Engineering Economics

1 Course Unit

Engineering economics provides a systematic framework for evaluating the economic aspects of competing design or project alternatives. Topics include: cost-driven design economics, break-even analysis, money-time relationships and equivalent worth, rates of return, cost estimation, pricing strategy, depreciation and taxes, inflation, global currency exchange rates, life cycle analysis, benefit/cost ratio analysis, replacement analysis, dealing with uncertainty, probabilistic risk analysis, real options analysis, capital financing and cost of capital, and financial statement analysis. Case studies apply these topics to real-world problems. Fall 1 Course Unit