ECE192: Engineering Economics and Impact on Society
People say this class is really BS. It really is.
Engineering Economics is the body of knowledge that allows engineers to determine which of several project alternatives is economically best.
Chapter 1: Economic Analysis and Cost Estimation
- Recognize the problem
- Define the goal or objective
- Assemble relevant data
- Identify feasible alternatives
- Select the criterion to determine the best alternative
- Construct a model
- Predict the outcomes or consequences for each alternative
- Choose the best alternative
- Audit the results
Chapter 2: Time value of Money and Compounding
Chapter 3: Compound Interest Factors + Depreciation
Chapter 4: Comparison Methods - Present and Future Worth Analysis
- The present worth method compares projects by looking at the present worth of all cash flows associated with the projects
- The future worth analysis compares projects by looking at the future worth of all cash flows associated with the projects
- The annual worth method is similar, but converts all cash flows to a uniform series that is an annuity
- The payback period method estimates how long it takes to pay back investments
- Internal rate of return (IRR) method.
- Other methods: the benefit cost method; the sensitivity method; the break even method.