Overview

Engineering economics is the domain that accommodates the implementation of economic techniques for the evaluation of engineering alternatives. This course is designed to deliver the fundamental concepts of engineering economy to the audience. It is a +6 hour course that covers the basics and numerical examples of engineering economics. This course covers the following topics: time value of money, arithmetic and geometric series, nominal and effective interest rates, measuring the worth of investment, rate of return analysis, comparison of alternatives, supplementary analysis, capital budgeting, depreciation methods, asset replacement analysis, and inflation analysis. This course tackles several methods of investment appraisal such as payback period, net present worth, net future worth, net annual worth, internal rate of return, external rate of return, savings/investment ratio and capitalized equivalent. With regards to asset depreciation, this course addresses the methods of straight line, units of production, sum of years digit, declining balance, and double declining balance. The content of this course also displays the computational procedures of sensitivity analysis and break-even analysis. As for replacement analysis, students will learn the approaches of insider viewpoint (cashflow) approach and outsider viewpoint (opportunity cost). As for inflation analysis, students will comprehend the terms of inflation rate, inflation free interest rate, market interest rate, real dollars and actual dollars. Students can find more than 130 solved examples in this course.

Skills

Reviews