Chapter 1

Introduction to Engineering Economy

1. Principles of Engineering Economy (Not a video, a power point presentation in the course website)

Chapter 3

Cost-Estimation Techniques

1. Cost Index and Price Index

2. Power Sizing

3. Learning Curve

4. Regression

5. Simple Linear Regression

   1. Real-world Example 1  

   2. Real-world Example 2

Chapter 4

Time Value of Money

1. Bascis

   1. Simple and Compound Interest

   2. Cash Flow Diagram/Table

   3. Calculating Present/Future Value/Worth, Payment, Rate, & Number of Period

   4. Nominal and Effective Rate

   5. Annual Percentage Rate or APR

   6. The Most Useful and Practical Technique

   7. Uniform Arithmetic Gradient Series Cash Flow

   8. Geometric Sequences of Cash Flow

2. Application

   1. Home Loan Amortization Schedule

   2. Retirement Investment: Monthly Payment, Present/Future Value, Interest Rate, & Inflation

Chapter 5

Evaluating a Single Project

1. Basics

   1. Hurdle Rate or Minimum Attractive Rate of Return (MARR)

   2. Present Worth/Value

   3. Future Worth/Value

   4. Annual Worth/Value | Capital Recovery

   5. Internal Rate of Return (IRR)

   6. Simple Payback Period

   7. Discounted Payback Period

   8. Simple vs. Discounted Payback Period

2. Practical Real World Examples

1. Bond Value/Yield/Investment Calculations

2. Bond Value/Yield/Investment Calculations 2nd Example

3. Infinite Analysis Period

   1. Capitalized Cost

   2. Capital Recovery

4. Investment Analysis

5. Double the Investment

6. Investing in Solar Panels

7. Retail Store Investment Analysis

Chapter 6

Comparison and Selection among Projects

1. Equal Useful Lives

   1. Using Formulas

   2. Using Cashflow Table

   3. Internal Rate of Return IRR

   4. Payback Period

2. Unequal Useful Lives

   1. Repeatability Assumption

   2. Co-termination Assumption

3. Practical Real World Examples

   1. Auto Financing

   2. Home Financing

   3. Home Refinancing

Chapter 7

Depreciation and Income Taxes

1. Basics/Classical/Historical Depreciation Methods

   1. Straight-Line (SL) Method

   2. Declining-Balance (DB) Switches Over to Straight-Line (SL) Method

2. Modified Accelerated Cost Recovery System (MACRS) Step-by-Step Guideline

   1. MACRS Introduction Step 1 & 2  

   2. MACRS Calculation Step #3

   3. MACRS Calculation Step #4

   4. MACRS Calculation Step #5

3. Modified Accelerated Cost Recovery System (MACRS)Examples

   1. MACRS GDS & ADS Example

4. After-Tax Cashflow ATCF Analysis

   1. Single Project

   2. Multiple Projects

5. IRS Documents/Tables (IRS Updated Year 2021)

   1. https://www.irs.gov/publications/p946 

   2. https://www.irs.gov/pub/irs-pdf/p946.pdf  

(Must use the latest IRS publications for any depreciation/tax calculation)   

Reference

1. General

   1. Sullivan, W. G., Wicks, E. M., & Koelling, C. P. Engineering Economy.

   2. Newnan, D. G., Eschenbach, T. G., Lavelle, J. P., & Lewis, N. A. Engineering economic analysis.

2. Module 7: Depreciation and Income Taxes

   1. https://www.irs.gov/publications/p946

   2. https://www.irs.gov/pub/irs-pdf/p946.pdf