GE403: Engineering Economy


In this course we will discuss the Systematic Economic Analysis Technique. For it, we will learn Cost concepts, Time value of money operations, Measuring the worth of investments, Comparison of alternatives, Depreciation, Economic analysis of public projects one by one.

Students completing this course successfully will be able to

  1. Recognize the time value of money and its operations.
  2. Compare projects alternatives by different techniques.
  3. Measure and determine depreciation and replacement.
  4. Compare the economics of different projects in public and regulator sectors.
  5. Recognize the cost concepts and the cost terminology.

Topics to be covered;

  1. Introduction to Engineering Economic Analysis: Principles of Engineering Economic Analysis, Economic Analysis Techniques. 
  2. Time Value Of Money: Cash Flow Diagrams, Simple Interest Calculations, Compound  Interest Calculations, Multiple Compounding Periods in a year and Continuous Compound  Interest Calculations.
  3. Equivalence and Indiffrence
  4. Comparison of Alternatives:, Choosing Planning Horizons
  5. Present Worth Analysis: Single Alternative, Multiple Alternatives, One shot investiment
  6. Payback Period: Single Alternative, Multiple Alternatives
  7. Capitalized Worth: Single Alternative, Multiple Alternatives
  8. Fut ur Worth Analysis: Single Alternative, Multiple Alternatives, One shot investiment
  9. Annual Worth Analysis: Single Alternative, Multiple Alternatives, Least Common Multiple of Lives Assumption
  10. Capital Recovery Cost
  11. Internal Rate of Return: Single Alternative, Multiple Alternatives
  12. External Rate of Return: Single Alternative, Multiple Alternatives
  13. Analizing Alternatives With no Positive Cash Flow
  14. Depreciation.
  15. Replacement Analysis
  16. Economic Analysis of Public Projects
  17. Cost Terminology: Life Cycle Viewpoint, Past/Future Viewpoint, Manufacturing Cost Structure  Viewpoint , Fixed/Variable  Viewpoint and Average/Marginal Viewpoint


المرفق الحجم
Ch.1 Identify feasible alternatives 489.26 كيلوبايت
Ch.2 Simple interest, Compound interest, Single sum 805.57 كيلوبايت
Ch.2 Uniform series 759.7 كيلوبايت
Ch.2 Gradient Series 329.89 كيلوبايت
Ch.2 Geometric Series 553.74 كيلوبايت
Ch.2 Multiple compounding 264.07 كيلوبايت
Ch.3 Equivalence and variable interest 462.05 كيلوبايت
Ch.4 The Planning Horizon 592.83 كيلوبايت
Ch.5 Pw analysis, DPBP and PBP 651.86 كيلوبايت
Ch.5 Capitalized worth 1.61 ميغابايت
Ch.6 & Ch.7 665.41 كيلوبايت
Ch.8 Rate of return analysis 317.7 كيلوبايت
Ch.9 Depreciation 427.76 كيلوبايت
Ch.11 340.44 كيلوبايت
Ch.14 452.82 كيلوبايت
Ch.16 221.29 كيلوبايت
ملحقات المادة الدراسية