END 312 - Engineering Economics

Course Description

Terminology and cash flow diagrams. Interest factors and their use. Nominal and effective interest rates. Continuous compounding. Present worth and capitalized cost analysis. Uniform annual cash flow analysis. Rate of return analysis. Internal and external rates of return. Benefit/cost ratio analysis. Replacement analysis. Inflation-interest relations. Depreciation. Deflation. After-tax economic analysis. Breakeven analysis. Capital budgeting under budget constraints. Sensitivity analysis and decision trees. Statistical evaluation techniques.