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Engineering Economics_Course Introduction

The Engineering Economics course aims to teach the fundamentals of economic theory and its application in evaluating the economic viability of engineering projects. Key learning outcomes include understanding financial considerations, time value of money, cost-effectiveness analysis, and cash flow development. The course will cover various economic concepts, project analysis methods, and financial calculations relevant to engineering practice.

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Irtaza Hussain
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2 views4 pages

Engineering Economics_Course Introduction

The Engineering Economics course aims to teach the fundamentals of economic theory and its application in evaluating the economic viability of engineering projects. Key learning outcomes include understanding financial considerations, time value of money, cost-effectiveness analysis, and cash flow development. The course will cover various economic concepts, project analysis methods, and financial calculations relevant to engineering practice.

Uploaded by

Irtaza Hussain
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

9/2/2025

Engineering Economics

Course Introduction

Course Objective
• To understand the fundamentals of economics theory and its
application to engineering products and projects for evaluation of
their economic viability.

1
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Assigned Program Learning Outcomes (PLOs)


2 An ability to identify, formulate, research literature, and analyze complex engineering
problems reaching substantiated conclusions using first principles of mathematics,
natural sciences and engineering sciences.

6 An ability to apply reasoning informed by contextual knowledge to assess societal,


health, safety, legal and cultural issues and the consequent responsibilities relevant to
professional engineering practice and solution to complex engineering problems.

12 An ability to recognize importance of, and pursue lifelong learning in the broader context
of innovation and technological developments

Course Learning Outcomes (CLOs)

No. Course Learning Outcome (CLO) Statements Assessment Tools Taxonomy PLO
Levels

1 Recognize the fundamental economic and Q1,M1,A1 C2


financial considerations involved in engineering
projects
2 Interpret the concept of time value of money Q2,M2,F C3

3 Analyze cost effectiveness of alternatives using Q3,M2,F C4


engineering economy methods

4 Develop cash flow sequences that include the A2,M2,F C5


effects of taxes and depreciation

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Text Book

• Title: Engineering Economy, 7th Edition


• Authors: Blank L. and Anthony T
• Publisher: McGraw Hill

Course Contents_1
• Definition of economics/concept of scarcity,
• Economic goods & free goods, resources, Land, Labor, Capital,
management, Economy system, telecom market,
• Microeconomics, Elasticity, Demand, and Supply
• Macro Economics, Monetary Policy, Economic growth
• Forms of business / Interest rate & rate of return / Inflation / Time value of
money / cash flow/ Minimum acceptable rate of return / Simple &
Compound Interest
• F/P and P/F Factors / P/A and A/P Factors / A/F and F/A Factors / Arithmetic
Gradient factor / Geometric gradient factor
• Uniform shifted series, series with randomly placed amounts, calculation
for shifted increasing/decreasing gradients

3
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Course Contents_2
• Mutually exclusive alternatives, PW/FW analysis of equal-life alternatives,
PW/FW analysis of different-life alternatives
• Incremental analysis, differences between private and public projects /
Developing benefit-cost ratios / Analysis of single project / Analyzing two
projects, Handling more than two projects
• Basics of the replacement study, replacement due to obsolescence
• Replacement and retention decisions Economic service life, performing a
replacement study
• Breakeven Analysis for single project/between two alternatives
• Understanding the impact of inflation, PW/FW calculations adjusted for
inflation
• St. line depreciation, declining balance, double declining balance, MACRS
• Income tax terminology & relation for corp. / individual, income statement

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