CMGT 357. Engineering Economics. 3 Hours.

Analysis of design alternatives and investment opportunities based on the time value of money. Topics include financial statements and accounting concepts related to economic analysis, time value of money and cash flow equivalence, cost of capital and minimum attractive rate of return (MARR), defining mutually exclusive alternatives, developing alternative after-tax cash flows, performing investment and replacement studies, and methods for addressing uncertainty and risk. Prerequisite: MATH 122 or MATH 126, or consent of the instructor. LEC.