Course Objectives:

• Basic cost concept
• Distinguish between the types of cost behaviors
• Explain the relationship of types of costs
• Calculate the relevant costs in business
• Identify and give examples of variable costs and fixed costs
• Define and give examples of cost classifications; differential costs, opportunity costs.
• Identify the time value of money.
• Compare two or more alternatives.
• Define Useful Age of Machines.
• Do a complete financial study of a project (Yearly Report)
• Perform a feasibility study of a project.

Course outlines:

• Definition – Engineering Economy.
• Why Engineering Economy is Important to Engineers?
• Finance and Financial Decision
• Cost Analysis
• How Time and Interest Affect Money? Time Value of Money.
• Combining Factors
• Present Worth Analysis
• Annual Worth Analysis
• Rate of Return Analysis
•  Replacement Analysis
• Mutually Exclusive Alternatives
• Depreciation Models
•  Cost Control for Engineers
•  Sensitivity Analysis – Uncertainty Analysis

Who Can Benefit?

• Financial and Engineers those who need cost planning and control

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