Lead Faculty: Dr. Shekar Viswanathan
Prerequisite
None
Course Description
This course introduces economic decision making process for engineering projects and capital expenditure proposals. Concepts of time, value of money, cash flow, and capital rationing is covered. Basic comparative models for evaluation alternatives, sensitivity and probability analysis, depreciation and tax consequences, replacement studies, consideration of intangibles are discussed. Economic analysis under conditions of risk and uncertainty with particular emphasis on econometric models applied to engineering systems is analyzed.