Engineering Economics, Capital Budgeting & Life-Cycle Cost Analysis (LCCA)

Course Description

Empowers engineers across all disciplines with the financial and economic decision-making tools required for capital expenditure proposals. Covers discrete cash flow diagrams, present and future worth factors, annual worth analysis, Internal Rate of Return (IRR), Benefit-Cost (B/C) ratios for public infrastructure, MACRS depreciation schedules, inflation adjustments, and sensitivity analysis.

Learning Objectives

Upon successful completion of this continuing education course, the licensee will be able to:

• Calculate Present Worth (PW), Future Worth (FW), and Uniform Annual Worth (AW) for complex engineering cash flows
• Evaluate mutually exclusive project alternatives using Net Present Value (NPV) and incremental IRR analysis
• Conduct Life-Cycle Cost Analysis (LCCA) balancing initial capital expenditures against operating and maintenance costs
• Calculate Modified Accelerated Cost Recovery System (MACRS) tax depreciation and evaluate after-tax cash flows

Course Syllabus & Curriculum Modules

Course Instructor & Author