Financial analysis, cost estimation, and economic decision-making for engineering projects.
Course overview
MECH 2730 Engineering Economics introduces the financial principles that guide engineering decisions. You will learn how to evaluate the economic viability of projects, compare alternatives, and estimate costs accurately. The course covers time value of money, depreciation, taxes, and risk analysis in a practical engineering context.
Through case studies and real-world examples, you will develop the skills to make data-driven financial recommendations. This course is an elective for students in the Mechanical Engineering Technology program.
Who takes this course
This course is available as an elective to students in the Mechanical Engineering Technology program.
Credits: 3 · Hours: 45
Prerequisites
None
Learning outcomes
- Calculate present worth, future worth, and annual equivalent values for engineering alternatives.
- Estimate project costs including materials, labour, and overhead using standard industry methods.
- Compare mutually exclusive projects using net present value and internal rate of return.
- Apply depreciation and tax concepts to engineering cash flow analysis.
- Recommend optimal solutions based on economic criteria and risk assessment.
Evaluation
| Component | Weight (%) |
| Midterm examination | 30 |
| Term project (cost estimation report) | 30 |
| Final examination | 40 |