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Introduction

The GE 303 Engineering Economy course, taught by Prof. Rafiq Muhammad Choudhry, aims to equip engineers with the knowledge and tools necessary for making informed financial decisions in their projects. Key topics include the time value of money, discounted cash flow, net present value, and risk analysis. The assessment plan consists of quizzes, midterms, and a final exam, totaling 100% of the course grade.

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2 views

Introduction

The GE 303 Engineering Economy course, taught by Prof. Rafiq Muhammad Choudhry, aims to equip engineers with the knowledge and tools necessary for making informed financial decisions in their projects. Key topics include the time value of money, discounted cash flow, net present value, and risk analysis. The assessment plan consists of quizzes, midterms, and a final exam, totaling 100% of the course grade.

Uploaded by

mu191758
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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GE 303 Engineering Economy

Introduction

Prof. Rafiq Muhammad Choudhry


BSc(Civil-Honor), MSc(CEM), PhD(CEM), Post-Doctorate (CEM)
PE, M.PEC, F.IEP, M.ASCE, Email: [email protected]
Professor of Construction Engineering and Management (CE&M)
Civil Engineering Department (CE), College of Engineering (COE)
Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh
Kingdom of Saudi Arabia
Introduction
1. Science
2. Technology
3. Engineering
4. Engineering Economy
Introduction
Before starting the course, it must be clear the
purpose of your presence here!
Why are you here?

Possible answers:
❑To complete graduation, this course is compulsory
❑To learn how economy works in engineering
Economy
❑ is an area of the production,
distribution and trade, as well as
consumption of goods and services.

Why is Economy Important?


Determines employment rates and job opportunities.
Influences prices of goods and services.
Affects investment and business growth.
Impacts people’s standard of living.
Purpose of GE 303 Engineering
Economy course

❑To equip engineers with the tools and


knowledge to make informed financial
and economic decisions in their
projects and careers.
GE303 Engineering Economy

❑ Apply economic principles to


engineering projects for rational
decision-making
❑ Study cash flows
❑ Model
❑ Take help from Online materials
FIGURE 1.1: Logical steps to follow in
a car-financing decision.
FIGURE 1.5: How a successful
engineering project affects a firm’s market
value.
Chapter 1. Engineering Economic
Decisions
1️⃣ Time Value of Money (TVM) – Understanding how money's value
changes over time.

2️⃣ Discounted Cash Flow (DCF) – Evaluating future cash flows by


discounting them to present value.

3️⃣Net Present Value (NPV) – Determining the profitability of a project


by discounting future earnings.

4️⃣Cost-Benefit Analysis – Comparing costs and benefits to


determine the best option.

5️⃣ Internal Rate of Return (IRR) – The interest rate at which NPV
becomes zero; used for investment evaluation.
Chapter 1. Engineering Economic
Decisions
6️⃣ Payback Period – The time required to recover an investment.

7️⃣ Depreciation – The reduction in an asset's value over time.

8️⃣ Risk Analysis – Assessing potential uncertainties in economic


decisions.

9️⃣ Break-Even Analysis – Finding the point where revenue equals


costs, meaning no profit or loss.

Capital Budgeting – The process of deciding where to invest


funds for long-term projects.
Fundamentals of Engineering Economics
Fourth Edition

Chapter 1
Engineering
Economic
Decisions

Copyright © 2019, 2013, 2008, 2004 Pearson Education, Inc., All Rights Reserved
Tentative Assessment Plan
Assessment Method:
Assessment Type Nos. Tentative Schedule Weightage %
Quiz 1 Week 4 – Date (Wednesday 9 April 2025) 5
Quiz 2 Week 8 – Date (Wednesday 7 May 2025) 5
HW / Assignments 1 Throughout the semester 0
Midterm 1 Week-5 - Date (Wednesday 16 April 2025) 25
Midterm 2 Week-9 - Date (Wednesday 14 May 2025) 25
At the End of the Semester as per the University Final Exam
Final Exam 1 40%
Schedule (Mon, 16 Jun 2025 from 19:00 to 21:00 hours)
Total = Coursework (60) + Final Exam (40) = 100
Thank You

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