Understanding the basic knowledge to use and evaluate monetary issues in financial and investment decision problems
Prerequisite(s)
Course Code Course Name…
Corequisite(s)
Course Code Course Name…
Special Requisite(s)
The minimum qualifications that are expected from the students who want to attend the course.(Examples: Foreign language level, attendance, known theoretical pre-qualifications, etc.)
Instructor(s)
Lecturer Dr. Oğuz Akalın
Course Assistant(s)
Schedule
The course is not offered this semester.
Office Hour(s)
The course is not offered this semester.
Teaching Methods and Techniques
-
Principle Sources
Engineering economy, William G. Sullivan, Elin M. Wicks, C. Patrick Koelling. Sixteenth edition.
Other Sources
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Course Schedules
Week
Contents
Learning Methods
1. Week
Cost concepts and break even analysis
Oral presentation
2. Week
Nonlinear break even analysis, cost driven design optimization
Present worth, future worth, annual worth, internal rate of return
Oral presentation
9. Week
External rate of return, payback period methods
Oral presentation
10. Week
Comparing alternatives with equal useful lives
Oral presentation
11. Week
Comparing alternatives with different useful lives
Oral presentation
12. Week
Comparing alternatives with different useful lives
Oral presentation
13. Week
Depreciation and income taxes
Oral presentation
14. Week
Depreciation and income taxes
Oral presentation
15. Week
Final Exam
16. Week
Final Exam
17. Week
Final Exam
Assessments
Evaluation tools
Quantity
Weight(%)
Quizzes
1
40
Final Exam
1
60
Program Outcomes
PO-1
Knowledge about management processes and management skills
PO-2
Knowledge and application skills related to the methods and competencies required for solving engineering problems
PO-3
Knowledge about developing areas of manufacturing and service sectors
PO-4
Ability to work in multi-disciplinary engineering teams
PO-5
Experience and knowledge of scientific research and publishing within the frame of academic ethics
Learning Outcomes
LO-1
Recall cost definitions and identify the differences between variable and fixed costs, use cost concept details to determine the least cost one form among several alternatives.
LO-2
Calculate profitable domain and optimum production volume and interpret the results for a given non-linear cost function.
LO-3
Employ interest conversion factors for present to future, future to present, present to annuity, annuity to present, future to annuity and annuity to future for solving equivalence problems.
LO-4
Calculate present worth, future worth, annual worth, net present value (NPV), internal rate of return, the external rate of return, simple and discounted payback periods and benefit/cost ratio for evaluating single project under time value of money concept.
LO-5
Use present worth, future worth, annual worth, internal rate of return, external rate of return, and benefit / cost ratio method to compare investment and cost alternatives with same or different useful lives.
LO-6
Convert actual cash flow to real cash flow for given inflation rate. Calculate actual or real present worth, future worth, annual worth, internal rate of return for given inflation rate, combined interest rate or real interest rate.
