Engineering Economics

Basic concepts of engineering economics through understanding of the 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, comparing mutually exclusive projects, analyzing lease vs. buy alternatives and making decisions. After-tax financial analysis requiring an understanding of capital cost allowance (depreciation) and corporate income tax. Understanding methods of financing and capital budgeting. Break-even, sensitivity and risk analyses

Suggested Reading Materials

Principles of Engineering Economics Analysis. Canadian edition
Sonyi, Andrew; Fenton, Robert and White, John. Wall & Emerson Inc., 2000.