ENGINEERING ECONOMY

Course Description

The purpose of this course is to provide an introductory basis for economic analysis in decision making process in engineering design, manufacturing equipment and industrial projects. This course aims to supplement engineering students with the knowledge and capability to perform financial analysis especially in the area of capital investment. It emphasizes the systematic evaluation of the costs and benefits associated with proposed technical projects. The student will be exposed to the concepts of the “time value of money” and the methods of discounted cash flow. Students are prepared to make decisions regarding money as capital within a technological or engineering environment. Assignments and homework help and guide the students to apply the knowledge acquired during the course.

ENGINEERING ECONOMY

Evaluation Tools (Active Term)

Course outcomes

1. 01 Recognize the fundamental concepts of engineering economy
2. 02 Apply engineering economy factors to account for the time value of money
3. 03 Analyze Service, revenue, mutually exclusive and independent alternatives
4. 04 Perform economic analysis of alternatives using present worth, annual worth, future worth and rate of return methods.
5. 05 Evaluate projects using rate-of -return and benefit/cost ratio methods
6. 06 Decide the level of activity necessary or the value of a parameter to breakeven.
7. 07 Combine the effects of inflation into an economic analysis whenever necessary

Course Syllabus

Reference Books & Course Materials

1. 01 Leland Blank and Anthony Tarquin "Basic of Engineering Economy" ,Mc Graw Hill, 1st edition, 2008.
2. 02 Leland Blank and Anthony Tarquin “Engineering Economy”, Mc Graw Hill, sixth edition, 2005.
3. 03 William G. Sullivan, Elin M. Wicks and James T. Luxhoj “Engineering Economy”, Thirteenth edition, Pearson Prentice-Hall, 2006.

Learning Outcomes

1. L01 Identify (2) and Explain (4) fundamental concepts of engineering economy SOLO 3
2. L02 Identify (2) and Generalize (5) engineering economy factors to account for the time value of money SOLO 3.5
3. L03 Explain (4) service, revenue, mutually exclusive and independent alternatives SOLO 4
4. L04 Explain (4) and generalize (5) economic analysis of alternatives using present worth, annual worth, future worth and rate of return methods. SOLO 4.5

Program Outcomes

1. P01 1. Gained the necessary skills to learn and adopt a spirit of continuous learning in their professional life.
2. P02 2. Developed various skills by working independently via specific learned techniques that both triggered individual efforts and encouraged collaborative work.
3. P03 3. Acquired the essential knowledge and skills to apply key theories, models and applications within the global business context.
4. P04 4. Adopted and applied critical and strategic thinking together with research capabilities for efficient and effective business decisions.
5. P05 5. Utilized and managed ethically information technologies required for contemporary business world.
6. P06 6. Been equipped with conceptual and analytical skills necessary for team work within global organizations.
7. P07 7. Displayed their learnt communication skills that are required to effectively interact in a cross cultural and diverse international work environment.
8. P08 8. Applied their acquired knowledge within the changing work environment.
9. P09 9. Developed an understanding of ethical perspectives and social responsibilities to be used at work and in personal life.

Po-Lo Matrix