Basic concepts of economic analysis and evaluation of alternative engineering projects for capital investment. Consideration of time value of money and common merit measures such as net present value and internal rate of return. Selection of independent projects and mutually exclusive proposals, using various methods of analysis. Capital budgeting and project financing. Influence of price level changes, depreciation and taxation on choice of alternatives. Uncertainty and risk in operation and financing. Important factors affecting investment decisions for private and public projects. 3 hrs. rec. Prerequsite: 21-115 or 21-116 and Senior Standing in Civil and Environmental Engineering
