INEN 2273 - Engineering Economics

– Fall, 2005 Semester –

Required of all engineering majors

2006-2008 Catalog Data:     

INEN 2273:

Engineering Economics. Credit 2. The time value of economic resources, engineering project investments analysis, effect of taxes on engineering project decisions.

Prerequisites: ENGR-1301, MATH-2413.

Prerequisites by Topic:          1. Algebra, 2. Differential Calculus, 3. Use of internet and spreadsheet                                                   software

Textbook:                               White, Agee, Pratt, Case, Principles of Engineering Economic Analysis,                                           4th ed., Wiley, 1998, ISBN: 0-471-11027-2 

References: 

Blank and Tarquin, Engineering Economy, 6th ed., McGraw-Hill, 2005.                                                                     

Thuesen and Fabrycky, Engineering Economy, 9th ed., Prentice-Hall, 2001.                                      

Riggs et. al., Engineering Economics, 4th ed., McGraw- Hill, 1996.                                                   

Grant, et. al., Principles of Engineering Economy, 8th ed., Wiley, 1990.                                                           

Park, Contemporary Engineering Economics, 3rd ed., Addison Wesley,  2001.                                                                                                                                                              

Newman, Donald G. et al , Engineering Economic Analysis, 9th ed.,                                                        Engineering press,2004.

 Coordinator:             Dr. Victor Zaloom, Professor and Chairman, Industrial Engineering. 

 Objectives:

Competence in making quantitative evaluations of engineering alternatives in terms of worth and cost should be achieved by each student. The student's awareness of the economic problems and choices confronting an industrial enterprise or other organization will be heightened. 

Topics (Two 50 minute lectures per week):

1.         The time value of money, interest and interest rates (all classes)                                                              

2.         Present value, Annual worth, Future worth, Rate of return (1 week)                                                             

3.        Comparison of alternatives (5 weeks)                                                                                                                    

4.         Replacement Analysis (1 week)                                                                                                                         

5.         Depreciation and taxes (3 weeks)                                                                                                                  

6.         Cost terminology, Breakeven analysis (1 week)                                                                                                       

7.         Accounting principles, Cash flow (1 week)                                                                                                               

8.         Test (2 weeks)

Computer Usage:      

Use of spreadsheet software and specific function in MS Excel are discussed at appropriate times throughout the semester.

Projects:

Students are required to select a publicly held company and follow stock price performance of the company during the semester. They must produce an Excel or other spreadsheet software table and graph of the daily high, low, and closing price for these company's stocks. A report analyzing the company selected must also be submitted at the end of the semester. Data and other information for the company analysis is to be obtained from the internet, library and other sources.

Outcomes Achieved:  1, 5, 7, 10, 15

OUTCOME 1: An ability to apply knowledge of mathematics, science, and engineering to the analysis of industrial engineering problems, Criterion 3(a)

OUTCOME 5:  An ability to identify, formulate, and solve engineering problems, Criterion 3(e)

OUTCOME 7: An ability to communicate effectively both in writing and orally, Criterion 3(g)

OUTCOME 10: A knowledge of contemporary issues, Criterion 3(j)

OUTCOME 15: An integration of faculty experience gained from research, professional experience, and consulting into program courses

ABET category content as estimated by the faculty member who prepared this course description:

            Professional Component: 2 Credits of Engineering Topics