014603 – Engineering Economics

Engineering Economics – 014603


Lecture Topics:

  1. The financial value of time.
  2. Interest formulas.
  3. Comparison of alternatives (NPV, AE, NFV, IRR, AIRR, IROR)
  4. Depreciation and financial lifespan of assets and equipment.
  5. Worthwhileness of replacing equipment.
  6. The impact of inflation on comparing alternatives.
  7. The impact of taxation on comparing alternatives.

Topic for self-study:

Supply and demand.

Student Evaluation:

Midterm – 25%:

If the midterm grade is lower than the final exam grade, then the midterm grade will not be taken into account.

Final Exam – 75%:

A grade of 55% at least is required on the exam in order to pass the course.


Reading Requirements:

  • Au, T. and Au, T.P. Engineering Economics for Capital investment Analysis, 1992: N.J., USA, Prentice Hall.
  • White, J. A., Agee, M. H. and Case K. E. Principles of Engineering Economic Analysis, 1998: N.Y. USA, John Wiley & Sons.


Contact Hours per Week

Lecture: 4 hours

Recitation: 2 Hours

Credit points: 3