Summer Session

EST 392: Engineering Economics

Undergraduate 3 credits

Prerequisites: MAT 127 or 132 or AMS 161; TSM, CIV, or MEC major Advisory Prerequisites: EST 391; EST 393

DEC: F SBC: SBS

This course has a systems analysis approach to problems of planning and design in manufacturing and technical sectors of industry, using principles of cash flow equivalencies. It covers aspects of engineering alternatives through financial concepts including time value of money, annual cost, present worth, incremental rate of return and cost-benefit analysis, analysis of various types of cash flows, development of rate of return, benefit-to-cost ratios, depreciation and the effects of investment tax assessment. Capital allocation theory is used to evaluate competing investment programs.