Introduction to Engineering Economics

Flashcards for key terms and concepts from the lecture on Engineering Economics.

Engineering Economics

The application of economic techniques to the evaluation of design and engineering alternatives.

Project Management

The process of planning, executing, and closing work to achieve specific goals and meet specific success criteria.

Capital Expenditure

Funds used by an organization to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Time Value of Money

The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

Ethics in Engineering Economics

The moral principles that govern the decision-making process in engineering practices.

Cost Reduction Decisions

Decisions focused on reducing expenses while maintaining or improving quality and performance.

Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Benefit Cost Ratio

A ratio that compares the benefits of a project or decision against its costs, used to assess the economic viability.

Internal Rate of Return

The discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Acquisition Costs

Expenses incurred in the process of obtaining or purchasing assets.

Stakeholder Environment

The surrounding community of interests and individuals that are affected by or have an influence on a project.

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Resource Allocation

The process of distributing available resources among various projects or business units.

Engineering Planning

The process of devising a strategy for the execution of engineering projects, including considerations of constraints.

Engineering Management

Directing and overseeing engineering-related projects, ensuring alignment with organizational goals.

Graduate Certificate

A credential awarded for completing a post-baccalaureate course of study, usually involving a focused area of study.