Aiman H. El-Maleh
Office: Building 22, Room
405-7, Phone: 2811
to concepts of economic decision-making from a cash flow view point. It
present worth analysis, cash flow equivalence, rates of return,
replacement analysis, benefit-cost analysis, depreciation and taxes, and
projects break-even point, selection, and sensitivity analysis.
Park, Chan S., Fundamentals of Engineering Economics, 3rdEd., Prentice
This course is about making
decisions. The purpose of this course is to develop tools and
properly analyze and solve the economic problems that are commonly
faced by engineers.
Through using the basic principles,
concepts, and methodology of engineering economics also addresses
the practical concerns of engineers.
To satisfy the very practical needs
of the engineer toward making informed financial decisions when
acting as a team member or project manager for engineering projects.
To incorporate all critical
decision-making tools needed for precise presentation of the effect
of the time value of money on engineering decision making.
The tools include present worth
analysis, annual cash flow, rate of return, incremental analysis,
future worth analysis, and payback period. The course
also covers such topics as depreciation, replacement analysis,
inflation, and deflation.
Course Learning Outcomes
Evaluate the economic feasibility of investments related to
Assess the impact of depreciation, taxation and other economic
factors on projects' feasibility.
Conduct sensitivity analysis on key compounding parameters.
Develop policies for assets replacement.
Assess alternative financing modes.
prudent decisions in everyday life (car/home loans or investments).