[vc_row el_class=”inner-body-content” css=”.vc_custom_1666769215573{padding-top: 30px !important;padding-bottom: 20px !important;}”][vc_column][vc_custom_heading text=”COURSE OBJECTIVES” use_theme_fonts=”yes” css=”.vc_custom_1666769194963{margin-top: 0px !important;}”][vc_column_text]
• To introduce the fundamentals of engineering economics.
• To enable students to perform economic analysis of different projects.[/vc_column_text][vc_custom_heading text=”COURSE LEARNING OUTCOMES (CLO)” font_container=”tag:h3|text_align:left” use_theme_fonts=”yes”][vc_column_text]CLO: 1. to explain the importance of Engineering Economics for Civil Engineers and to perform economic analysis of different Civil Engineering projects.
CLO: 2. to value economic analysis of different Civil Engineering projects.
CLO: 3. to discuss and interpret Civil Engineering related demand and supply in the context of Economics.
CLO: 4. to perform economic analysis in MS Excel for different Civil Engineering projects.
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  1. 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
    • Laws of return
  2. 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
  3. 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.
  4. Linear Programming
    • Mathematical statement of linear programming problems
    • Graphic solution simplex procedure,
    • Duality problem
  5. 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
  6. 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

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