Topics: i) Identify mutually exclusive and independent projects; define revenue and cost alternatives. (1) Nominal and Effective Interest Rates (a) Make computations for interest rates and cash flows that are on a time basis other than a year (b) Present Worth Analysis (c) Annual Worth Analysis (2) Define and use the basic terms of asset depreciation. (a) Apply the straight line (SL) method of depreciation. (b) Apply the declining balance (DB) and double declining balance (DDB) methods of depreciation. (c) Apply the modified accelerated cost recovery system for tax depreciation purposes for U.S. based corporations. (3) Recovery period - Select the asset recovery period for MACRS depreciation. (4) Depletion - Explain depletion; apply cost depletion and percentage depletion (a) methods. (5) Demand and Supply and Derivation of Demand (6) The Circular Flow Theory ii) Discounted Cash Flow model iii) Rate of Return Analysis: One Project iv) Rate of Return Analysis: Multiple Alternatives v) Assess the different financial terminologies used in the engineering process and the decision-making processes. vi) Justify financial implications of decisions Topics: i) Identify mutually exclusive and independent projects; define revenue and cost alternatives. (1) Nominal and Effective Interest Rates (a) Make computations for interest rates and cash flows that are on a time basis other than a year (b) Present Worth Analysis (c) Annual Worth Analysis (2) Define and use the basic terms of asset depreciation. (a) Apply the straight line (SL) method of depreciation. (b) Apply the declining balance (DB) and double declining balance (DDB) methods of depreciation. (c) Apply the modified accelerated cost recovery system for tax depreciation purposes for U.S. based corporations. (3) Recovery period - Select the asset recovery period for MACRS depreciation. (4) Depletion - Explain depletion; apply cost depletion and percentage depletion (a) methods. (5) Demand and Supply and Derivation of Demand (6) The Circular Flow Theory ii) Discounted Cash Flow model iii) Rate of Return Analysis: One Project iv) Rate of Return Analysis: Multiple Alternatives v) Assess the different financial terminologies used in the engineering process and the decision-making processes. vi) Justify financial implications of decisions