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Engineering Economics Concepts and Numerical Examples

Date: 28 December 2024 | Posted by: 0nelove

Fundamentals of Engineering Economy

What you'll learn
Understand the concept of time value of money
Recognize simple and compound interest rates
Discuss arithmetic and gradient gradient series
Compute present worth, annual worth and future worth of investments
Perceive the concepts of nominal and effective interest rates
Address the cases of continuous compounding and variable interest rates
Analyze the economic feasibility of independent and mutually exclusive projects
Conceive the payback period method
Apply the concepts of internal and external rate of returns
Adopt the incremental approach in economic analysis
Implement SIR ratio and capitalized equivalent method
Deploy sensitivity analysis in financial analysis
Assess the capital budgeting of projects
Undertake different depreciation methods of assets
Perform asset replacement analysis
Take economic decisions under inflation

Requirements
No prior knowledge of construction management is required

Description
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.

Who this course is for
Construction managers,
Civil engineers
Construction engineering students
Business and economics students
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