Teaching Scheme (in Hours)
| Theory |
Tutorial |
Practical |
Total |
| 3 |
0 |
0 |
3 |
Subject Credit : 3
Examination Scheme (in Marks)
Theory
ESE (E)
|
Theory
PA (M)
|
Practical
ESE Viva (V)
|
Practical
PA (I)
|
Total
|
| 70 |
30 |
0 |
0 |
100 |
Syllabus Content
Unit-1: Economic Decisions Making
Overview, Problems, Role, Decision making process.
Unit-2: Engineering Costs & Estimation
Fixed, Variable, Marginal & Average Costs, Sunk Costs, Opportunity Costs, Recurring And Nonrecurring Costs, Incremental Costs, Cash Costs vs Book Costs, Life-Cycle Costs; Types Of Estimate, Estimating Models - Per-Unit Model, Segmenting Model, Cost Indexes, Power-Sizing Model, Improvement & Learning Curve, Benefits. Case Study - Price and Income Elasticity of Demand in the real world
Unit-3: Cash Flow, Interest and Equivalence
Cash Flow – Diagrams, Categories & Computation, Time Value of Money, Debt repayment, Nominal & Effective Interest.
Unit-4: Cash Flow & Rate Of Return Analysis
Calculations, Treatment of Salvage Value, Annual Cash Flow Analysis, Analysis Periods; Internal Rate Of Return, Calculating Rate of Return, Incremental Analysis; Best Alternative Choosing An Analysis Method, Future Worth Analysis, Benefit-Cost Ratio Analysis, Sensitivity And Breakeven Analysis. Economic Analysis In The Public Sector - Quantifying And Valuing Benefits & drawbacks. Case Study – Tata Motors
Unit-5: Inflation And Price Change
Definition, Effects, Causes, Price Change with Indexes, Types of Index, Composite vs Commodity Indexes, Use of Price Indexes In Engineering Economic Analysis, Cash Flows that inflate at different Rates. Case Study – Competition in the Advertise Segment in India
Unit-6: Present Worth Analysis
End-Of-Year Convention, Viewpoint Of Economic Analysis Studies, Borrowed Money Viewpoint, Effect Of Inflation & Deflation, Taxes, Economic Criteria, Applying Present Worth Techniques, Multiple Alternatives.
Course Outcome
- Describe the principles of economics that govern the operation of any organization under diverse market conditions
- Comprehend macroeconomic principles and decision making in diverse business set up
- Explain the Inflation & Price Change as well as Present Worth Analysis
- Apply the principles of economics through various case studies
