EGN 4611 - Engineering Economics

Credits: 3

Prerequisites: Permission from Department Chair
Course Description: The objective is to help engineering students recognize and understand the importance of cost factors that are inherent in all engineering decisions. Development of ability to handle engineering problems that involve economic factors. The course includes economic environment, selections in present economy, value analysis, critical path economy, interest and money-time relationships, depreciation and valuation, capital financing and budgeting, basic methods for undertaking economic studies, risk, uncertainty and sensitivity, selections between alternatives, fixed, increment, and sunk costs, the effects of income taxes in economic studies, replacement studies, minimum cost formulas, economic studies of public projects, economic studies in public utilities. Effects of inflation are considered at each step.