CMET 49400 - Engineering Economics for Construction

Credit Hours: 3.00. Introduction to engineering economy and its methods related to time value of money. Economical evaluation and comparison of alternatives considering costs, returns, interest, taxes, and probability in a time span; determining feasibility, break-even points, and rate of return. Cost indices for construction. Typically offered Spring.
Course Learning Outcomes
1. Understand project alternatives and decision making process (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 2. Show an understanding of the discount rates (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 3. Understand the Weighted Average Cost of Capital (WACC) (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 4. Develop the skills required to set a whole life costing cash flow for a project and calculate the Net Present Worth (NPW) (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 5. Demonstrate proficiency in using Internal Rate of Return (IRR) (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 6. Understand the technique of payback period (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 7. Perform sensitivity analysis (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 8. Show proficiency in developing and incorporating formulas into a decision tree for project selection (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k). 9. Demonstrate an understanding of risk analysis (ETAC: a, b, e, f, h, i, k; ANSAC: a, d, e, f, i, j, and k).

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