CT-324                                                            Engineering Economics                                          2 (2+0)

Introduction

Engineering economics, previously known as engineering economy, is a subset of economics concerned with the use and application of economic principles in the analysis of engineering decisions. As a discipline, it is focused. on the branch of economics known as microeconomics in that it studies the behavior of individuals and firms in making decisions regarding the allocation of limited. Resources Thus, it focuses on the decision making process, its context and environment. It is pragmatic by nature, integrating economic theory with engineering practice. But it is also a simplified application of microeconomic theory in that it avoids a number of microeconomic concepts such as price determination, competition and demand/supply. As a discipline though, it is closely related to others such as statistics, mathematics and cost accounting. It draws upon the logical framework of economics but adds to that the analytical power of mathematics and statistics. This course also enables students enable students to perform economic analysis of different projects.

 Objectives

1. To Understand Value and Cost Concepts

2. To Acquire the Knowledge and Skills Related to the Application of Time Value for Money

3. To Acquire the Knowledge and Skills Related to the Application of Costing, Financing and Risk

4. To Acquire the Knowledge and Skills Related to the Application of Depreciation, Obsolescence and Replacement Factors

Recommended Texts:

1. Chan, S. Park. (2012). Fundamentals of Engineering Economics. New Jersey: Pearson Education
2. DeGarmo, E. P. Sullivan, G. W. & Bontadelli, A. J. (1979). Engineering Economy. New York: Macmillan Publishing Company

Suggested. Readings

1. John; Agee H. M. & Case, E. K. (1984). Principles of Engineering Economic Analysis.  Hoboken, New Jersey  John Wiley & Sons White