Why Engineering Economics Important to Your Field Specialization ?

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Q : Why Engineering Economics important to your field specialization ? First of all I will talk about my field specialization (engineering ) ,in All engineering activities have an toward the cost and justification of any work or project. This means the engineer needs to be aware of what costs are important and how to determine the optimum way of doing things from an economic standpoint . An Engineer must have to know about Capital Cost, Operating and Maintenance Costs, Taxes, Royalties or Fees, The Cost of Interest and Rates of Return, present value concepts and payouts to help him to develop his work . In my point of view Engineering Economy is Important to Engineers because :- 1. the engineer should Designing involves economic decisions there is a General Steps for Decision Making Processes for all engineers like a:-  Understand the problem – define objectives .  Collect relevant information .  Define the set of feasible alternatives .  Identify the criteria for decision making .  Evaluate the alternatives and apply sensitivity analysis .  Select the “best” alternative .  Implement the alternative and monitor results . 2. Engineers must be able to incorporate economic analysis into their creative efforts . 3. Often engineers must select and implement from multiple alternatives . 4. Understanding and applying time value of money, economic equivalence, and cost estimation are vital for engineers . 5. A proper economic analysis for selection and execution is a fundamental task of Engineering . Finally , the most important concept in engineering economy is The Time Value of Money . Time Value of Money (TVM): Explains the change in the amount of money over time for funds owed by or owned by a corporation (or individual) . During my career I have done some of detailed economic evaluations. I have always found it's help me and its interesting and

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