Course Name ENGINEERING ECONOMICS

Concepts of the time value of money and equivalence; basic economy study
Course
methods; decisions under certainty; decisions recognizing risk; and decisions
Description
admitting uncertainty.

Number of Units
for Lecture and 3 units lecture
Laboratory

Number of
Contact Hours per 3 hours lecture
Week

Prerequisite Second Year Standing

Program
Outcome/s
e-E, k-E
Addressed by the
Course

After completing this course, the student must be able to:

1. Solve problems involving interest and the time value of money;

Course
2. Evaluate project alternatives by applying engineering economic principles and
Outcomes
methods and select the most economically efficient one; and
3. Deal with risk and uncertainty in project outcomes by applying the basic
economic decision-making concepts.
1. Introduction
1.1. Definitions
1.2. Principles of Engineering Economics
1.3. Engineering Economics and the Design Process
1.4. Cost Concepts for Decision Making
1.5. Present Economic Studies
2. Money-Time Relationships and Equivalence
2.1. Interest and the Time Value of Money
2.2.
2.3. The Concept of Equivalence
2.4. Cash Flows
3. Economic Study Methods
3.1. The Minimum Attractive Rate of Return
Course Outline 3.2. Basic Economic Study Methods: Present Worth, Future Worth,
Annual Worth, Internal Rate of Return, External Rate of Return
3.3. Other Methods: Discounted Payback Period, Benefit/Cost Ratio
4. Decisions Under Certainty
4.1. Evaluation of Mutually Exclusive Alternatives
4.2. Evaluation of Independent Projects
4.3. Effects of Inflation
4.4. Depreciation and After-Tax Economic Analysis
4.5. Replacement Studies
5. Decisions Recognizing Risk
5.1. Expected Monetary Value of Alternatives
5.2. Discounted Decision Tree Analysis
6. Decisions Admitting Uncertainty
6.1. Sensitivity Analysis
6.2. Decision Analysis Models

https://www.objectivebooks.com/2016/10/mcq-test-on-engineering-economy.html quiz