

By the end of this chapter, the reader should:

• be able to carry out investment appraisal using the techniques of payback, rate of return and discounted cash flow whilst considering non-financial ...