Engineering Economics

[enwar3]

If so, what is the difference? I can't tell with the course description they give in the university bulletin.

 

[Martin]

If your Engineering Econ is like mine, then it has little in common with regular economics. Mine had a lot to do with time value of money and how to accurately assess the cost/benefit of various projects.

 

[rockyct]

Originally posted by: Martin
If your Engineering Econ is like mine, then it has little in common with regular economics. Mine had a lot to do with time value of money and how to accurately assess the cost/benefit of various projects.

Yeah, I took an Engineering Econ class and it basically teaches how to compare investments or projects.

 

[enwar3]

Here's what the bulletin says:

Fundamentals of economic analysis. Interest rates, present value, and internal rate of return. Applications to personal and corporate financial decisions. Mortgage evaluation, insurance decision, hedging/risk reduction, project selection, capital budgeting, and investment valuation. Decisions under uncertainty and utility theory.

I'm interested in just basic econ or personal finance issues.. think this could be useful? (For the record, I think it could, but if it ends up like all your Engr Econs, then maybe it's not beneficial for my purposes)

 

[PowerEngineer]

Engineering economics is all about the time value of money. Present worth (and/or future worth) of various patterns of capital investments, operating costs, cost reductions, etc. as a way to help identify the most economically sound approach to solving a problem.

I've heard it said that if you are out to solve a problem regardless of cost then you are a scientist. You are an engineer if you must solve the same problem at the lowest possible cost.



There's a kernal of truth in that.

 

[axelfox]

Is this in the Engineering Dept? Sounds just like my Finance class.

 

[Tiamat]

Engineering economics is more like depreciation and assets of equipment, costs in running a plant, starting your own manufacturing plant (and expected costs), factoring labor into your designs. Basically, designing with people and capital in mind.

You may also go over how to present a design to venture capitalists if you have a seminar portion of the class.

 

[enwar3]

Originally posted by: axelfox
Is this in the Engineering Dept? Sounds just like my Finance class.

Yea it's in the engineering department. I figured it was just econ, but more practical (like trying to solve a problem in an economic context using engineering problem-solving principles)

 

[FleshLight]

It's just econ but instead of "should generic company make 12 widgets?", you have "should hensel phelps engineering purchase 200 tons of gravel?"

It's mostly plug and chug with all the present value, future value, benefit-cost analysis, etc. Useless stuff IMHO unless you're going into project management.