Cost analysis is an important aspect in the engineering decision making process. The course provides participants with the knowledge to seek solutions to engineering problems from a financial perspective. Participants learn to develop cash flow diagrams and work with discount factors, depreciation, tax considerations, annual maintenance cost and inflation to determine break-even analysis, rate of return and evaluate best alternatives.

TOPICS

• Cash Flow Diagrams
• Choice Between Alternatives
• Income Tax
• Depreciation
  • Straight Line Method
  • Double Declining Balance Method
  • Sum of the Year’s Digits Method
• Rate and Period Changes
• Probabilistic Scenarios
• Break Even Analysis
• Direct Reduction Loans