Engineering Economics Analysis (Part 2 of 2)

Feasibility Study, Project Appraisal, Project Valuation, Economic Investment Decision-Making

As mentioned in part (1), this course is all about decision making from an economic perspective for any investment (whether on the personal or the corporate level). As a reminder, the following topics were covered in part (1):

What you’ll learn

  • How to perform sensitivity analysis.
  • How to perform break-even analysis.
  • How to consider more than one investment simultaneously under a limited budget.
  • How to determine the depreciation and book value of an asset using different depreciation methods.
  • How to consider taxes in your analysis.
  • How to determine the economic service life of an asset and when to replace such asset.
  • How to conduct an economic analysis for public projects.
  • Understand the firm’s capital sources and structure.
  • How to determine the cost of capital.
  • How to determine an investment’s MARR.

Course Content

  • SECTION (1): INTRODUCTION –> 3 lectures • 17min.
  • SECTION (2): SUPPLEMENTARY ANALYSIS –> 5 lectures • 57min.
  • SECTION (3): CAPITAL BUDGETING –> 4 lectures • 50min.
  • SECTION (4): DEPRECIATION –> 12 lectures • 1hr 45min.
  • SECTION (5): TAXATION –> 8 lectures • 1hr 6min.
  • SECTION (6): REPLACEMENT ANALYSIS –> 8 lectures • 1hr 42min.
  • SECTION (7): ECONOMIC ANALYSIS IN PUBLIC SECTOR –> 7 lectures • 1hr 1min.
  • SECTION (8): MARR SELECTION –> 9 lectures • 1hr 30min.

Engineering Economics Analysis (Part 2 of 2)

Requirements

As mentioned in part (1), this course is all about decision making from an economic perspective for any investment (whether on the personal or the corporate level). As a reminder, the following topics were covered in part (1):

– Time Value of Money

– Economic Equivalence

– Nominal and Effective Interest Rates

– Commercial Loans (Amortized loans, Add-On loans, and Customized loans)

– Inflation

– Measuring Worth of Investments

– Comparison of Investments

 

The topics covered in part (1) are considered as the basics or foundations of engineering economic analysis. In part (2) we will dive more in some other advanced interesting topics. Such as performing supplementary analysis after the main analysis to investigate different scenarios in our assumptions. Also, we will understand how to consider taxes in our analysis and how it can affect our decision making. We will also discuss how to evaluate a project economically for public projects and its difference between the private sector’s evaluations. Moreover we will know how to determine your Minimum Attractive Rate of Return (MARR) and many others. Accordingly, the main topics to be covered in part (2) will be as follows (see the course contents for more details):

– Supplementary Analysis

– Capital Budgeting

– Depreciation

– Taxation

– Replacement Analysis

– Economic Analysis in Public Sector

– MARR Selection

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