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Lecture 1 - Introduction To Engineering Economics | PDF
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Lecture 1 - Introduction To Engineering Economics

Engineering Economics applies economic principles to engineering projects, analyzing costs and benefits for informed decision-making. It is crucial for optimizing costs, evaluating project feasibility, and ensuring sustainability. Key concepts include the time value of money, cost analysis, and applications in project selection and design optimization.

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11 views7 pages

Lecture 1 - Introduction To Engineering Economics

Engineering Economics applies economic principles to engineering projects, analyzing costs and benefits for informed decision-making. It is crucial for optimizing costs, evaluating project feasibility, and ensuring sustainability. Key concepts include the time value of money, cost analysis, and applications in project selection and design optimization.

Uploaded by

avadhoot2003
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Introduction to Engineering

Economics
What is Engineering Economics?
• Application of economic principles to
engineering projects.
• Analyzes costs, benefits, and impacts to make
informed decisions.
• Bridges technical expertise and economic
feasibility.
Why is Engineering Economics
Important?
• Enables rational decision-making.
• Optimizes costs in engineering designs.
• Evaluates project feasibility and profitability.
Key Concepts in Engineering
Economics
• Time Value of Money
• Cost Analysis
• Break-Even Analysis
• Benefit-Cost Ratio (BCR)
• Depreciation
• Inflation and Interest Rates
Applications of Engineering
Economics
• Project Selection
• Design Optimization
• Resource Allocation
• Manufacturing and Production
• Infrastructure Development
Importance for Engineers
• Propose financially viable solutions.
• Communicate effectively with stakeholders.
• Contribute to economic development.
• Ensure project sustainability and profitability.
Conclusion
Engineering Economics combines technical and
economic reasoning to ensure the success of
engineering projects. It is vital for engineers to
make informed, sustainable, and economically
sound decisions.

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