Engineering Economics I

Introduction to Engineering Economics. Marginal analysis of resource allocation in the production system. Value of inputs, concept of productivity. Cost of resource production and production costing. Value of outputs. Break-even analysis. Utility theory. Economic evaluation of activity. Investment evaluation problems. Cash flow discounting. Investment evaluation criteria. Comparative economic evaluation. The Investment Plan: Basic concepts and definitions. Stages of investment plan preparation. Individual sections of an Investment Plan. Preparation, planning, and evaluation of investment plans. Balance sheet analysis, financial ratios.