CE3050 Finance for Engineers Syllabus:

CE3050 Finance for Engineers Syllabus – Anna University Regulation 2021

COURSE OBJECTIVE:

 To study the concepts of Finance such as fundamentals of management of accounting,Time value of money, comparing alternatives proposals, evaluating alternative investments and management of funds.

UNIT I FUNDAMENTALS OF MANAGEMENT ACCOUNTING

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

UNIT II TIME VALUE OF MONEY

Time Value of Money – Present Value – Future Value – Single amount – Annuity – Cost of Capital – Cost of Debt, Preference, Equity – Proportions- Cost of Capital Calculation – Financial Institutions Considerations.

UNIT III COMPARING ALTERNATIVES PROPOSALS

Comparing alternatives- NPV – BCR – IRR – ARR – Urgency – Pay Back Period and Break Even Analysis – Assessment of Various Methods – Indian Practice of Investment Appraisal – International Practice of Appraisal

UNIT IV EVALUATING ALTERNATIVE INVESTMENTS

Real Estate – Investment Property, Equipment Replace Analysis, Depreciation – Tax before and after depreciation – GST– Input Tax Credit (ITC) – Assessment and Administration of GST – Inflation – Practical knowledge of risk and tax management.

UNIT V 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 – Applications of valuation concepts to real-world cases & examples.

TOTAL : 45 PERIODS
COURSE OUTCOMES:

 On completion of the course, the student is expected to be able to
CO1 Describe the basic principles of accounting
CO2 Assess the value of money
CO3 Evaluate alternate proposals
CO4 Evaluate alternative investments
CO5 Select best source of finance for a project

REFERENCES:

1. Prasanna Chandra, Projects – Planning, Analysis, Selection, Implementation Review, McGraw Hill Publishing Company Ltd., New Delhi. 2006.
2. Blank, L.T., and Tarquin,a.J Engineering Economy,4th Edn. Mc-Graw Hill Book Co., 1988
3. Collier C and GlaGola C Engineering Economics & Cost Analysis, 3nd Edn. Addison Wesley Education Publishers.,1998.
4. Patel, B M Project management- strategic Financial Planning, Evaluation and Control, Vikas Publishing House Pvt. Ltd. New Delhi, 2000
5. Steinand noer, H.M. Engineering Economic principles, 2nd Edn. McGraw Hill Book, 1996