Course Code : HUM123 Version No.: 1.

00 Course Pre-requisites: Nil

Course Title: Engineering Economics

L T P C

Objectives: To introduce engineering economic concepts to the students Expected Outcome: Students should be able to apply the economic concepts in their professional setting. Unit No.1 Basic concepts in economics 9 hrs Basic Engineering Process- Engineering Efficiency and Economic Efficiency. Economic decisions Concepts of value and Utility. Cost Concepts- Breakeven Analysis-Financial Statements. Unit No.2 Time Value of Money 9 hrs Introduction. Cash flows Present Value and Future Value of Cash flows- Simple Interest and Compound Interest. Inflation Inflation Rate Impact of Inflation. - Measurement of Inflation in India. Unit No. 3 Capital Budgeting 9 hrs Calculation of Economic Equivalence Equity and Bond Valuation. Capital Budgeting Process Evaluation of Alternatives Techniques of Evaluation- Benefit- Cost Analysis. Unit No. 4 - Depreciation And Cost of Capital 9 hrs Depreciation Introduction. Basic Depreciation Methods-Depreciation and Taxes in India. Replacement Analysis. Sources Of Capital Cost Of Debt Capital- Cost Of Equity CapitalWeighted Average Cost of Capital. Cost estimation techniques. Unit No 5 - Risk and Uncertainty 9 hrs Decisions under Risk and Uncertainty Risk Measurement- Sensitivity Analysis Expected Value Decision Making- Monte Carlo Analysis Markov chain- Decision Trees in Decision Making. Text Book : 1. William G. Sullivan, James A. Bontadelli, Elin M. Wicks, E.Paul De Garmo, Engineering Economy - Prentice Hall, New Jersy, Eleventh Edition, May 2001. References : 1. G.J. Thuesen, W.J. Fabrycky, Engineering Economy, Prentice Hall of India Private Ltd, Ninth Edition, 2005. 2. Henry Malcolm Steiner, Engineering Economic Principles, The McGraw Hill Co Inc, New Delhi, Second Edition, 2003 3. Chan S. Park, Contemporary Engineering Economics, Prentice Hall of India, 2002. Mode of Evaluation: Recommended by the Board of Studies on: Date of Approval by the Academic Council: Continuous Assessment (Quizzes, CATs, Assignments, etc.) and TEE 30.10.2012 22.11.2012

Proceedings of the 28th Academic Council [22.11.2012]

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