Engineering Economy
ENGINEERING ECONOMY
Presented By
Dr. Ali Ahsan
My Introduction Your Introduction
Name GPA Where do you wish to see your self after 10 years?
The course design The benefits of the course The course outline Teaching method and requirement from students Yahoo group Photocopier Books Course Material Assignments Quiz Class Participation Presentation Exams Stationery Requirements Calculators Reading Lecture timings
Chapter 1
Why Engineering Economy is important to Engineers (and other professionals)
Engineering Economy
Why is Engineering Economy important? Practical everyday questions
Should you finance your car or pay cash? Finance for $6995 –vs- pay $4000 in cash. At what interest rate would you have to invest the $4000 so either option is equivalent.
Buying a new car: should you take 0% financing for the next 4 years, or a $2000 cash rebate.
Engineering Economy
Why is Engineering Economy important?
Purchasing rental property: I just offered committed to purchase a house near campus for $70,000 with 20% down. What are my month P&I payments if interest rates are 6.25% for a 30 year loan or 5.875% for a 15 year loan. What would I pay over the lifetime of each of these mortgages?
Engineering Economy
Why is Engineering Economy important? As an Engineer
Engineers tend to work on projects. Projects use capital (money) to improve a process, develop a new product, improve a product , improve the safety of a process, etc… Engineers are typically responsible for “writing the project” which determines the cost of the project and the return on investment.
Engineering Economy
Why is Engineering Economy important? As an Engineer
When doing a project study, Engineers compare and contrast alternative options for accomplishing the goals of a project. These alternative are often compared from an economic standpoint. Lease –vs- Buy. Payback period. Rate of Return. Return on Investment.
Few Important Concepts
Management ????? Inflation Income
Presented By
Dr. Ali Ahsan
My Introduction Your Introduction
Name GPA Where do you wish to see your self after 10 years?
The course design The benefits of the course The course outline Teaching method and requirement from students Yahoo group Photocopier Books Course Material Assignments Quiz Class Participation Presentation Exams Stationery Requirements Calculators Reading Lecture timings
Chapter 1
Why Engineering Economy is important to Engineers (and other professionals)
Engineering Economy
Why is Engineering Economy important? Practical everyday questions
Should you finance your car or pay cash? Finance for $6995 –vs- pay $4000 in cash. At what interest rate would you have to invest the $4000 so either option is equivalent.
Buying a new car: should you take 0% financing for the next 4 years, or a $2000 cash rebate.
Engineering Economy
Why is Engineering Economy important?
Purchasing rental property: I just offered committed to purchase a house near campus for $70,000 with 20% down. What are my month P&I payments if interest rates are 6.25% for a 30 year loan or 5.875% for a 15 year loan. What would I pay over the lifetime of each of these mortgages?
Engineering Economy
Why is Engineering Economy important? As an Engineer
Engineers tend to work on projects. Projects use capital (money) to improve a process, develop a new product, improve a product , improve the safety of a process, etc… Engineers are typically responsible for “writing the project” which determines the cost of the project and the return on investment.
Engineering Economy
Why is Engineering Economy important? As an Engineer
When doing a project study, Engineers compare and contrast alternative options for accomplishing the goals of a project. These alternative are often compared from an economic standpoint. Lease –vs- Buy. Payback period. Rate of Return. Return on Investment.
Few Important Concepts
Management ????? Inflation Income