In Module 2, you'll transition from conceptual understanding to practical mastery of time value of money calculations, learning why a dollar today is mathematically different from a dollar tomorrow—and exactly how to quantify that difference. You'll discover that while everyone in practice uses Excel for financial calculations, understanding the underlying equations is what separates analysts who can catch million-dollar errors from those who blindly trust their spreadsheets. Through hands-on examples and clever tools like the Rule of 72, you'll build the mathematical intuition and computational skills needed to confidently analyze investment opportunities, compare alternatives across time, and make sound financial decisions in your engineering management career.

Most engineering projects don't involve simple one-time payments—they generate steady annual costs, linearly escalating maintenance expenses, or revenues that grow with inflation. This week, you'll master three essential cash flow patterns (uniform, gradient, and geometric series) and learn how multiple compounding periods within a year dramatically affect the true cost of financing, transforming your ability to analyze realistic scenarios like monthly mortgage payments, equipment leases with daily interest compounding, and maintenance contracts that escalate predictably over time.

This week challenges you to think beyond simple rankings by asking a more strategic question: "Is spending more money actually worth it?" You'll learn to evaluate whether incremental investments generate sufficient returns using Internal Rate of Return (IRR) and External Rate of Return (ERR)—powerful tools that help you justify capital decisions and communicate financial recommendations in the language of "percent return" that resonates with executives and stakeholders.