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 Knowledge of mathematics, natural sciences, basic engineering, computer-based computation, and topics specific to the relevant engineering discipline.
2. P02 Ability to apply knowledge of mathematics, natural sciences, basic engineering, computer-based computation, and topics specific to the relevant engineering discipline to the solution of complex engineering problems.
3. P03 Ability to define complex engineering problems by using knowledge of basic sciences, mathematics, and engineering, while considering the relevant United Nations Sustainable Development Goals (SDGs) related to the problem addressed.
4. P04 Ability to formulate complex engineering problems using knowledge of basic sciences, mathematics, and engineering, while considering the relevant United Nations Sustainable Development Goals (SDGs) associated with the problem addressed.
5. P05 Ability to analyse and solve complex engineering problems using knowledge of basic sciences, mathematics, and engineering, while considering the relevant United Nations Sustainable Development Goals (SDGs) associated with the problem addressed.
6. P06 Ability to design creative solutions to complex engineering problems.
7. P07 Ability to design complex systems, processes, devices, or products in a way that meets present and future needs while considering realistic constraints and conditions.
8. P08 Ability to select and use appropriate techniques and resources—including estimation and modelling—for the analysis and solution of complex engineering problems, while being aware of their limitations.
9. P09 Ability to select and use modern engineering and computational tools—including estimation and modelling—for the analysis and solution of complex engineering problems, while being aware of their limitations.
10. P10 Ability to conduct literature research and use appropriate research methods for the investigation of complex engineering problems.
11. P11 Ability to design experiments for the investigation of complex engineering problems.
12. P12 Ability to conduct experiments, collect data, analyse results, and interpret findings for the investigation of complex engineering problems.
13. P13 Knowledge of the impacts of engineering practices on society, health and safety, the economy, sustainability, and the environment within the framework of the United Nations Sustainable Development Goals (SDGs).
14. P14 Awareness of the legal implications of engineering solutions within the framework of the United Nations Sustainable Development Goals (SDGs).
15. P15 Knowledge of ethical responsibility and adherence to the principles of professional engineering conduct.
16. P16 Awareness of acting impartially without discrimination in any matter and of being inclusive of diversity.
17. P17 Ability to work effectively as an individual.
18. P18 Ability to work effectively as a team member or leader in intra-disciplinary teams (face-to-face, remote, or hybrid).
19. P19 Ability to work effectively as a team member or leader in multidisciplinary teams (face-to-face, remote, or hybrid).
20. P20 Ability to communicate effectively in spoken form on technical matters, taking into account the diverse characteristics of the target audience (such as education, language, and profession).
21. P21 Ability to communicate effectively in written form on technical matters, taking into account the diverse characteristics of the target audience (such as education, language, and profession).
22. P22 Knowledge of professional practices such as project management and economic feasibility analysis.
23. P23 Awareness of entrepreneurship and innovation.
24. P24 Ability for independent and lifelong learning.
25. P25 Ability to adapt to new and emerging technologies.
26. P26 Lifelong learning ability that includes the capacity to think critically about technological changes.

Po-Lo Matrix