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GELE MathematicsEngineering EconomyConcept Map

Concept maps turn Engineering Economy from a list of facts into a connected picture. For GELE Mathematics, this visual makes it easier to see how Engineering Economy relates to other chapters Professional Regulation Commission (PRC) — Board of Geodetic Engineering tests in the same paper.

Exam context

On the GELE 2026, the Mathematics subtest carries a "Core" weight in Professional Regulation Commission (PRC) — Board of Geodetic Engineering's pattern. Engineering Economy lands at position 10th out of 10 in the standard review order. Target score is 70% weighted average, no sub-test below 50%, and roughly a meaningful share of items come from Mathematics on a typical GELE paper.

Engineering Economy - Concept Map

Central Concept

Engineering Economy: Decision-Making on Economic Alternatives over Time

Related Concepts

Concept

Time Value of Money

Sub Concepts

  • Simple Interest
  • Compound Interest
  • Present Worth
  • Future Worth
  • Nominal vs Effective Rates

Relationship To Central

Foundation principle underlying all economic calculations

Concept

Interest and Compounding

Sub Concepts

  • Period Interest Rate (i)
  • Number of Periods (n)
  • Compounding Frequency (m)
  • Continuous Compounding
  • Effective Annual Rate (EAR)

Relationship To Central

Core mechanism for time-value calculations

Concept

Annuities and Uniform Series

Sub Concepts

  • Ordinary Annuity (End-of-Period)
  • Annuity Due (Beginning-of-Period)
  • Future Worth of Annuity
  • Present Worth of Annuity
  • Perpetuities

Relationship To Central

Methods to evaluate recurring equal payments

Concept

Depreciation Methods

Sub Concepts

  • Straight-Line (SL)
  • Sum-of-Years-Digits (SYD)
  • Declining Balance (DB)
  • Book Value Calculation

Relationship To Central

Reduces asset value systematically for accounting and tax purposes

Concept

Economic Comparison Methods

Sub Concepts

  • Present Worth (PW)
  • Annual Worth (AW)
  • Rate of Return (ROR)
  • Payback Period
  • Benefit-Cost Ratio (B/C)

Relationship To Central

Techniques to select best alternative based on economic merit

Concept

Cash Flow Analysis

Sub Concepts

  • Initial Investment
  • Operating Costs
  • Salvage Value
  • Net Cash Flow
  • Cash Flow Diagrams

Relationship To Central

Organizes project costs and benefits chronologically

Concept

Break-Even Analysis

Sub Concepts

  • Break-Even Point
  • Sensitivity Analysis
  • Variable Costs
  • Fixed Costs

Relationship To Central

Determines point where two alternatives are economically equivalent

Concept

Loan and Debt Analysis

Sub Concepts

  • Loan Principal
  • Interest Calculations
  • Amortization Schedules
  • Effective Interest Rate

Relationship To Central

Evaluates financing options and repayment obligations

Concept Connections

To

Compound Interest

From

Time Value of Money

Strength

strong

Relationship

Compound interest is the primary mathematical mechanism implementing time-value principles

To

Present Worth

From

Compound Interest

Strength

strong

Relationship

Present worth uses discounting (inverse of compound interest) to bring future values to today

To

Time Value of Money

From

Annuities and Uniform Series

Strength

strong

Relationship

Annuity formulas apply compound interest principles to recurring equal payments

To

Economic Comparison Methods

From

Depreciation Methods

Strength

moderate

Relationship

Depreciation affects taxable income and cash flows used in economic analyses

To

Present Worth

From

Economic Comparison Methods

Strength

strong

Relationship

Present worth is one of the primary methods for comparing alternative investments

To

Annual Worth

From

Economic Comparison Methods

Strength

strong

Relationship

Annual worth converts all costs to equivalent annual amounts for easy comparison

To

Present Worth

From

Cash Flow Analysis

Strength

strong

Relationship

Present worth analysis requires proper organization and timing of all project cash flows

To

Economic Comparison Methods

From

Break-Even Analysis

Strength

moderate

Relationship

Break-even identifies the point where two alternatives have equal economic merit

To

Nominal vs Effective Rates

From

Interest Mechanisms

Strength

strong

Relationship

Effective rate converts nominal rate to true periodic rate for different compounding frequencies

To

Annuities and Uniform Series

From

Loan and Debt Analysis

Strength

strong

Relationship

Loan repayments are typically modeled as ordinary annuities with calculated interest

To

Present Worth

From

Rate of Return

Strength

strong

Relationship

Rate of return is found by solving for interest rate where PW equals zero

To

Present Worth

From

Benefit-Cost Ratio

Strength

strong

Relationship

B/C ratio uses present worth of benefits divided by present worth of costs

To

Depreciation Methods

From

Straight-Line Depreciation

Strength

strong

Relationship

Straight-line is the simplest and most commonly used depreciation method

To

Accelerated Depreciation

From

Sum-of-Years-Digits

Strength

strong

Relationship

SYD is an accelerated method that front-loads depreciation in early years

To

Annuities and Uniform Series

From

Perpetuities

Strength

moderate

Relationship

Perpetuity is a special annuity with infinite number of periods

To

Economic Comparison Methods

From

Payback Period

Strength

weak

Relationship

Payback period is a simple but limited method measuring initial recovery time

To

Loan and Debt Analysis

From

Amortization Schedules

Strength

strong

Relationship

Amortization schedules show period-by-period breakdown of principal and interest payments

To

Cash Flow Analysis

From

Initial Investment

Strength

strong

Relationship

Initial investment is the starting point of any project cash flow analysis

To

Depreciation Methods

From

Salvage Value

Strength

strong

Relationship

Salvage value is subtracted from capital cost to determine depreciable amount

To

Break-Even Analysis

From

Sensitivity Analysis

Strength

moderate

Relationship

Sensitivity analysis examines how decision changes when key variables vary

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