• To introduce the fundamentals of engineering economics.
• To enable students to perform economic analysis of different projects.
COURSE LEARNING OUTCOMES (CLO)
CLO: 1. to explain the importance of Engineering Economics for Civil Engineers and to perform economic analysis of different Civil Engineering projects.
CLO: 2. to value economic analysis of different Civil Engineering projects.
CLO: 3. to discuss and interpret Civil Engineering related demand and supply in the context of Economics.
CLO: 4. to perform economic analysis in MS Excel for different Civil Engineering projects.
- Fundamentals of Engineering Economics
- Basic concepts and principles of Economics
- Micro-economics theory
- The problems of financial scarcity
- Basic concept of Engineering Economy
- Consumer and Producer goods, Goods and services
- Equilibrium, Elasticity of demand &supply
- Measures of economic worth, Non-monitory values
- Theory of pricing
- Theory of production
- Laws of return
- Capital Financing and Allocation
- Funding, funding agencies and planning commission
- Capital Budgeting, allocation of capital among independent projects
- Financing with debt capital
- Financing with equity capital
- Trading on equity
- Financial leveraging
- Business Organization and Industrial Relationship
- Types of ownership
- Types of stocks, partnership and joint companies
- Banking and Specialized credit institution
- Labour problems, labour organization, prevention and settlement of disputes, Markets, competition and monopoly.
- Linear Programming
- Mathematical statement of linear programming problems
- Graphic solution simplex procedure,
- Duality problem
- Depreciation and Taxes
- Depreciation concept
- Economic life
- Methods of depreciation
- Profit and returns on capital, productivity of capital
- Gain (loss) on the disposal of an asset
- Depreciation as a tax shield
- Selection between Alternatives
- Time value of money and financial rate of return, present value, future value and annuities
- Rate of Return Analysis
- Incremental analysis
- Cost-benefit analysis
- Payback period
- Sensitivity and breakeven analysis,
- Alternatives having different lives, making of buy decisions and replacement decisions