Engineering Economics Analysis (Part 2 Of 2)

Feasibility Study, Project Appraisal, Project Valuation, Economic Investment Decision-Making

What you’ll learn
How to perform sensitivity analysis
How to perform break-even analysis
How to consider more than one investment simultaneously under a limited budget
How to determine the depreciation and book value of an asset using different depreciation methods
How to consider taxes in your analysis
How to determine the economic service life of an asset and when to replace such asset
How to conduct an economic analysis for public projects
Understand the firm’s capital sources and structure
How to determine the cost of capital
How to determine an investment’s MARR
Requirements
Basics in mathematics
Engineering Economic Analysis (Part 1 of 2)
Description
As mentioned in part (1), this course is all about decision making from an economic perspective for any investment (whether on the personal or the corporate level). As a reminder, the following topics were covered in part (1):- Time Value of Money- Economic Equivalence- Nominal and Effective Interest Rates- Commercial Loans (Amortized loans, Add-On loans, and Customized loans)- Inflation- Measuring Worth of Investments- Comparison of InvestmentsThe topics covered in part (1) are considered as the basics or foundations of engineering economic analysis. In part (2) we will dive more in some other advanced interesting topics. Such as performing supplementary analysis after the main analysis to investigate different scenarios in our assumptions. Also, we will understand how to consider taxes in our analysis and how it can affect our decision making. We will also discuss how to evaluate a project economically for public projects and its difference between the private sector’s evaluations. Moreover we will know how to determine your Minimum Attractive Rate of Return (MARR) and many others. Accordingly, the main topics to be covered in part (2) will be as follows (see the course contents for more details):- Supplementary Analysis- Capital Budgeting- Depreciation- Taxation- Replacement Analysis- Economic Analysis in Public Sector- MARR Selection

Overview

Section 1: SECTION (1): INTRODUCTION

Lecture 1 Lec. (1.1) Welcome / Part (1) Summary

Lecture 2 Lec. (1.2) Topics to be Covered in Part (2)

Lecture 3 Lec. (1.3) Course Management Recommendations

Section 2: SECTION (2): SUPPLEMENTARY ANALYSIS

Lecture 4 Economic Equivalence Interest Tables

Lecture 5 Examples on Section 2

Lecture 6 Lec. (2.1) What is Supplementary Analysis?

Lecture 7 Lec. (2.2) Sensitivity Analysis

Lecture 8 Lec. (2.3) Break-Even Analysis

Section 3: SECTION (3): CAPITAL BUDGETING

Lecture 9 Examples on Section 3

Lecture 10 Lec. (3.1) What is Capital Budgeting?

Lecture 11 Lec. (3.2) Enumeration Method

Lecture 12 Lec. (3.3) Mathematical Programming Method Overview

Section 4: SECTION (4): DEPRECIATION

Lecture 13 Examples on Section 4

Lecture 14 Lec. (4.1) What is Depreciation?

Lecture 15 Lec. (4.2) Asset Depreciation Aspects

Lecture 16 Lec. (4.3) Book and Tax Depreciation Methods

Lecture 17 Lec. (4.4) Straight Line Method

Lecture 18 Lec. (4.5) Units-Of-Production Method

Lecture 19 Lec. (4.6) Sum-Of-Years’-Digits Method

Lecture 20 Lec. (4.7) Declining Balance Method

Lecture 21 Lec. (4.8) Double Declining Balance Method

Lecture 22 Lec. (4.9) Book Depreciation Methods Comparison

Lecture 23 Lec. (4.10) Which Book Depreciation Method to use?

Lecture 24 Lec. (4.11) Capital Cost Allowance Tax Depreciation Method

Section 5: SECTION (5): TAXATION

Lecture 25 Examples on Section 5

Lecture 26 Lec. (5.1) What is Taxation?

Lecture 27 Lec. (5.2) Taxable Income, Tax Rates, and Income Tax

Lecture 28 Lec. (5.3) Net Income VS Net Cash Flow

Lecture 29 Lec. (5.4) Disposal Tax Effect

Lecture 30 Lec. (5.5) After Tax Cash Flow (ATCF) Analysis

Lecture 31 Lec. (5.6) ATCF Considering Depreciation

Lecture 32 Lec. (5.7) ATCF Considering Depreciation + Bank Loan

Section 6: SECTION (6): REPLACEMENT ANALYSIS

Lecture 33 Examples on Section 6

Lecture 34 Lec. (6.1) What is Replacement Analysis?

Lecture 35 Lec. (6.2) Basic Concepts and Terminologies

Lecture 36 Lec. (6.3) Comparing Defender and Challenger

Lecture 37 Lec. (6.4) Economic Service Life

Lecture 38 Lec. (6.5) Optimal Replacement Time (ORT)

Lecture 39 Lec. (6.5A) ORT with Infinite Planning Horizon

Lecture 40 Lec. (6.5B) ORT with Finite Planning Horizon

Section 7: SECTION (7): ECONOMIC ANALYSIS IN PUBLIC SECTOR

Lecture 41 Examples on Section 7

Lecture 42 Lec. (7.1) What is Economic Analysis in Public Sector?

Lecture 43 Lec. (7.2) Benefit-Cost Analysis

Lecture 44 Lec. (7.3) Identifying Benefits and Costs

Lecture 45 Lec. (7.4) Quantifying Benefits and Costs

Lecture 46 Lec. (7.5) Benefit-Cost Ratio

Lecture 47 Lec. (7.6) Incremental Benefit-Cost Ratio

Section 8: SECTION (8): MARR SELECTION

Lecture 48 Examples on Section 8

Lecture 49 Lec. (8.1) Basis of MARR Selection

Lecture 50 Lec. (8.2A) MARR Based on Capital Cost (Sources of Capital)

Lecture 51 Lec. (8.2B) MARR Based on Capital Cost (Capital Structure)

Lecture 52 Lec. (8.2C) MARR Based on Capital Cost (Cost of Capital)

Lecture 53 Lec. (8.2D) MARR Based on Capital Cost (Implementation)

Lecture 54 Lec. (8.3) MARR Based on Opportunity Cost

Lecture 55 Lec. (8.4) MARR Selection

Lecture 56 Lec. (8.5) MARR in Public Sector

Project managers,Investors,Engineers (any discipline),Potential Engineers in USA or Canada acquiring their “Professional Engineering” registration,Engineering students (any discipline),Business or Economics students