2026 ASEE Annual Conference & Exposition

Engineering students learn to use technical requirements and constraints to make decisions in the majority of their coursework. However, practicing engineers are often profoundly affected by financial constraints, which can significantly influence decision-making and constrain design options. Engineering economics courses are often the only opportunities for engineering students to combine the technical and economic aspects of engineering and develop the skills for more comprehensive decision-making.

This paper presents a techno-economic case study that uses the technical and financial aspects of electric and gasoline vehicles to help students explore how both will influence decisions and how they are inextricably intertwined.

Students are tasked with developing a “first-cut” net present value analysis comparing the one-time capital, recurring operating, and end-of-life cash flows for electric and gasoline vehicles to determine the better option. Since students are developing the analyses and making assumptions, the results vary widely, and there is rarely a clear answer.

The case study analysis demonstrates that finances are a critical constraint in engineering design. It also highlights the uncertainty and variability in design decision-making, as well as the assumptions that feed the entire process. The most important takeaway is the realization that technical metrics largely determine the financial outcome, and vice versa.