ENEE 300 ENGINEERING ECONOMICS

This course emphasizes the strong correlation between engineering design and manufacturing of products/systems and the economic issues they involve. The basic concepts of the time value of money and economic equivalence is applied throughout the course. Each engineering problem/project progressively incorporates different cash flows, the cost of funds, capital, operational and maintenance costs, salvage value, depreciation, amortization, and taxation. Students learn to apply different economic analysis methods – like present worth, annual-equivalent worth, rate-of-return, life-cycle cost, cost/benefit etc. – in evaluating the economic viability of a project, as well as the comparison of mutually exclusive alternatives. The course also introduces concepts of replacement decisions, capital-budgeting decisions, and project risk and uncertainty, and exposes students to specific issues of economic analysis of the private sector versus the public sector. Applications to a variety of engineering fields’ actual cases are stressed throughout the course.

Credits

3

Offered

Semester 1 and 2