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ISEN 302 Economic Analysis of Engineering Projects

The main goal of this ISEN 302 Economic Analysis of Engineering Projects course is to understand and be able to use technical analysis and comparison of engineering projects (or any type of investment) in the time value of money concepts.

Economics involves the use and application of economic principles in the analysis of engineering decisions. As a discipline, it focuses on a branch of economics called microeconomics, as it studies the behaviour of individuals and companies in making decisions about the allocation of scarce resources. It is pragmatic and combines economic theory with engineering practice. However, it is also a simplified application of microeconomic theory as it avoids many microeconomic concepts such as pricing, competition, and supply/demand. However, as a subject, it is closely related to other subjects (such as statistics, mathematics, and cost accounting). It is based on the logical structure of economics but adds analytical capabilities in mathematics and statistics. Engineers look for solutions to problems, and the economic feasibility of each potential solution is usually considered along with the technical aspects. Economic outcomes when alternative methods are available to achieve an intended goal.

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