MGT250 Engineering Economics
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 readUnit 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 readUnit 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 readUnit 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