This course prepares cadets to consider the economic dimension in the evaluation of engineering alternatives; a consideration vital to the Systems Decision Process, engineering management, systems acquisition and many other application areas. While emphasis is on the analytical consideration of money and its impact on the areas above, the course also incorporates professional ethics in the engineering economic analysis process. The course is taught in four lesson blocks. The Time Value of Money (TVM) block -includes the quantitative methods for economic analysis of engineering alternatives by introducing cost concepts, interest concepts, the cash flow diagram and developing interest formulas. The Analysis Methods block develops techniques for project evaluation and comparison and ways to account for risk and uncertainty. The After Tax Cash Flow block incorporates the real-world effect of taxes, depreciation and inflation into the analysis methods. The Capital Budgeting block completes a comprehensive introduction to engineering economy by introducing the concept of economic service life and project financing. A one lesson introduction to personal finance is included to demonstrate how many of the concepts used in the business world can also be applied for personal planning. Course concepts are applied using Excel in both graded and ungraded labs. Cadets will spend several lessons in a computer lab environment.
