Ο3: Engineering Economics

Lecturer: D. Panagiotakopoulos
Academic Credits: 0.

Description:
The decision-making process. Basic concepts: economic activity, limits of production capabilities, decreasing marginal return, scale return. Concepts of resource and activity cost (maarginal, average, short-term, opportunity, etc). Time value of money and discounting. Critical review of economic appraisal methods. Cost/Benefit Analysis from different viewpoints. Significance of updating factor and time horizon for the analysis. Minimum cost and minimum risk selection. Equipment replacement analyses. Dead point analyses. Consideration of inflation and taxation.