ENGINEERING ECONOMY

CE231

Course Code: CE231
Semester: Third Term (Fall)
Theory+Practice: 3 + 0
ECTS: 4

Course Type

Compulsory Course

Course Level

Bachelor's Degree

Year of Study

Semester

Third Term (Fall)

ECTS

Name of Lecturer(s)

Assistant Professor Gözde Bilgin

Learning Outcomes

At the end of this course, the students;

Explain and apply the fundamental concepts of engineering economics (such as the time value of money, types of interest, internal rate of return, inflation, depreciation, etc.),
Identify, formulate, and solve engineering economics problems using appropriate methods,
Develop cash flow diagrams for projects, evaluate and compare alternative projects from an economic perspective,
Assess the economic feasibility of alternative engineering projects using various methods (such as net present value, rate of return, replacement analysis, economic life, benefit/cost analysis, payback period, break-even analysis, etc.) and make comparative decisions based on fundamental techniques used in professional practice.

Mode of Delivery

Face to face

Prerequisites

Recommended Optional Programme Components

None

Course Description

This course handles the time value of money and methods of comparing alternatives from economic point of view, thus aims enabling students to make suitable decisions when they have to make a decision on an economical basis in their professional life.

Course Contents

WEEK	TOPICS
1^st Week	Introduction to Economy
2^nd Week	Introduction to Engineering Economy and Economic Decision Parameters
3^rd Week	Simple and Compound Interest
4^th Week	Effective and Nominal Interest
5^th Week	Methods of Comparison of Alternatives
6^th Week	Methods of Comparison of Alternatives
7^th Week	Rate of Return Method
8^th Week	Midterm Exam
9^th Week	Replacement Analysis and Economic Life
10^th Week	Replacement Analysis and Economic Life
11^th Week	Benefit/Cost Analysis
12^th Week	Depreciation
13^th Week	Payback Period
14^th Week	Break-even Analysis
15^th Week	Effect of Inflation

Recommended or Required Reading

Blank, L. and Tarquin, A. (2018). Engineering Economy. Eighth Edition, McGraw-Hill, USA.

Planned Learning Activities and Teaching Methods

Lecture
Presentation
Other
Problem Solving
Discussion
Questions/Answers

Assessment Methods and Criteria

	Quantity	Percentage (%)
Mid-term	1	30
Quiz	2	30
Attendance	1	5
Total(%)		65
Contribution of In-term Studies to Overall Grade(%)		65
Contribution of Final Examination to Overall Grade(%)		35
Total(%)		100

ECTS Allocated Based on Student Workload

Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Midterm exam	1	2	2
Preparation for Quiz	2	5	10
Individual or group work
Preparation for Final exam	1	35	35
Course hours	14	3	42
Preparation for Midterm exam	1	25	25
Laboratory (including preparation)
Final exam	1	2	2
Homework
Quiz	2	2	4
Total Work Load			120
Total Work Load / 30 (h)			4
ECTS Credit of the Course			4

Language of Instruction

English

Work Placement(s)

Programme Qualifications / Learning Outcomes

	LO1	LO2	LO3	LO4
K1	X	X	X
K2
K3
K4
K5
K6
K7
K8
K9
K10			X	X
K11