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    EECA Syllabus

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    This document outlines the objectives and content of the course MG2451 Engineering Economics and Cost Analysis. The course aims to teach students the basics of economics and cost analysis to make economically sound decisions in engineering. It is divided into 5 units that cover topics such as the law of supply and demand, cost analysis, value engineering, cash flow methods to compare alternatives, replacement and maintenance analysis, and methods of depreciation. The course totals 45 periods and references several textbooks on engineering economics, managerial economics, and economic analysis.

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    EECA Syllabus

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    baranidharan .k
    121 views2 pages
    This document outlines the objectives and content of the course MG2451 Engineering Economics and Cost Analysis. The course aims to teach students the basics of economics and cost analysis to make economically sound decisions in engineering. It is divided into 5 units that cover topics such as the law of supply and demand, cost analysis, value engineering, cash flow methods to compare alternatives, replacement and maintenance analysis, and methods of depreciation. The course totals 45 periods and references several textbooks on engineering economics, managerial economics, and economic analysis.

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    MECHANICAL FINAL YEAR PAPER

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    EECA syllabus

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    This document outlines the objectives and content of the course MG2451 Engineering Economics and Cost Analysis. The course aims to teach students the basics of economics and cost analysis to make economically sound decisions in engineering. It is divided into 5 units that cover topics such as the law of supply and demand, cost analysis, value engineering, cash flow methods to compare alternatives, replacement and maintenance analysis, and methods of depreciation. The course totals 45 periods and references several textbooks on engineering economics, managerial economics, and economic analysis.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    121 views2 pages

    EECA Syllabus

    Uploaded by

    baranidharan .k
    This document outlines the objectives and content of the course MG2451 Engineering Economics and Cost Analysis. The course aims to teach students the basics of economics and cost analysis to make economically sound decisions in engineering. It is divided into 5 units that cover topics such as the law of supply and demand, cost analysis, value engineering, cash flow methods to compare alternatives, replacement and maintenance analysis, and methods of depreciation. The course totals 45 periods and references several textbooks on engineering economics, managerial economics, and economic analysis.

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    MG2451 ENGINEERING ECONOMICS AND COST ANALYSIS

    LTPC 3003

    OBJECTIVES:
    To learn about the basics of economics and cost analysis related to engineering so as to take
    economically sound decisions.
    UNIT I

    INTRODUCTION TO ECONOMICS

    Introduction to Economics- Flow in an economy, Law of supply and demand, Concept of


    Engineering Economics Engineering efficiency, Economic efficiency, Scope of engineering
    economics- Element of costs, Marginal cost, Marginal Revenue, Sunk cost, Opportunity cost,
    Break-even analysis- V ratio, Elementary economic Analysis Material selection for product
    Design selection for a product, Process planning.
    UNIT II

    VALUE ENGINEERING

    10

    Make or buy decision, Value engineering Function, aims, Value engineering procedure.
    Interest formulae and their applications Time value of money, Single payment compound
    amount factor, Single payment present worth factor, Equal payment series sinking fund factor,
    Equal payment series payment Present worth factor- equal payment series capital recovery
    factor-Uniform gradient series annual equivalent factor, Effective interest rate, Examples in all
    the methods.
    UNIT III

    CASH FLOW

    Methods of comparison of alternatives present worth method (Revenue dominated cash flow
    diagram), Future worth method (Revenue dominated cash flow diagram, cost dominated cash
    flow diagram), Annual equivalent method (Revenue dominated cash flow diagram, cost
    dominated cash flow diagram), rate of return method, Examples in all the methods.
    UNIT IV

    REPLACEMENT AND MAINTENANCE ANALYSIS

    Replacement and Maintenance analysis Types of maintenance, types of replacement problem,


    determination of economic life of an asset, Replacement of an asset with a new asset capital
    recovery with return and concept of challenger and defender, Simple probabilistic model for
    items which fail completely.
    UNIT V

    DEPRECIATION

    Depreciation- Introduction, Straight line method of depreciation, declining balance method of


    depreciation-Sum of the years digits method of depreciation, sinking fund method of
    depreciation/ Annuity method of depreciation, service output method of depreciation-Evaluation
    of public alternatives- introduction, Examples, Inflation adjusted decisions procedure to adjust
    inflation, Examples on comparison of alternatives and determination of economic life of asset.

    TOTAL: 45 PERIODS
    TEXT BOOKS:
    1. Panneer Selvam, R, Engineering Economics, Prentice Hall of India Ltd, New Delhi, 2001.
    2. Suma Damodaran, Managerial economics, Oxford university press 2006.73
    REFERENCES:
    1. Chan S.Park, Contemporary Engineering Economics, Prentice Hall of India, 2002.
    2. Donald.G. Newman, Jerome.P.Lavelle, Engineering Economics and analysis Engg. Press,
    Texas, 2002
    3. Degarmo, E.P., Sullivan, W.G and Canada, J.R, Engineering Economy, Macmillan, New
    York, 1984
    4. Grant.E.L., Ireson.W.G., and Leavenworth, R.S, Principles of Engineering Economy,
    Ronald Press, New York,1976.
    5. Smith, G.W., Engineering Economy, Lowa State Press, Iowa, 1973.
    6. Truett & Truett, Managerial economics- Analysis, problems & cases Wiley India 8th
    edition 2004.
    7. Luke M Froeb / Brian T Mccann, Managerail Economics A problem solving
    approach Thomson learning 2007.

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