People Innovation Excellence

ENGINEERING ECONOMY (2 Credits)

Learning Outcomes:

On successful completion of this course, student will be able to: Evaluate engineering economic decision criteria (future, present, annual worth, IRR, B/C Ratio, payback period); Generate cash flows to obtain equivalent values for a different time point or frame; Generate alternatives and derive valid IRR/ERR, BEP, payback period, benefit/cost estimations and replacement analysis from available data; Use after tax cash flow analysis, and depreciation accounting rules; Utilize commercial software tools to support economic decision making

Topics:

  1. Foundations of Engineering Economy & How Time and Interest Affect Money;
  2. Nominal and Effective Interest Rates;
  3. Present Worth Analysis;
  4. Annual Worth Analysis;
  5. Rate of Return Analysis;
  6. Benefit/Cost Analysis;
  7. Break Even and Payback Analysis;
  8. Replacement and Retention Decisions;
  9. Depreciation Methods;
  10. After-Tax-Economic Analysis;
  11. Project Presentation.

 


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