Engineering Economics for Construction

Catalog description

Introduction to engineering economy and its methods related to time value of money. Economical evaluation and comparison of alternatives considering costs, returns, interest, taxes, and probability in a time span; determining feasibility, break-even points, and rate of return. Cost indices for construction. Typically offered Spring. Course Learning Outcomes 1. Understand project alternatives and decision making process (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 2. Show an understanding of the discount rates (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 3. Understand the Weighted Average Cost of Capital (WACC) (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 4. Develop the skills required to set a whole life costing cash flow for a project and calculate the Net Present Worth (NPW) (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 5. Demonstrate proficiency in using Internal Rate of Return (IRR) (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 6. Understand the technique of payback period (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 7. Perform sensitivity analysis (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 8. Show proficiency in developing and incorporating formulas into a decision tree for project selection (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 9. Demonstrate an understanding of risk analysis (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). View Class Schedule