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SEC.00 — HEROfactibilidad.io / en-US
Applied Engineering Economics

About to risk your savings
on a business? Run the numbers first.

We use engineering economics — the same methodology industrial engineers use to evaluate million-dollar investments — in a 5-minute form.

Methodology based on Blank & Tarquin, the global standard · First analysis free

fact.engine.solve()
iter 14 · err 1.2e⁻⁷
INPUT
CAPEX$480kOPEX$96k/yrWACC12.5%
SOLVE
NPV= Σ CFₜ / (1+r)ᵗ − I₀
IRR: NPV(r*) = 0
NPV
+$0k
IRR
0.0%
BEP
0.0 yr
VERDICTVIABLE
FIG.00 —Example: engine running
▲ LIVEENGINE OUTPUTS
NPV/ NPV
Net Present Value
+$0.0M+34%
IRR/ IRR
Internal Rate of Return
0.0%> WACC
PBP/ Payback
Payback Period
0.0 yr↓ −1.4y
TOR/ Tornado
Sensitivity Analysis
0 vars±/×
SEC.01 — METHODOLOGY03 steps · 01 engine

From data
to decision.

RUNTIME
~5 min
STEPS
03
OUTPUT
NPV·IRR·BEP
SOLVER
Newton-Raphson
01INPUT

Enter your
data

Guided mode (question-driven) or advanced mode (full technical grid with CAPEX, WACC, OPEX). Both feed the same engine.

CAPEX$
OPEX$/yr
WACC%
HORIZONn
ASISTIDOAVANZADO
02COMPUTE

The engine
calculates

Deterministic algorithms: NPV, IRR via Newton-Raphson, Break-even Point, and partial derivatives for the Sensitivity Tornado.

NPV= Σⁿ CFₜ/(1+r)ᵗ − I₀
IRR: NPV(r*) = 0
BEP= CF/(P − CV)
∂NPV/∂xᵢ → Tornado
NPVIRRBEP∂/∂x
03OUTPUT

Make
decisions

Professional dashboard: cash flow chart, NPV profile, safety margin gauge, and impact-ranked Tornado Chart.

NPV > 0IRR > WACC
VIABLE
DASHBOARDPDF
FIG.01 — DATA → DECISION PIPELINEfactibilidad.io / methodology
SEC.02 — WHY

The difference between intuition and certainty

Why Engineering
Economics?

A spreadsheet shows you numbers. Engineering economics tells you whether those numbers make sense. We apply principles developed over decades in industrial, infrastructure, and manufacturing projects — now available for any venture, no engineer on your team required.

01

International standard methodology

Based on Blank & Tarquin and ASTM standards — the same framework used by engineering universities and financial institutions worldwide.

02

Same principles, any scale

NPV, IRR, and sensitivity analysis apply equally to a $10M project and a family business. The math doesn't discriminate.

03

Built for entrepreneurs

MARR calibrated for real-world contexts, realistic horizons for SMEs, and language designed for founders who want answers, not textbooks.

SEC.03 — THE 4 PILLARSauditable formulas

The same tools industrial engineers use to evaluate multi-million-dollar investment projects. Now for your venture.

Net Present ValueP.01

NPV

NPV = Σ FCt / (1 + i)^t − I₀

How much is the money you'll earn in the future worth today? If you put in $100 now and get back the equivalent of $80 in today's dollars after 5 years, the business destroys value.

If NPV > 0, the project earns more than the minimum required return. Invest.

Internal Rate of ReturnP.02

IRR

0 = Σ FCt / (1 + IRR)^t − I₀

At what effective interest rate does your investment work? If your bank gives 10% and your business delivers 35%, the decision is obvious.

If IRR > MARR, the project beats your opportunity cost. Move forward.

Payback PeriodP.03

Payback

t* = min t | Σ FCk ≥ I₀

When do you recover your invested capital? It's the time it takes to get back to zero before you start earning a profit.

Defines your risk exposure. The shorter, the more liquid and less vulnerable the project.

Break-even PointP.04

Break-even

Q* = FC / (P − UVC)

How many units do you need to sell to avoid losses? Below that number, every month you operate costs you money.

If your estimated volume exceeds Q*, the business is structurally viable.

The concept no entrepreneur learns but everyone needs

TMAR
MARR — Minimum Attractive Rate of Return

The MARR is your opportunity cost: the minimum return you require from your investment before committing capital. If you can't beat it, the money performs better elsewhere — a savings account, a fund, another investment.

MARR = f + p

Risk-free rate plus a premium for the project's specific risk.

IRR > MARR

Required condition for a project to be financially attractive.

12–20%

Reasonable real MARR range for most markets in 2026.

SEC.04 — MODEL VARIABLEStable.inputs.06

The mathematical engine.

Category
Variable
Mathematical Impact
Why it matters
01 · Investment
CAPEX + Working Capital
Negative starting point on the cash flow Y-axis
A dollar poorly budgeted today is worth more in the future — the error compounds over time.
02 · Revenue
Price × Volume (P × Q)
Defines the slope of the revenue line
Price is the highest-sensitivity lever: a ±10% change moves NPV more than any other variable.
03 · Costs
Contribution Margin (P − UVC)
How much remains from each sale to cover fixed costs
The gap between price and variable cost determines how much each sale contributes to the bottom line.
04 · Structure
Monthly Fixed Costs (FC)
Determines the break-even point
Your fixed costs are the floor the business must clear before generating real profit.
05 · Time
Evaluation Horizon (n)
Upper limit of the NPV summation
5 years is the professional standard. Beyond 10, uncertainty invalidates the calculations.
06 · Financial
Discount Rate (MARR)
Cut-off rate for the NPV profile
If your IRR doesn't beat your MARR, the money performs better elsewhere. It's your opportunity cost.
SEC.05 — REAL CASES

Which one fits you?

Entrepreneurs like you used factibilidad.io to make decisions based on math, not gut feelings.

CASE.01
Restaurant
Buenos Aires, Argentina
VIABLE
VPN
$0.0M
TIR
0%
Recupero
0.0 años

With these numbers they decided to open a second location before the first year was over.

CASE.02
E-commerce fashion
Montevideo, Uruguay
RETHINK
VPN
−$0K
TIR
0%
TMAR
0%

The analysis showed the current price left too thin a margin. They adjusted the average ticket and recalculated.

CASE.03
B2B Consultancy
Bogotá, Colombia
VIABLE
BEP
0 cli/mes
TIR
0%
Recupero
0 meses

They already had 6 active clients. The analysis confirmed the model was solid enough to scale with a partner.

SEC.06 — FAQ

Everything you want to know.

No. The guided form uses founder language — no jargon. We ask how much you'll sell, what it costs to produce, and how much you need to invest. The math engine does the rest.

SEC.07 — START

Find out in under 5 minutes. No spreadsheets, no consultants — the same mathematical rigor.

Start for free