Engineering Economy ENGI 4317

Course description:

This course includes an introduction to the concepts governed in the determination of the economic feasibility of engineering undertakings, especially the time value of money, interest rates, depreciation, replacement, economic life, present value, rate of return, payback period. Other topics will include financing, supply and demand, private and social cost estimations, secondary and intangible benefits and costs, benefit-cost models, economic risk analysis, economic optimization.

Course Aims:

The main aim of this course is to provide engineering students with the basic knowledge required to analyze cost/revenues data and conduct economic analyses to enable the decision to be made on an economic basis.

Course outcomes:

Upon completion of this course, the student should be able to:
  • Perform and evaluate present worth, future worth and annual worth analyses.
  • Calculate payback period.
  • Define causes of inflation and measures of inflation rate. 
  • Carry out and evaluate benefit/cost, life cycle and choose among different alternatives.
  • Conduct Break-Even Analysis: Linear & non-linear break-even analyses.
  • Perform risk analysis; decision making under risk & uncertainty.