CN7008 ECONOMICS AND FINANCE MANAGEMENT IN CONSTRUCTION

CN7008 ECONOMICS AND FINANCE MANAGEMENT IN CONSTRUCTION

UNIT I BASIC PRINCIPLES

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 (PTZ)- equation time zero (ETZ). Constant increment to periodic payments – Arithmetic Gradient(G), Geometric Gradient (C). 20

UNIT II COMPARING ALTERNATIVES PROPOSALS

 Comparing alternatives- Present Worth Analysis, Annual Worth Analysis, Future Worth Analysis, Rate of Return Analysis (ROR) and Incremental Rate of Return (IROR)Analysis, Benefit/Cost Analysis, Break Even Analysis.

UNIT III EVALUATING ALTERNATIVE INVESTMENTS

 Real Estate - Investment Property, Equipment Replace Analysis, Depreciation – Tax before and after depreciation – Value Added Tax (VAT) – Inflation.

UNIT IV FUNDS MANAGEMENT

Project Finance – Sources of finance - Long-term and short -term finance, Working Capital Management, Inventory valuation, Mortgage Financing - International financial management- foreign currency management.

UNIT V FUNDAMENTALS OF MANAGEMENT ACCOUNTING

 Management accounting, Financial accounting principles- basic concepts, Financial statements – accounting ratios - funds flow statement – cash flow statement.

REFERENCES:

1. Blank, L.T., and Tarquin,a.J (1988) Engineering Economy,4th Edn. Mc-Graw Hill Book Co.

2. Collier C and GlaGola C (1998) Engineering Economics & Cost Analysis, 3nd Edn. Addison Wesley Education Publishers.

3. Patel, B M (2000) Project management- strategic Financial Planning, Evaluation and Control, Vikas Publishing House Pvt. Ltd. New Delhi.

4. Shrivastava,U.K., (2000)Construction Planning and Management,2nd Edn. Galgotia Publications Pvt. Ltd. New Delhi.

5. Steiner, H.M. (1996) Engineering Economic principles, 2nd Edn. Mc-Graw Hill Book, New York. 

Engineering Economic Principles International Ed Edition