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Nov 26, 2024
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ET 3300 - Engineering Economy
Provides knowledge of the economic consequences of engineering decision processes, and methods for evaluation of engineering design alternatives in terms of costs and benefits. Topics include time equivalence of money, annual cost method, present worth method, rate of return method, depreciation, benefit/cost, break-even analysis, income taxes, equipment replacement and risk.
Requisites: Soph or Jr or Sr
Credit Hours: 2
Repeat/Retake Information: May be retaken two times excluding withdrawals, but only last course taken counts.
Lecture/Lab Hours: 2.0 lecture
Grades: Eligible Grades: A-F,WP,WF,WN,FN,AU,I
Course Transferability: TAG course: OES005 Engineering Economics
College Credit Plus: Level 1
Learning Outcomes: - Classify benefits, disbenefits and cost for Benefit/Cost analysis.
- Compare alternatives using Rate-Of-Return (ROR) total and incremental analysis.
- Compare alternatives with same life-cycle, different life-cycles and infinite life using NPW.
- Compute an Internal Rate of Return (IRR) for a set of cash flows.
- Convert arbitrary cash flows into NPW, net future worth, or annual worth values.
- Convert between nominal and effective interest rates.
- Determine an effective interest rate for cash flows with payment periods different from compounding periods.
- Determine unknown years and interest rates for net present worth (NPW) determination.
- Identify complex cash flows with multiple IRR values and select the proper IRR.
- Move arithmetic and geometric gradient cash flows along a time line using a compound interest rate.
- Move single and annualized cash flows along a time line using a compound interest rate.
- Perform sensitivity analysis and break/even analysis of economic project.
- Understand simple and compound interest.
- Utilize spreadsheet software for economic analysis.
- Utilize straight line, and MACRS depreciation techniques.
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