Six Ways to Perform Economic Evaluation of Projects

This course discusses the money issues. The objective is that while engineers find it necessary to learn the basic accounting and business principles to communicate with accountants; few accountants are willing to learn the engineering details. The basic cost evaluation techniques presented in the course shall help engineers to 'think like MBAs and act like engineers'. Installed costs and capital offsets are important economic parameters for evaluation of proposed investment. The concept of money having a time value is fundamental to understanding any economic or financial analysis. This 3 -hour course provides basic fundamentals of cost evaluating that could be applied to any new, retrofitting, expansion and modification projects. The course is intended for use primarily to the managers, engineers, architects, scientists, auditors, campaigners, academics, equipment manufacturers and designers. The course includes a multiple-choice quiz consisting of fifteen (15) questions at the end. Learning Objective At the conclusion of this course, the student will: Understand the 6 fundamental methods of cost analysis: Payback Method Return on Investment (ROI) Total life cycle cost (present value method) Savings/investment ratio (benefit/cost ration method) Net present Value (NPV) Internal rate of return (IRR) Be aware of commonly-used financial terminology and concepts Be able to judge and select the right project alternative