ENGINEERING ECONOMY
- Course
- INDE232 - ENGINEERING ECONOMY
- Department
- Industrial Engineering - English - Undergraduate
- Course Type
- Course
- Status
- Required
- Language
- English
- Credit
- 3
- ECTS
- 4
- T+P+L
- 3 + 0 + 0
- Course Coordinator(s)
- Dr. Faramarz KHOSRAVı
- Prerequisite
- -
- Keywords
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)
| Item | Type | Weight (%) |
|---|---|---|
| Quiz 1 | Quiz | 10 |
| Quiz 2 | Quiz | 10 |
| Midterm | Midterm | 40 |
| Final | Final | 40 |
| Total | 100 | |
Course outcomes
- 01 Recognize the fundamental concepts of engineering economy
- 02 Apply engineering economy factors to account for the time value of money
- 03 Analyze Service, revenue, mutually exclusive and independent alternatives
- 04 Perform economic analysis of alternatives using present worth, annual worth, future worth and rate of return methods.
- 05 Evaluate projects using rate-of -return and benefit/cost ratio methods
- 06 Decide the level of activity necessary or the value of a parameter to breakeven.
- 07 Combine the effects of inflation into an economic analysis whenever necessary
Course Syllabus
| Week | Topic |
|---|---|
| Week 1 | Importance of Eng. Economy |
| Week 2 | Money time relations, factors |
| Week 3 | Simple & Compund Interest Rates and Cash Flow Diagrams |
| Week 4 | Single Amount and Uniform Series Factors |
| Week 5 | Gradients and Factors |
| Week 6 | Shifted Cash Flows |
| Week 7 | Nominal and Effective interest rates, combining factors |
| Week 8 | Midterm Week |
| Week 9 | Nominal and Effective interest rates, combining factors |
| Week 10 | Nominal and Effective interest rates, combining factors |
| Week 11 | Present Worth and Annual Worth methods |
| Week 12 | Present Worth and Annual Worth methods |
| Week 13 | Capitalized Cost Analysis |
| Week 14 | Revision Class |
| Week 15 | Final Week |
Reference Books & Course Materials
- 01 Leland Blank and Anthony Tarquin "Basic of Engineering Economy" ,Mc Graw Hill, 1st edition, 2008.
- 02 Leland Blank and Anthony Tarquin “Engineering Economy”, Mc Graw Hill, sixth edition, 2005.
- 03 William G. Sullivan, Elin M. Wicks and James T. Luxhoj “Engineering Economy”, Thirteenth edition, Pearson Prentice-Hall, 2006.
Learning Outcomes
- L01 Identify (2) and Explain (4) fundamental concepts of engineering economy SOLO 3
- L02 Identify (2) and Generalize (5) engineering economy factors to account for the time value of money SOLO 3.5
- L03 Explain (4) service, revenue, mutually exclusive and independent alternatives SOLO 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
No program outcomes have been defined.
Po-Lo Matrix
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