11-CS-1- Engineering Economics (Recorded)

Engineering Economics/ 11-CS-1

Engineering Economics refers to the application of economic principles in the analysis of alternatives in engineering practice. Topics include theoretical and conceptual financial project analysis; types and applications of engineering economic decisions; capital, cash flow, and the time value of money concepts; nominal and effective interest rates when considering loans, mortgages, and bonds; the application of present worth analysis, annual equivalent analysis and rate of return analysis in evaluating independent projects; analyzing lease vs. buy alternatives and making decisions; after-tax financial analysis requires understanding of capital cost allowance (depreciation) and corporate income tax; understanding methods of financing and capital budgeting; break-even, sensitivity and risk analyses.

Textbooks (most recent edition is recommended):

• Primary Text
• Fraser, Niall; Jewkes, Elizabeth; Pirnia, Mehrdad; Schmitt, Ketra. Engineering Economics: Financial Decision Making for Engineers, Canadian Edition, Pearson Education Canada.
• Secondary Text:
• Newnan, Donald G.; Jones, John; Whittaker, John; Eschenbach, Ted G.; Lavelle, Jerome P. Engineering Economic Analysis, Oxford University Press.
• French Text:
• Park, Chan S. Analyse Economique en Ingenierie, Editions du Renouveau Pedagogique.
• Web Resources:
• Keywords: engineering economics, cost engineering, financial analysis
• Organizations: International Cost Engineering Council, Association of Cost Engineers, Association for the Advancement of Cost Engineering

WHAT YOU'LL LEARN

• Apply up-to-date concepts and methods of engineering economics in a Canadian setting.
• Compare engineering projects and choose the one with the best prospects for success.
• Calculate time-value equivalence, normal and effective interest rate, cash flows and other metrics.
• Analyze financial statements, effect of inflation and leasing alternatives.
• dentify and manage uncertainty and risk.