Balochistan University of Engineering & Technology, Khuzdar
Balochistan University of Engineering & Technology, Khuzdar

Engineering Economics

Specific Objectives of course:

  • To introduce the fundamentals of engineering economics.
  • To enable students to perform economic analysis of different projects.
Course Outline:
Fundamentals of Engineering Economics: Basic concepts and principles of Economics, Micro-economics theory, the problems of financial scarcity, Basic concept of Engineering Economy, Consumer and Producer goods, Goods and services, Price-supply-demand-relationship, Equilibrium,  Elasticity of demand & supply, Measures of economic worth, Non-monitory values, Theory of pricing, Theory of production and laws of return.

Capital Financing and Allocation:   Funding, funding agencies and planning commission, Capital Budgeting, Allocation of capital among independent projects, financing         with debt capital, Financing with equity capital, Trading on equity, Financial leveraging

Business Organization and Industrial Relationship: Types of ownership, types of stocks, partnership and joint companies, Banking and Specialized credit institution; Labour problems, labour organization, prevention and settlement of disputes, Markets, competition and monopoly.

Linear Programming:           Mathematical statement of linear programming problems, Graphic solution Simplex procedure, Duality problem

Depreciation and Taxes: Depreciation concept. Economic life, Methods of depreciation, Profit and returns on capital, productivity of capital, Gain (loss) on the disposal of an asset, depreciation as a tax shield

Selection between Alternatives: Time value of money and financial rate of return, present value, future value and annuities, Rate of Return Analysis, Incremental Analysis, Cost-Benefit Analysis, Payback Period, Sensitivity and Breakeven Analysis, alternatives having different lives, making of buy decisions and replacement decisions.

Recommended Books:

    • Engineering Economics by E.Paul De Garmo
    • Engineering Economics by Leland T. Blank