PYY 504E - Managerial Economics for Construction

Course Objectives

-Learn about the basic concepts of managerial economics
-To be informed about the economic decision making techniques and their applications in construction management

Course Description

Introduction: Some economic & Cost concepts; Classifications of Cost, Interest & interest rate, The time value of money, Discounting, Calculations of Economic Equivalence, Inflation and investment decisions , Economic Evaluation of Building Investement; Methods Ignoring Uncertainty and Risk; Life-Cycle Cost, Net Present Value, Internal Rate of Return; Depreciation, Replacement Analysis, Methods for treating risk; Probability Concepts&Theory; Methods Treating Risk: Expected Value, Decision Trees,; Monte Carlo Analysis, Sensitivity Analysis, Risk Attitude, Methods For Treating Uncertainty; Pay Off Matrix, Laplace Rule, Maximin & Maximax Rules, Hurwics Rule