2nd BOS (Fall 2018 – Onwards)

Engineering Economics
S Subject Semester Code Credit Hours Contact Hours
8.1 Engineering Economics 8th ECON-105 2-0 32

Course Learning Outcome:

Upon successful completion of the course, student will be able to:

S# CLO, Course Learning Outcome Domain Level PLO

Understand the basic knowledge of cost and taxation

1. Cognitive C2 1
concepts

Develop the cash flow diagrams based on the time value of

2. Cognitive C3 2
money

Calculate Internal Rate of Return (IRR) and Incremental

3. Cognitive C4 2
Analysis

Calculate Depreciation using unit of production, Straight line

4. Cognitive C4 2
method, Depletion

Solve economics problems involving comparison and

5. selection of alternatives by using variety of analytical and Cognitive C3 5
computational techniques.

Course Content:
1. Basic Concepts and Tools
2. Time Value of Money (TVM)
3. Compounding and Discounting Methods
4. Cash Flow Analysis
5. Single Payment Cash Flow Analysis
6. Uniform Series Cash Flow Analysis
7. Arithmetic Gradient and Geometric
8. Gradient Series
9. Capital Budgeting Techniques/Comparison methods Part-I
10. Capital Budgeting Techniques/Comparison methods part-II
11. Internal Rate of Return (IRR) and Incremental Analysis
12. Replacement Analysis
13. Depreciation
14. Inflation and its effects on Cash Flows
15. Income Taxes
16. Risk and Sensitivity Analysis

Assessment:
Quizzes Assignments Mid Term Final Term
25% 25% 50%

Recommended Books:
1. Fundamentals of Engineering Economics by David L. Whitman, Ronald E. Terry. (2012)
2. Engineering Economy by W. G Sullivan, E. M. Wicks, C. Patrick. (15th)
3. Engineering Economy by Leland Blank, Anthony Tarquin. (7th)
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Department of Mechanical Engineering, BUITEMS Quetta