IND 2700 - Engineering Economics

• Comprehend the basis of trade and money in a business context
• Contrast the effects of changing supply and demand on prices and costs
• Understand the roles of profit, cash, and cost in decision-making related to engineering projects
• Apply a debit and credit based financial accounting system to basic business transactions
• Represent complex, multi-payment transactions graphically using cash-flow diagrams
• Calculate the changing value of money over time
• Evaluate the worth of the costs and incomes of projects and investments
• Apply discounted cash-flow analysis to evaluate proposed capital investments
• Use basic calculus to solve economic allocation optimization problems
• Determine the effect of changing interest, inflation rates, and project risk on business decisions
• Allocate overhead in manufacturing, service, and other engineering-oriented projects
• Relate the specific roles that depreciation, inventory valuation, and time offsetting play in engineering related business operations
• Recognize the ethical and legal issues related to financial analysis

• Limits and series

• Micro-economic theory of supply and demand
• Financial terminology and monetary systems
• Accounting systems used in engineering work
• Inflationary and deflationary environments
• Interest rates and discount rates for monetary return
• Present value and future value within the time value of money
• Nominal and effective interest rates
• Arithmetic annuities
• Geometric annuities
• Mortgages and other debt structures
• Annual worth and permanent worth
• Benefit/cost calculations
• Breakeven analysis
• Economic decision making and optimization
• Sensitivity analysis
• Reverse annuities
• Depreciation and depletion methods
• Tax systems and their effect on engineering decision-making
• After-tax cash-flow analysis