Engineering Economics notes

4 chapter notes, in syllabus order. Each starts with the key points.

Unit 1

Engineering Economics: Definitions, Scope & ImportanceUnit 1 of Engineering Economics introduces the core concepts, principles, and applications of economic analysis in engineering projects, covering definitions, scope, objectives, and the role of engineers in financial decision-making.12 min read

Unit 2

Interest and Time Value of Money · note coming

Unit 3

Cash Flow Diagrams: Definitions, Types, and ApplicationsUnit 3 of Engineering Economics introduces cash flow diagrams as a visual tool to represent financial transactions over time, distinguishing between inflows and outflows, and their role in engineering decision-making.10 min read

Unit 4

Present Worth Analysis · note coming

Unit 5

Annual Worth Analysis · note coming

Unit 6

Rate of Return Analysis · note coming

Unit 7

Benefit-Cost Analysis: Methods, Applications & Decision-MakingUnit 7 of Engineering Economics explores Benefit-Cost Analysis (BCA), covering its definition, key methods (Benefit-Cost Ratio, Net Present Value, Internal Rate of Return), real-world applications in infrastructure and policy, and how to compare projects using BCA. Includes worked examples, advantages, limitations, and7 min read

Unit 8

Depreciation · note coming

Unit 9

Break-Even and Sensitivity Analysis · note coming

Unit 10

Taxation, Inflation & Real-World Financial ImpactUnit 10 of Engineering Economics explores how taxes and inflation distort project cash flows, cost of capital, and real returns—with Nepalese case studies (e.g., VAT on Daraz sales, Ncell’s inflation-adjusted tariffs) and step-by-step adjustments for NPV, IRR, and break-even analysis.11 min read