Engineering Economy

Learning Outcomes

At the end of this course, students 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.