EN450: Engineering Economic Analysis
EN450: Engineering Economic Analysis (3-0-3).
This course provides the basic methods and reasons for conducting an engineering economic study are presented. Economic criteria are developed. Procedures for making a selection from a set of technically feasible alternatives are studied. Assumptions and implications associated with these decision-making procedures are discussed. [fall, spring]
Chan S. Park , Contemporary Engineering Economics, 3rd Edition, by Prentice Hall, 2002.
Economics class notes, special topic handouts, Internet materials
- Understand the use of the time-value-of-money concept as it applies to financial decisions.
- Compare potential investments using net present worth, annual equivalent worth, rate of return or benefit/cost analyses.
- Evaluate the effects of inflation, depreciation and taxes on financial investments.
- Apply formulas in a spreadsheet program to facilitate financial computations and presentations.
- Formulate a budget and long-range financial plan in a project group.
1/C Engineering major or approval of NAOE Department Chairman
- Introduction & Engineering Economic Decisions
- Costs and Decision Making
- Interest Rates and Formulas
- Present Worth Analysis,
- Annual Equivalent Worth Analysis
- Rate of Return Analysis
- Depreciation and Taxes
- Replacement Decisions
- Benefit-Cost Analysis
Basic computer usage, such as use of word-processing and spreadsheet software, is expected for completion of various homework assignments and laboratory write-ups.
All students learn how to build loan amortization tables on a spreadsheet. Spreadsheets are used throughout the course to illustrate "what-if" and breakeven analysis.