Learning Objectives :
This course will discuss the decision making in engineering and businesses based on economical considerations. Also will be discussed time value of money concept, interest, cash flow, equivalence, alternatives comparison, and depreciation, the concept of taxes, investment, and replacement.
1. Understand the basic concepts of engineering economics in order to improve the efficiency and effectiveness of the technique.
2. Able to calculate and analyze changes based on the time value of money.
3. Able to choose the best alternative from a number of alternatives available to the method of engineering economics.
4. Able to perform a sensitivity analysis to estimate cash flow if the parameters are variable.
5. Understand the concept of depreciation and taxes on a company’s activities and is able to perform the calculation
Model of decision-making processes or in engineering, the concept of time value of money, the concept of interest (interest), cash flow diagram, and the concept of equivalence (Present Worth, Annual Worth, Future Worth), the methods of analysis as a basis for comparison of alternatives (Present Worth Analysis, Annual Worth (EUA) Analysis, Future Worth analysis, IRR analysis, Benefit Cost Ratio analysis, Pay Back Period analysis, and Incremental analysis), investment analysis, replacement analysis.