Engineering Economics (MTCE1111)

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Engineering Economy,  Leland Blank  and Anthony Tarquin, Latest Edition

Engineering Economy, WG Sullivan, EM Wicks And CP Koelling, 14th Edition

1. To introduce the fundamentals of engineering economics.

2. To enable students to perform economic analysis of different projects.

CLO:1 Understand importance of engineering economics.

CLO:2 Will be able to perform economic analysis of different projects.

• Basic concepts and principles of Economics
• Micro-economics theory
• The problems of financial scarcity
• Basic concept of Engineering Economy
• Consumer and Producer goods, Goods and services
• Price-supply-demand-relationship
• Equilibrium, Elasticity of demand & supply
• Measures of economic worth, Non-monitory values
• Theory of pricing
• Theory of production
• Laws of return

• Funding, funding agencies and planning commission
• Capital Budgeting, allocation of capital among independent projects
• Financing with debt capital
• Financing with equity capital
• Trading on equity
• Financial leveraging

• Types of ownership
• Types of stocks, partnership and joint companies
• Banking and Specialized credit institution
• Labour problems, labour organization, prevention and settlement of disputes, Markets, competition and monopoly

• Mathematical statement of linear programming problems
• Graphic solution simplex procedure
• Duality problem

• Depreciation concept
• Economic life
• Methods of depreciation
• Profit and returns on capital, productivity of capital
• Gain (loss) on the disposal of an asset
• Depreciation as a tax shield

• Time value of money and financial rate of return, present value, future value and annuities
• Rate of Return Analysis
• Incremental analysis
• Cost-benefit analysis
• Payback period
• Sensitivity and breakeven analysis
• Alternatives having different lives, making of buy decisions and replacement decisions