Foreword

        Practicing engineers are routinely faced with these crucially important questions: Is the design/device technically feasible? and What does it cost/will it pay for itself? To answer the first question satisfactorily, engineers draw upon their technical skills which have been carefully honed through courses in engineering science/design as well as by professional experience. The second question is often more difficult for engineers to answer affirmatively. This may be true because economic principles were addressed only as an afterthought in their engineering coursework, or possibly not at all! Those students who were fortunate enough to have taken a course in engineering economy have little difficulty answering the "Will it pay?" question which is frequently just as important a question as "Will it work?". This statement strikes many engineering students as unbelievable; yet later on, their professional career will be significantly affected by their ability to deal competently with the economic aspect of engineering.
        This course is intended to introduce students to the monetary side of engineering. In broad terms, for an engineering design to be successful, it must be technically sound and produce benefits. These benefits must exceed the costs associated with the design in order for the design to enhance net value. The field of engineering economy is concerned with the systematic evaluation of the benefits and costs of projects involving engineering design and analysis. In other words, engineering economy quantifies the benefits and costs associated with engineering projects to determine if they make (or save) enough money to warrant their capital investments. Thus, engineering economy requires the application of engineering design and analysis principles to provide goods and services that satisfy the consumer at an affordable cost. As we shall see, engineering economy is as relevant to the design engineer who considers material selection as it is to the chief executive officer who approves capital expenditure for new ventures.