MMAE 713, Engineering Economic Analysis
This course is currently scheduled for September 6, 8, 13, and 15, 2001, on the Main Campus at IIT. It is also available in a not-for-credit version for those more interested in the information provided than in pursuing a degree. Give me a call or an email.
Description:
This course presents the basic elements of engineering economic analysis (also known as "micro-economics") needed for Cost Benefit Analyses and understanding of the mathematics of economic issues, from an engineering viewpoint. Topics include equivalence and compound interest, present worth analysis, rate of return analysis, breakeven analysis, depreciation and depletion, replacement analysis, and inflation and deflation.
Prerequisites:
One semester of calculus or equivalent is handy, but not essential.
Outline:
Day One:
· Decision Making
· Cash Flow Tables
· Equivalence
· Compound Interest
· Nominal vs. Effective Interest Rates
· Cash Flow Diagrams
· Present Worth, Future Worth, Recurring Worth
Day Two:
· Gradient Cash Flows
· Rate of Return Analysis
· Incremental Analysis
· Payback Period Analysis
· Sensitivity Analysis
Day Three:
· Depreciation
· Depletion
· Effects of Income Taxes on Cash Flows
Day Four:
· Inflation and Deflation
· Replacement Analysis
· Estimation Methods
· Capital Budgeting
For Further Information:
contact John Cesarone, cesarone@iit.edu, 312.567.5813.
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