Introduction to Economics Flow in an economy, Law of supply and demand, Fixed, Variable, Marginal & Average Costs, Sunk Costs, Opportunity Costs, Recurring and Nonrecurring Costs, Incremental Costs, Cash Costs vs Book Costs, Concept of Engineering Economics - Engineering efficiency, Economic efficiency, Scope of engineering economics - Element of costs, Marginal cost, Marginal Revenue, Sunk cost, Opportunity cost, Process planning. (Chapter - 1) 2. Cash Flow Methods of comparison of alternatives - present worth method (Revenue dominated cash flow diagram), Future worth method (Revenue dominated cash flow diagram, cost dominated cash flow diagram), Annual equivalent method (Revenue dominated cash flow diagram, cost dominated cash flow diagram), rate of return method, Benefit - Cost Ratio Analysis, Sensitivity and Break-even analysis - V ratio, Examples in all the methods. (Chapter - 2) 3. Inflation And Price Change Definition, Effects, Causes, Price Change with Indexes, Types of indexes, Composite vs Commodity Indexes, Use of Price Indexes in Engineering Economic Analysis, Cash Flows that inflate at different Rates. Case Study. (Chapter - 3) 4. Worth Analysis End-Of-Year Convention, Viewpoint of Economic Analysis Studies, Borrowed Money Viewpoint, Effect of Inflation & Deflation, Taxes, Economic Criteria, Applying Present Worth Techniques, Multiple Alternatives, Future Worth Analysis. (Chapter - 4) 5. Replacement and Maintenance analysis Types of maintenance, types of replacement problem, determination of economic life of an asset, Replacement of an asset with a new asset - capital recovery with return and concept of challenger and defender, Simple probabilistic model for items which fail completely. (Chapter - 5) 6. Depreciation Introduction, Straight line method of depreciation, declining balance method of depreciation-Sum of years digits method of depreciation, sinking fund method of depreciation / Annuity method of depreciation. (Chapter - 6) 7. Corporate Social Responsibility (CSR) & Environmental, Social and Governance (ESG) - meaning, importance, business ethics, ESG factors, measurement criteria. (Chapter - 7)
