Course Title:

Applied Engineering Economic Analysis

Instructor:

To Be Assigned

Course Description:

The basic premise for any investment is to maximize the return on the investment. Today more than ever in the ever increasingly global competitive environment  the engineer and managers are constantly put under tremendous pressure to deliver quality products or services at competitive prices. To deliver the products or services requires capital investment. Capital in the form of money invested to pay people, purchase machinery, and materials, is an economic necessity in all engineering and business projects. Those who design projects and make the managerial decisions as to whether they should be undertaken and how they should be operated are always concerned that the available capital be used efficiently.

In a capitalist economy the success of engineering and business projects is usually measured in financial efficiency. In many cases no project can achieve financial efficiency without taking into consideration the social issues. This course addresses financial investment and its efficiency when measuring the successful return on the investment. The course provides various engineering economic tools that are useful to make economic decisions by examining the timing of the investment flow.  In addition the course provides participants with analysis tools that select from competing projects to insure maximum return on investment. Finally the course presents depreciation methods and their impact on taxes. 

 

 

 

 

 

 

Course Objectives:

At the end of this course, participants will be able to:

1. Apply break-even concepts to solve problems

2. Explain time value of money, interest rate, equivalence, and nominal and effective rates

3. Apply present, future, annual, and gradient cash flow series analysis tools

4. Apply rate of return, payback, and selection from competing alternative tools

5. Explain the effect of depreciation on taxes 

 

Main Topics to Be Covered:

Decision making process

* Time value of money, interest types, and equivalence

* Break Even Analysis

* Engineering economic formulas

* Present, Future, Annual, Rate of Return, Payback, and incremental analysis

* Depreciation, salvage values, and depreciation's impact on taxes

 

 

Intended Audience:

This course is useful for those who are concerned with maximizing the return on their monetary capital asset. This course will also serve as refresher for the FE/EIT exam

Method of Delivery:

Instructor led lectures, discussions, and exercises

Course Duration:

Half Day (overview), One Day (essentials), Two Days (complete course)

 

Prerequisites:

Basic Algebra

Computer Requirements:

None

 

 

 

 

Enrollment Size:

Minimum #:

8

Maximum #:

12

Course Content:

Applied:

80%

Theoretical:

20%