The objective of this course is to give students basic concepts about engineering economy. Moreover, prepare them to the real life situations so that they could make correct project investment decisions. Evaluating projects based on costs and benefits by using the appropriate engineering economy methods are another important goals of this course.
-Lecturer will use his lecture notes and his PowerPoint slides. Individual and Learning Team assignments will be discussed in the begining of the class session. At the last day of the class session Learning Teams (composed of 3 to 5 students) will present their term projects. Moreover, each student will grade his/her learning team member by filling the learning team evaluation form.
Different mega projects will be evaluated by implementing engineering economy tools and methods.
Principle Sources
Lilien, G, L & Rangaswamy, A (2002). Marketing Engineering. Pearson Education, Inc., Upper Saddle River, New Jersey.
Degarmo, E., P Sullivan, W, G (1997). Engineering Economy, Samuelson, P, A., Prentice Hall.
Other Sources
Scholarly journals about project financing as well as lecturers lectures notes and PowerPresentation slides
Course Schedules
Week
Contents
Learning Methods
1. Week
Introduction to engineering economy.
Lecture Notes and PowerPoint Slides
2. Week
Principles of engineering economy.
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3. Week
Introduction to design process.
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4. Week
Introduction to cost accounting.
"
5. Week
Investigation of origins of interest and applications of money time relationships.
" Lecture notes, problem exercises
6. Week
Introduction to opportunity cost.
"
7. Week
Evaluating projects by using certain methods such as cost and benefit and the break even methods.
"
8. Week
Midterm Exam
9. Week
Application of minimum attractive rate of return, internal rate of return, external rate of return, present worth and annual worth methods.
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10. Week
Different depreciation methods in cost accounting.
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11. Week
Evaluation of successful and unsuccessful projects.
" Case studies
12. Week
Sensitivity analysis and replacement analysis.
"
13. Week
Applications of money-time relationships
"
14. Week
Project financing and feasibility studies.
" Case studies
15. Week
Presentation of Learning Team Projects
16. Week
Summary of the course and field trip if conditions are available.
17. Week
Final Exam
Assessments
Evaluation tools
Quantity
Weight(%)
Midterm(s)
1
30
Quizzes
2
10
Project(s)
1
20
Attendance
17
5
Final Exam
1
35
Program Outcomes
PO-1
Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline; ability to use theoretical and applied information in these areas to model and solve engineering problems.
PO-2
Ability to identify, formulate, and solve complex engineering problems; ability to select and apply proper analysis and modelling methods for this purpose.
PO-3
Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way so as to meet the desired result; ability to apply modern design methods for this purpose. (Realistic constraints and conditions may include factors such as economic and environmental issues, sustainability, manufacturability, ethics, health, safety issues, and social and political issues according to the nature of the design.)
PO-4
Ability to devise, select, and use modern techniques and tools needed for engineering practice; ability to employ information technologies effectively.
PO-5
Ability to design and conduct experiments, gather data, analyse and interpret results for investigating engineering problems.
PO-6
Ability to work efficiently in intra-disciplinary and multi-disciplinary teams; ability to work individually.
PO-7
Ability to communicate effectively, both orally and in writing; knowledge of a minimum of one foreign language.
PO-8
Recognition of the need for lifelong learning; ability to access information, to follow developments in science and technology, and to continue to educate him/herself.
PO-9
Awareness of professional and ethical responsibility.
PO-10
Information about business life practices such as project management, risk management, and change management; awareness of entrepreneurship, innovation, and sustainable development.
PO-11
Knowledge about contemporary issues and the global and societal effects of engineering practices on health, environment, and safety; awareness of the legal consequences of engineering solutions.
Learning Outcomes
LO-1
Learn the origins of interest and interest rates.
LO-2
Learn the applications of money time relationships.
LO-3
Learn to analyze break-even methods and the concepts.
LO-4
Learn to apply feasiblity analysis on the projects.
LO-5
Identify successful and unsuccessful projects.
LO-6
Understand the importances of Risk Management and Time Management.
LO-7
Be well informed about project financing concepts.
LO-8
Be well informed about Financial Accounting and Cost Accounting concepts.
LO-9
Be well informed about causes of inflation.
LO-10
Learn the importance of the team work in real life circumstances.
