ENGINEERING FINANCE ?DefinitionEngineering Finance is defined as "Engineering" using financial methodologies in the (re)structuring of projects to optimise the return on investment and create "Cost Efficient" projects. That would enhance yield and ensure long-term sustainability. What is it?Engineering Finance is a methodology. It is an amalgamation of two bodies of knowledge - "Engineering" and "Finance". Engineering Finance has two tools: MAL Cost Efficiency Model; and Techno-Financial Model. The former deals with the ''Engineering'' structure, whereas the latter deals with the ''Financial'' structure. Together, they create ''Cost Efficient'' project designs.ObjectivesThe objectives of Engineering Finance is to create "Globalised Professionals Technopreneurs" that are more "Cost Conscious" and thus will be able to structure cost efficient project designs.TECHNO-FINANCIAL MODEL? What is it?Techno-Financial Model is the 2nd tool of Engineering Finance. It is used to compute the investment criteria such as Project IRR, Equity IRR, Return On Investment, Return On Equity, Net Present Value, NPV yield, Equity and Project payback period etc.Uses of Techno-Financial Model*Determine the Financial Viability of projects - IRR, payback period etc.*Determine Critical Components that could undermine financial viability of projects*Used as a Negotiating Tool for capital equipment, Fuel Supply Agreements etc*Used as Construction Budget to monitor and control project implementation cost*Used as Operational (O&M) Budget to ensure operational efficiency*Consider Location-Technology- Product Options to optimise return on investment*Consider Market Positioning of Technology and ProductsWho Uses this Book? Essentially for,*MBA, Engineering Doctorate, Industrial Ph.D. students*CEOs, CFOs, CTOs, ........primarily Engineers, Accountants, Economist and all those involved in Business and Project Development and implementations.
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