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547 Engineering Economics

The document outlines an engineering economics course that covers topics like present worth comparisons, equivalent annual worth comparisons, rate of return calculations, depreciation, cost estimation, financial statements, ratio analysis, and financial and profit planning. It is a 4-hour per week course over one semester totaling 52 hours, with 25 marks for internal assessment and a 3-hour final exam worth 100 marks. The course is divided into 8 units that cover these essential engineering economic and financial analysis concepts.

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Amit Kishor
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1K views6 pages

547 Engineering Economics

The document outlines an engineering economics course that covers topics like present worth comparisons, equivalent annual worth comparisons, rate of return calculations, depreciation, cost estimation, financial statements, ratio analysis, and financial and profit planning. It is a 4-hour per week course over one semester totaling 52 hours, with 25 marks for internal assessment and a 3-hour final exam worth 100 marks. The course is divided into 8 units that cover these essential engineering economic and financial analysis concepts.

Uploaded by

Amit Kishor
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

ENGINEERING ECONOMICS

Written by Administrator
Sunday, 01 November 2009 10:47 -

Subject Code

06ME56

IA Marks

25

No. of Lecture Hrs./ Week

04

Exam Hours

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ENGINEERING ECONOMICS

Written by Administrator
Sunday, 01 November 2009 10:47 -

03

Total No. of Lecture Hrs.

52

Exam Marks

100

PART - A

Unit - 1

Introduction: Engineering Decision-Makers, Engineering and Economics, Problem solving


and Decision making, Intuition and Analysis, Tactics and Strategy. Engineering Economic
Decision, Maze. Law of demand and supply, Law of returns, Interest and Interest factors:
Interest rate, Simple interest, Compound interest, Cash - flow diagrams, Personal loans and
EMI Payment, Exercises and Discussion.

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ENGINEERING ECONOMICS

Written by Administrator
Sunday, 01 November 2009 10:47 -

8 Hours

Unit - 2

Present-Worth Comparisons: Conditions for present worth comparisons, Basic Present


worth comparisons, Present-worth equivalence, Net Present-worth, Assets with unequal lives,
infinite lives, Future-worth comparison, Pay-back comparison, Exercises, Discussions and
problems.

6 Hours

Unit - 3

Equivalent Annual-Worth Comparisons: Equivalent Annual-Worth Comparison methods,


Situations for Equivalent Annual-Worth Comparisons, Consideration of asset life, Comparison
of assets with equal and unequal lives, Use of shrinking fund method, Annuity contract for
guaranteed income, Exercises, Problems.

6 Hours

Unit - 4

Rate-of-Return Calculations and Depreciation: Rate of return, Minimum acceptable rate of


return, IRR, IRR misconceptions, Cost of capital concepts. Causes of Depreciation, Basic
methods of computing depreciation charges, Tax concepts, corporate income tax.

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ENGINEERING ECONOMICS

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Sunday, 01 November 2009 10:47 -

6 Hours

PART - B

Unit - 5

Estimating and Costing: Components of costs such as Direct Material Costs, Direct Labor
Costs, Fixed Over-Heads, Factory cost, Administrative Over-Heads, First cost, Marginal cost,
Selling price, Estimation for simple components.                          

5 Hours

Unit - 6

Introduction, Scope of finance, Finance functions: Statements of Financial Information:


Introduction, Source of financial information, Financial statements, Balance sheet, Profit and
Loss account, relation between Balance sheet and Profit and Loss account. Simple Numericals
            

8 Hours

Unit - 7

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ENGINEERING ECONOMICS

Written by Administrator
Sunday, 01 November 2009 10:47 -

Financial Ratio Analysis: Introduction, Nature of ratio analysis, Liquidity ratios, Leverage
ratios, Activity ratios, Profitability ratios, Evaluation of a firm's earning power. Comparative
statements analysis. Simple numericals

6 Hours

Unit - 8

Financial and Profit Planning: Introduction, Financial planning, Profit planning, Objectives of
profit planning, Essentials of profit planning, Budget administration, type of budgets,
preparation of budgets, advantages, problems and dangers of budgeting. Introduction to Bench
Marking of Manufacturing Operation.

7 Hours

TEXT BOOKS:

1.       Engineering Economy, Riggs J.L., , McGraw Hill, 2002

2.       Engineering Economy, Thuesen H.G. PHI , 2002

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ENGINEERING ECONOMICS

Written by Administrator
Sunday, 01 November 2009 10:47 -

REFERENCE BOOKS:

1. Engineering Economy, Tarachand, 2000.


2. Industrial Engineering and Management, OP Khanna, Dhanpat Rai & Sons.
2000
3. Financial Mangement, Prasanna Chandra, TMH, 2004
4. Finacial Management, IM PANDEY, Vikas Publisahing House, 2002

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