Course Catalogue

LJMU Partner Taught

This module introduces and develops a comprehensive understanding of the principles of economic evaluation of decision alternatives in engineering applications.

Outline Syllabus:Foundations of Engineering Economy (The Role of Engineering Economy in the Decision Making Process, Cash Flows, Interest Rates, Minimum Attractive Rate of Return). Economic Equivalence (Single-Amount Factors, Uniform Series Present Worth Factor and Capital Recovery Factor, Sinking Fund Factor and Uniform Series Compound Amount Factor, Arithmetic Gradient Factors and Geometric Gradient Series Factors, Combining Factors, Nominal and Effective Interest Rates, Nominal and Effective Interest Rates Conversion, Relationships Between Payment Period and Compounding Period). Basic Analysis Tools (Present Worth Analysis, Future Worth Analysis, Annual Worth Analysis, Rate of Return Analysis, Benefit/Cost Analysis). Breakeven and Payback Analysis (Breakeven Analysis, Payback Analysis). Effects of Inflation (Understanding the Impact of Inflation, Present Worth Calculations Adjusted for Inflation, Future Worth Calculations Adjusted for Inflation). Depreciation and Taxation (Methods of depreciation, Income Taxes, After-Tax Economic Analysis). Risk and Uncertainty (Interpretation of Certainty, Risk and Uncertainty, Decision Making Under Risk, Decision Making Under Uncertainty).