Unit 1 Introduction to Engineering Economics

3 lecture hours

• Concepts of Macro and Micro Economics
• Types of goods
• Concept of economic and non- economic activities
• Time Value of Money
• Interest Calculations
• Simple and Compound Interest
• Cash Flows: Estimation and Diagramming

Unit 2 Introduction to Factors and Their Use

6 lecture hours

• Single Payment Factors (F/P and P/F)
• Uniform Series Present Worth Factor and Capital Recovery Factor (P/A and A/P)
• sinking Fund Factor and Uniform Series Compound Amount Factor (A/F and F/A)
• Standard Factor Notation and Use of Interest Tables
• Present Worth
• Future Worth and Equivalent Uniform annual Worth Calculations
• Calculations of Unknown Interest Rates and Unknown Years

Unit 3 Present Worth and Capitalized Cost Evaluation

3 lecture hours

• Present Worth Comparison of Equal and Different Life Alternatives
• Life Cycle Cost
• Capitalized Cost Calculations

Unit 4 Rate of Return

2 lecture hours

• Calculations Using PW and AW Equations

Unit 5 Benefit/Cost Analysis

4 lecture hours

• Classification of Benefits
• Costs and Disbenefits
• Calculations for a Single Project
• Alternative Selection by B/C Analysis

Unit 6 Laws of Demand& Supply

3 lecture hours

• Law of Demand
• Demand Function
• Types of Demand
• Determinants of Demands
• Demand Elasticity
• Methods of Demand Forecasting
• Law of Supply

Unit 7 Factors of Production

• Production Function
• Factors of Production
• Division of Labour
• Localization of Industry
• Capital and Capital formation
• Scales of Production
• Production Analysis – Long & Short Run, 03 Subject Code: 3724609 w.e.f