Engineering Economy (إقتصاد هندسي)

This course consists of fundamentals of engineering economy, the basic principles of the time value of money, drawing the cash-flow diagrams different interest rates i.e., simple, compound, MARR, ROR, nominal and effective, comparing economic alternatives based on equivalent present worth (PW), future worth (FW), annual worth (AW), Using of depreciation methods related to machines/projects and Performing replacement and breakeven, Performing calculations according to both nominal and effective interest rate.

By the end of this course, the learner will be able to:

• Understand Fundamentals of Engineering Economics.

• Understand the Time Value of Money.

• Understand Importance of Engineering Economics Study.

• Understand The Role Engineering Economic in decision making.

• How to draw and read Cash Flow Diagrams (CFD).

• Understand interest rate (IR), Rate Of Return (ROR) Return on Investment (ROI).

• Differentiate between simple and compound interest amounts.

• Understand The meaning of the present, future, and annual flows.

• Derive the relationships between the present, future, and annual flows.

• Calculate factors.

• Extract factors from tables.

• Use single amounts factors - compound amount (F/P) and present worth (P/F) factor.

• Use uniform series factors - present worth (P/A) and capital recovery (A/P) factors.

• Use uniform series factors - compound amount (F/A) and sinking fund (A/F) factors.

• Use arithmetic gradients factors - compound (P/G) and uniform annual series (A/G) factors.

• Calculate (F/G) and (G/F) factors.

• Understand the relations between factors.

• Perform Present Worth Analysis PW.

• Perform Future Worth Analysis FW.

• Perform Annual Worth Analysis AW.

• Study investment opportunities.

• Compare between investment opportunities with the same lives.

• Compare between investment opportunities with different lives.

• Performing replacement studies for a specified study period.

• Performing replacement studies for unspecified study period.

• Calculate depreciation using Straight Line Method.

• Calculate depreciation using Activity Method.

• Calculate depreciation using Some of the Years Digits Method.

• Calculate Costs.

• Calculate Profits.

• Calculate fair Taxes.

• Perform breakeven analysis.

• Calculate fixed costs.

• Calculate the variable costs.

• Calculate total revenue.

• Calculate the Break-Even Quantity.

• Differentiate between nominal and Effective interest rate.

• Determine the payment period (PP) and compounding period (CP) for equivalence computations.

• Determine the effective interest rate for any stated time period.

• Determine the payment period (PP) and compounding period (CP).

• Calculate the effective interest rate.

• Calculate the equivalence value when PP ≥ CP

• Calculate the equivalence value when CP ≥ PP

• Calculate the equivalence value when PP = CP.