To expose students to the concepts of engineering economics and make them able to apply these concepts to make decisions in choosing the best alternative from the available ones.

Only tangible parameters would be covered at length, exposure to non-tangible parameters can be given through expert lectures.

1. 1. Introduction: 
   Basic principles of economic choice management’s responsibility for investment decisions.
   Engineer’s responsibility for investment decisions.
   Conceptual framework of engineering economy.

2. Equivalence:
   Interest & Interest rates, Plans for repayment of borrowed money. Characteristics of repayment plans, compound interest. Equivalence and its significance in economy studies. Present worth, equivalence and interest rates.

3. Financial mathematics:
   Symbols, The –end-of – period conventions. Formulas for single payments. Formulas for uniform series of end – of –period payments.

4. Interest tables:
   Relationship between interest factors and their utilization relative to time. Conversion of single payments at one date to equivalent single payments at another date.
   Finding unknown interest rates.
   Conversation to and from uniform series of payments.
   Geometric gradient series.
   Uses of gradient factors.
   Nominal & effective interest rates.
   Deferred annuities.
   Continuous compounding of interests.
   Problems in personal finance.

5. Judging the attractiveness of proposed investments:
   Equivalent uniform annual cash flow method. Present with method.
   Internal Rate of Return method. Benefit-cost ratio method & Cost- effectiveness.
   Relationship between accounting and engineering economy.
   Income tax consequences of certain decisions, Increment
   Costs, economic sizing and interdependent decisions.

6. Techniques for evaluating alternatives :
   Economy studies for retirement and replacement. Financing effects on economy studies. Capital budgeting & the choice of a maximum attractive rate of return. Prospective inflation and sensibility analysis. Use of mathematics of probability in economy studies.

    1. Principle of Engineering Economy- By Grant Eugene L and others.

Internal 60 %

    (Class assignments/tutorials, Class attendance, Tests, Class interactions, and any laboratory work if required
    etc.)

Final 40 %

    (Exam, Jury, Term Paper etc.)