Syllabus

Course Prerequisite: UG Level course on Economics and Finance

Module I: Basic Principles (8 hours)
Time Value of Money, Cash Flow diagram, Nominal and effective interest, Continuous interest, Single Payment Compound Amount Factor (P/F, F/P), Uniform series of Payments (F/A, A/F, F/P, A/P), Problem time zero (P.T.Z.), equation time zero (E.T.Z.), Constant increment to periodic payments, Arithmetic Gradient (G), Geometric Gradient (C).

Module II: Comparing Alternatives Proposals (7 hours)
Comparing alternatives, Present Worth Analysis, Annual Worth Analysis, Future Worth Analysis, Rate of Return Analysis (R.O.R.) and Incremental Rate of Return (I.R.O.R.)Analysis, Benefit/Cost Analysis, Break Even Analysis.

Module III: Evaluating Alternative Investments (7 hours)
Real Estate, Investment Property, Equipment Replace Analysis, Depreciation, Tax before and after depreciation, Value Added Tax (V.A.T.), Inflation.

Module IV: Funds Management (7 hours)
Project Finance, Sources of finance, Long-term and short-term finance, Working Capital Management, Inventory Valuation, Mortgage Financing, International financial management, and Foreign currency management.

Module V: Fundamentals of Management Accounting (7 hours)
Management and Financial accounting principles, Basic concepts, Financial statements, Accounting ratios, Funds, and cash flow statements.

To study the basic principles of Construction Economics and Finance.

To study the concepts related to the comparison of alternative proposals.

To evaluate alternative investments in the construction industry.

To study and understand the management of funds and management of accounting in a construction project.

CO1: The students will be able to describe the basic principles of Economics in construction.
CO2: The students will be able to evaluate alternate proposals.
CO3: The students will be able to evaluate alternative investments.
CO4: The students will be able to identify and select the best source of finance for a project.
CO5: The students can manage the finance and accounting for a construction project.

L.T. Blank, and J. Tarquin, Engineering Economy, Mc-Graw Hill Book Co.

C. Collier, and C. GlaGola, Engineering Economics and Cost Analysis, Addison Wesley Education Publishers

H.M. Steiner, Engineering Economic principles, McGraw Hill

B.M. Patel, Project management- strategic Financial Planning, Evaluation and Control, Vikas Publishing House Pvt. Ltd