BU460 Engineering Economics (3 cr.)

This course focuses on an introduction to investment and replacement analysis along with methods for financing various enterprises including mergers and acquisitions. Topics include cost control, valuation depreciation, replacement theory and taxation.

Upon completion of this course, students are expected to be able to do the following:

1. Analyze cash flow budgets as they relate to engineering economy.
2. Compare engineering alternatives using analytical techniques that include present value and discounted cash flow analysis, incremental analysis, internal rate of return, and break even analysis.
3. Utilize sensitivity analysis to critique and compare project options.
4. Describe capital budgeting and the competition for funds amongst various projects based on a corporate minimum attractive rate of return.
5. Estimate tax consequences of capital and project decisions.
6. Explain the application of expected value, probability analysis and risk analysis in comparing project alternatives.
7. Discuss the non-quantifiable aspects of economic decisions.