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A text book Principles of Engineering Economy, New York: The Ronald Press Company, 1930, was published by Eugene Grant. He is considered as the father of engineering economy.
Engineering economy involves the systematic evaluation of the economic merits of proposed solutions to engineering problems. To be economically acceptable (i.e. affordable), solutions to engineering problems must be demonstrate a positive balance of long-term benefits over long-term costs,
By engineering principles we mean the ideas, rules, or concepts that need to be kept in mind when solving an engineering problem.
The 7 principles of Engineering Economy Develop the Alternatives; Focus on the Differences; Use a Consistent Viewpoint; Use a Common Unit of Measure; Consider All Relevant Criteria; Make Uncertainty Explicit; Revisit Your Decisions.
Principle 1: A dollar earned today is worth more than a dollar earned in the future. Principle 2: The only thing that matters is the difference between alternatives. Principle 3: Marginal revenue must exceed marginal cost. Principle 4: Additional risk is not taken without the expected additional return.

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Fundamentally, engineering economics involves formulating, estimating, and evaluating the economic outcomes when alternatives to accomplish a defined purpose are available.
ECONOMIC PRINCIPLE #1. Scarcity Forces Tradeoffs. ECONOMIC PRINCIPLE #2. Costs vs. ECONOMIC PRINCIPLE #3. People Think at the Margin. ECONOMIC PRINCIPLE #4. Incentives Matter. ECONOMIC PRINCIPLE #5. Trade Makes People Better Off. ECONOMIC PRINCIPLE #6. Markets Coordinate Trade. ECONOMIC PRINCIPLE #7. Future Consequences Count.

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