“Engineering Economic Analysis” is a subject which is taught and applicable in almost all the disciplines of engineering. This subject plays the significant role on evaluation of cost and benefits associated in engineering project. It has wide range of application for analysing the technical projects for all disciplines of engineering. To develop any engineering projects, the concept of financial and economic evaluation is inevitable for engineers. The key responsibility of the engineer in the decision making process is to design and implement the technical projects in low cost as possible and gain maximum benefits from it. So this course helps to prepare students to analyse and make decisions regarding money within the technological and engineering environment. The purpose of this course is to explain the basic concepts of engineering economic analysis in a simple and easily understandable language where students are exposed to different topics like time value of money, methods of economic analysis, comparing alternatives, replacement analysis, risk analysis, depreciation and inflation. This course is based on the syllabus prepared by the “Subject Committee” of Institute of Engineering, Tribhuvan University, Nepal. To support this, lecture notes containing theoretical portion as well as numerical portion will be provided.