JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Course Objective

To prepare engineering students to analyze cost/ revenue/ financial data and to

make economic and financial analysis in decision making process and to examine the performance of companies engaged in engineering.

Course Outcome

To perform and evaluate present and future worth of the alternate projects and to

appraise projects by using traditional and DCF Methods. To carry out cost benefit analysis of projects and to calculate BEP of different alternative projects.

UNIT - I

Introduction to Engineering Economics- Basic Principles and Methodology of Engineering Economics– Fundamental Concepts- Demand – Demand Determinants - Law of Demand- Demand Forecasting and Methods- Elasticity of Demand- Theory of Firm – Supply- Elasticity of Supply.

UNIT - II

Macroeconomic Concepts: National Income Accounting - Methods of Estimation- Various Concepts of National Income - Inflation – Definition – Causes of Inflation and Measures to Control Inflation - New Economic Policy 1991 (Industrial policy, Trade policy, and Fiscal policy) Impact on Industry.

UNIT - III

Cash Flows and Capital Budgeting: Significance of Capital Budgeting - Time Value of Money- Choosing between alternative investment proposals- Methods of Appraisal Techniques- Pay Back Period - Average Rate of Return – Net Present Value- Internal Rate of Return – Profitability Index.

UNIT - IV

Borrowings on Investment: Equity Vs Debt Financing- Leverages- Concept of Leverage- Types of Leverages: Operating Leverage- Financial Leverage and Composite Leverage. (Simple Problems)

UNIT - V

Introduction to Accounting: Accounting Principles- procedure- Double entry system - Journal- ledger- Trial balance- Trading and Profit and Loss account- Balance Sheet. Cost Accounting, Introduction- Classification of costs- Breakeven Analysis, Meaning and its application, Limitations. (Simple Problems).

TEXT BOOKS:

• 1. Henry Malcom Steinar-Engineering Economics, Principles, McGraw Hill Pub.
• 2. D.D. Chaturvedi, S.L. Gupta, Business Economics - Theory and Applications, International Book House Pvt. Ltd. 2013.
• 3. Jain and Narang” Accounting, Kalyani Publishers.
• 4. Arora, M.N.” Cost Accounting, Vikas Publication.
• 5. S. N. Maheshwari, Financial Management, Vikas Publishing House.
• 6. Zahid A Khan, Arshad N Siddique, et.al, Principles of Engineering Economics with Applications, 2e, Cambridge University Press. R18 B.TECH CIVIL ENGG. III YEAR