EMT320: Foundations of Engineering Economy
WEEKLY OVERVIEW: Week 7
Week 7: Cost Benefit Analysis and Public Sector Projects
Course Objectives:
Construct a Cost Benefit Analysis
Evaluate the impact of estimation using techniques like breakeven, sensitivity, or payback
analysis
Evaluate project alternatives taking into consideration depreciation, inflation, and taxes
Weekly Objectives:
Identify fundamental differences between public and private sector alternatives., understand ethical
aspects of the public sector
Use the benefit/cost ratio to evaluate a single project
Select the best of two or more alternatives using the incremental B/C ratio method.
Use a spreadsheet to perform B/C analysis of one or more alternatives
Assigned Reading:
1. Chapter 7 in your textbook
2. View W7 Lecture
3. View W7 Video Lectures
Activities
1. Participate in the W7 discussion How does time play into public sector projects?
2. Complete the W7 Assignment
3. Complete the W7 Proctored Exam