Engineering Economics
Civil Engineering
Engineering Economy Fundamentals and Cash-Flow Diagrams
Foundations of engineering economic decision-making, cash-flow modeling, equivalence, opportunity cost, MARR, and cost classification.
Interest, Equivalence, and Compound Growth
Time value of money, simple and compound interest, single-payment factors, focal dates, and economic equivalence.
Annuities and Gradients
Uniform series, annuities due, deferred series, perpetuities, arithmetic gradients, geometric gradients, and mixed cash-flow decomposition.
Nominal and Effective Interest Rates
Nominal quotations, periodic and effective rates, equivalent-rate conversions, continuous compounding, and continuous cash-flow distinctions.
Present Worth Analysis
Net present worth, cost alternatives, salvage, capitalized cost, bond valuation, and unequal-life cautions.
Future Worth and Annual Worth Analysis
Equivalent future worth, annual worth, capital recovery, salvage recovery, and unequal-life alternative comparison.
Rate of Return Analysis
Internal rate of return as an NPV root, multiple-root cautions, modified rate measures, and incremental ROR for mutually exclusive alternatives.
Inflation in Engineering Economic Analysis
Real and market rates, constant-value and then-current cash flows, Fisher relation, general and specific escalation, deflation, and purchasing-power consistency.
Depreciation
Asset basis, book value, salvage, straight-line, declining-balance, sum-of-years-digits, and the role of depreciation in after-tax analysis.
Replacement Analysis
Defender-challenger decisions, current market value, sunk cost, equivalent annual cost, economic life, and marginal replacement logic.
Benefit-Cost and Payback Analysis
Public-project benefit-cost ratios, incremental comparison, simple and discounted payback, and limitations of screening metrics.
Break-Even and Sensitivity Analysis
Operating break-even, contribution margin, parameter sensitivity, scenarios, thresholds, and decision robustness.
After-Tax Economic Analysis
Taxable income, depreciation tax effects, after-tax operating cash flow, terminal sale, book value, after-tax NPV, and tax-neutral modeling discipline.
Capital Budgeting
Project screening, NPV maximization, mutually exclusive choices, profitability index, capital rationing, portfolio selection, and governance.