Have an abilitiy to understand the basic principles of engineering economy;calculation of ordinary and compound interest, money-time relationships, internal rate of return, inflation and cost analysis.
Have an ability to identify, formulate, and solve economy engineering problems.
Operate the cash flow of the projects and compare variable enginnering projects in terms of economy.
Have a knowledge about models of amortisation and apply them.
Use Excel as a tool to solve the problems.
Mode of Delivery
Face to face
Prerequisites
No
Recommended Optional Programme Components
None
Course Description
The course is design for engineering students to explain the relationship between engineering and economics with special emphasis on capital budgeting.
Course Contents
WEEK
TOPICS
1st Week
Engineering Economics, Cost Concepts
2nd Week
cost threads
3rd Week
Cost Calculation Techniques
4th Week
Time Money and Equivalence Relations
5th Week
Time Money and Equivalence Relations
6th Week
Time Money and Equivalence Relations
7th Week
Money Time Relations Practices
8th Week
Money Time Relations Practices
9th Week
Midterm
10th Week
Project Rating
11th Week
alternative Benchmarking
12th Week
Depreciation and Income Tax
13th Week
Cost / Benefit Analysis
14th Week
Uncertainty and risk environments
Recommended or Required Reading
Business Engineering Economy, William G. Sullivan, Pearson International Edition, 14th edition (2009)
Fundamentals of Engineering Economics 3/e, Chan S. Park, Auburn University, Prentice Hall, 2013
Planned Learning Activities and Teaching Methods
Lecture
Presentation
Project
Other
Assessment Methods and Criteria
Quantity
Percentage (%)
Mid-term
1
35
Quiz
1
25
Attendance
1
5
Total(%)
65
Contribution of In-term Studies to Overall Grade(%)
65
Contribution of Final Examination to Overall Grade(%)
