Civil Engineering

Course Number CEng 4232

Course Title Engineering Economics
Module Title CONTRACT MANAGEMENT
Module Coordinator TBA
Lecturer TBA
ECTS 4
Study Hours Lecture Tutorial Practice or Laboratory Home study Total Hour
2 2 0 3 7
 Understand the basic concepts of engineering economics.
 Understand the time value of money.
Course Objectives  Understand the concepts behind benefit-cost analyses.
 Understand the concept of depreciation.
 Understand the basics of construction project financial management
 Calculate present, future worth and rates of return on investment.
Competences to be  Carry out economic evaluation and choose among investment alternatives.
Acquired/course  Develop and understand benefit-cost analyses.
level competences  Study depreciation of different machinery and infrastructure assets.
 Prepare project financial requirements and cash flow diagram.
 Prepare and interpret simple economic feasibility study
Investment; time value of money: Interest, present worth; annual worth; rate of return; future
worth. Costing: Cost centers; labor cost; investment/owning cost; operating cost; equipment
Course Description cost. Economic analysis: payback period: Benefit/cost analysis; Sensitivity analysis; feasibility
study; case study: economic analysis civil projects: economic analysis of multi-purpose
projects, project appraisal. Project cash flow analysis. Depreciation
Accounting.
1. BASIC CONCEPTS OF ENGINEERING ECONOMICS
1.1. Introduction
1.2. Engineering economics decisions
1.3. understanding financial statements
2. COST OF MONEY
 2.1. Interest
2.2. Time value of money
2.3. ECONOMIC EVALUATION
. Present worth and Future analysis
Course Online . Payback periods
. Internal rate of return
. Benefit cost analysis
PRECIATION AND REPLACEMENT ANALYSIS
ITRODUCTION TO FINANCIAL MANAGEMENT
ERVIEW OF PROJECT ECONOMIC FEASIBILITY STUDY
Pre-requisites None
Semester Year IV, Semester II
Status of Course Compulsory
Mode of delivery Lectures, tutorials
Mode of assessment Continuous Assessment60% Final
Examination 40%
Attendance A student must attend at least 85% of the classes
Requirements
 Ted G. Eschenbach, Engineering Economy: Applying Theory to Practice, Oxford
University Press, 2011.
 E. Paul DeGarmo, William G. Sullivan, James A. Bontadelli, Elin M. Wicks, Engineering
Economy, Perntice Hal, 1997.
Literature  Donald G. Newnan, Ted G. Eschenbach, Jerome P. Lavelle, Engineering Economic
Analysis, Oxford University Press, 2009.
 James L. Riggs, David D. Bedworth, Sabah U. Rundhawa, Engineering Economics,
McGrawhill Education, 1996.