How to study Engineering Economics — Semester VII, Pokhara University BECE
What it covers
Economic decision-making for engineering projects: time value of money, cash flow analysis, comparing alternatives, depreciation, break-even analysis, and project evaluation.
Topics worth extra time
- Time value of money and interest formulas
- Comparing alternatives: present worth, annual worth and rate of return
- Benefit–cost analysis
- Depreciation and taxation
- Risk, sensitivity and break-even analysis
How to study it
This is a numerical subject. Learn the interest factors, draw a cash-flow diagram for every problem and solve many variations.
In the exam
Always draw the cash-flow diagram, state the method and show each calculation. Conclude with a clear decision.