1. Economic Decisions Making - Overview, Problems, Role, Decision making process. Engineering Costs and Estimation - Fixed, Variable, Marginal and Average Costs, Sunk Costs, Opportunity Costs, Recurring And Nonrecurring Costs, Incremental Costs, Cash Costs vs Book Costs, Life-Cycle Costs; Types Of Estimate, Estimating Models - Per-Unit Model, Segmenting Model, Cost Indexes, Power-Sizing Model, Improvement and Learning Curve, Benefits. Case Study - Price and Income Elasticity of Demand in the real world. (Chapter - 1) 2. Cash Flow, Interest and Equivalence : Cash Flow - Diagrams, Categories and Computation, Time Value of Money, Debt repayment, Nominal and Effective Interest. (Chapter - 2) 3. Cash Flow & Rate Of Return Analysis - Calculations, Treatment of Salvage Value, Annual Cash Flow Analysis, Analysis Periods; Internal Rate Of Return, Calculating Rate of Return, Incremental Analysis; Best Alternative Choosing An Analysis Method, Future Worth Analysis, Benefit-Cost Ratio Analysis, Sensitivity And Breakeven Analysis. Economic Analysis In The Public Sector - Quantifying And Valuing Benefits & drawbacks. Case Study - Tata Motors. (Chapter - 3) 4. Inflation And Price Change - Definition, Effects, Causes, Price Change with Indexes, Types of Index, Composite vs Commodity Indexes, Use of Price Indexes In Engineering Economic Analysis, Cash Flows that inflate at different Rates. Case Study - Competition in the Advertise Segment in India. (Chapter - 4) 5. Present Worth Analysis : End-Of-Year Convention, Viewpoint Of Economic Analysis Studies, Borrowed Money Viewpoint, Effect Of Inflation and Deflation, Taxes, Economic Criteria, Applying Present Worth Techniques, Multiple Alternatives. (Chapter - 5)
