Mechanical Engineering

414. Engineering Economy. Interest and time value of money. Depreciation, Income taxes, Present worth method,, Annual worth method. Inflation and deflation. Selection between alternatives, Economic analysis in government. Economic study based on linear programming, CPM and PERT economy. 3 Lectures (3 credits)

Prerequisite: Senior status.

Course Objectives:

The student will be able to:

• Use the techniques of quantitative decision making.

• Solve problems involving  depreciation, income taxes, inflation and deflation.

• Use linear programming in utilization of limited resources.

• Decide between alternate proposals and replacement cases.

Course Syllabus:

Textbook:  

Engineering Economic Analysis, by Donald Newnan et al, 8th ed, (Engineering Press)

Topics:  

1. Interest Formulas

2. Present worth method

3. Annual cash flow analysis

4. Rate of return method

5. Incremental analysis

6. Depreciation

7. Income taxes

8. Replacement studies

9. Inflation and deflation

10. Linear programming

11. CPM and PERT Economy

ABET category content as estimated by faculty member who prepared this course description:

Engineering Science: 3 credits (100%)

Prepared by:  Dr. Nand Jha    Date: March, 2002