MINE 611 - Engineering Economics

(2 units)

Introduction to management accounting principles, balance sheet and income statement, depreciation, depletion and cash flow. Financial evaluation using present value theory, equipment evaluation and replacement. Risk and sensitivity analysis.

Maximum units a student may earn: 2

Grading Basis: Graded
Units of Lecture: 2
Offered: Every Fall

Student Learning Outcomes
Upon completion of this course, students will be able to:
1. apply engineering economic principals to after tax analysis of equipment replacement decisions.
2. determine cash flow, PV, DCFROR, etc., for case study mining examples.
3. communicate the development of the after tax cash flow statement and the effects of depreciation, depletion, mine exploration and development expenditures, etc., on the cash flow statement.
4. communicate the importance of engineering economics.
5. conduct advanced sensitivity analysis and risk assessment on engineering economic decisions, including the evaluation of uncertainty in key financial parameters and their impact on project feasibility.

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