Prerequisite(s): MATH 2123/2153. Development and use of time value of money models. Bases for comparison of alternatives, including present worth, annual worth, rate of return and payout period methods. Decision-making among independent, dependent, capital-constrained and unequal-life projects. Replacement, breakeven and minimum cost analyses. Depreciation and depletion methods and their effect on corporate income taxes, leading to after-tax cash flow analysis. Introduction to financial reports. Quantitative evaluation of investment alternatives for non-engineering majors. The role of interest in economic equivalence and in formulating economic comparisons based on present worth, annual equivalent, rate of return and payout criteria. Accounting, depreciation and income tax considerations. Benefit-cost and cost-effectiveness analysis. Cost estimation and allowance for variance in estimates. Not available for credit in industrial engineering curriculum.
Instructor:  Dr. Camille DeYong
Dates: June 8 - July 31
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Syllabus
 

Principles of Engineering Economic Analysis, 5th Ed. White, John A. 
       ISBN:  978-0470113967
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