Evaluating Economic Feasibility of Engineering Projects

Trainer

Associate Professor Dr Zulkipli Ghazali

Category

Soft Skill and Leadership Course Technical Professional Course

Introduction

This course covers the fundamental concept of engineering economics and its principles, methodology and application of the various methods as well as discussions on issues related to the economic evaluations of capital engineering projects.

Engineering solutions do not exist in a vacuum but within the context of business opportunities. Engineering solutions must be physically realizable and economically affordable. Hence, engineers must be concerned with the economic consequences of his/her engineering decisions. This course provides the framework for evaluating the economic aspects of the capital engineering projects.

The course will be highly interactive, with opportunities to advance opinions and ideas through workshop. Learning is encouraged in a supportive environment. To ensure the concepts introduced during the program are understood, the course will be reinforced with a mix of learning methods, including lecture style presentation, open discussion, case studies, group work, and sharing of research findings.

 

Objectives

Upon completion of this course, participants will:

  • Possess a good understanding of engineering economy principles
  • Acquire the skill to model project investment alternatives, techniques of economic analysis, and selection of capital engineering projects
  • Be able to assess the impact of depreciation and taxation on project, project risk and uncertainty, and project economic optimization.
 

Course Content

DAY 1

  • Introduction to Economics Feasibility Analysis and its principles
  • Cost Concepts and Economic Environment – cost terminology, economic environment
  • Money-Time Relationships and Equivalence – equivalence, cash flow, PV, FV and uniform series
  • Workshop 1: case studies and discussion
  • Application of Money-Time Relationships - MARR, Present Worth Method, Future Worth Method, Annual Worth Method, Rate of Return Method, Payback Period Method
  • Economic Analysis of Alternatives – decision making among alternatives
  • Workshop 2: case studies and discussion

DAY 2

  • Depreciation and Income Taxes – depreciation and after-tax economic analysis
  • Replacement Analysis – economic life of defender/challenger
  • Workshop 3: case studies and discussion
  • Dealing with Uncertainty – source of uncertainty and sensitivity analysis
  • Probabilistic Risk Analysis – decision tree analysis
  • Workshop 4: case studies and discussion
  • Course Wrap-up
  • Workshop 5: Sharing of research findings

Download the Course Brochure: BROCHURE - EVALUATING ECONOMIC FEASIBILITY

REGISTRATION IS NOW OPEN
To register, download the CAPE Professional Short Course Registration Form and email the completed form to cape@utp.edu.my.

Our Main Trainer

Introduction This course covers the fundamental concept of engineering economics and its principles, methodology and application of the various methods as well as discussions on issues related to the economic evaluations of capital engineering projects. Engineering solutions do not exist […]

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