Engineering economics is concerned with the problem of investment decision making or capital expenditure analysis. An "investment" problem involves making a decision to allocate financial resources to acquire productive assets that will generate cash flows in future time periods. Engineering economics seeks to develop and apply a logically consistent methodology for evaluating investment projects. Discounted cash flow methods are used in analyzing such projects. In this course we will assume certain cash flows and ignore taxation implications. After developing the mathematics of cash flow equivalence, absolute and relative measures of project worth will be developed and applied to individual and multiple projects. The emphasis will be on private project decisions, but similar methods will be applied to public sector projects.
Engineering economics is concerned with the problem of investment decision making or capital expenditure analysis. An "investment" problem involves making a decision to allocate financial resources to acquire productive assets that will generate cash flows in future time periods. Engineering economics seeks to develop and apply a logically consistent methodology for evaluating investment projects. Discounted cash flow methods are used in analyzing such projects. In this course we will assume certain cash flows and ignore taxation implications. After developing the mathematics of cash flow equivalence, absolute and relative measures of project worth will be developed and applied to individual and multiple projects. The emphasis will be on private project decisions, but similar methods will be applied to public sector projects.
