ENGR 352 Engineering Economy (3)
Required course
for chemical, civil, environmental and mechanical.
Catalog Description:
Economic decision-making for engineering
systems. Choice of alternatives bu equivalent annual
cost, rate of return, present worth and benefit cost methods. Tax influences, decision-making, replacement
policy. Fall, spring and summer. Lecture
3 hours. Prerequisites: ENGR 222 with grade of C or better.
Prerequisites:
ENGR 222 with grade of C or better.
Textbook/References:
Sullivan, William G., Bontadelli, James, A. and Wicks,
Elin, M., “Engineering Economy,” Prentice Hall, 12th Ed., 2003.
Course Objectives: (numbers in brackets indicate the relationship to engineering program
outcomes)
Familiarize
students with the economic analysis techniques and financial aspects of
engineering projects.
·
Provide the
student with a background in engineering economic principles in the following
areas: interest and equivalence,
economic analysis of alternatives, depreciation, income taxes, estimating,
decision-making, risks, financial statement, and economic analysis of
operations. (1)
Provide the
student with analytical skills necessary to formulate and solve basic problems
in engineering economic studies including computer based solutions. (2)
Help
students develop and appreciation for the impact of economic decision making in
design and operations and the implication of these choices in the corporate
environment. (4)
Class/Laboratory Schedule:
Lecture
either three times per week at 50 minutes per class, or two times per week at
75 minutes per class.
Topics Covered:
Topics Weeks
Fundamental concepts 1
Interest factors 1
Equivalence 1
Comparison of alternatives 2
Benefit/cost
analysis 1
Depreciation 1
Income
taxes 1
Multiple
alternatives 1
Sensitivity
analysis and inflation 1
Risk
and uncertainty in decision making 1
Retirement
and replacement 1
Spreadsheet
applications 1
Contribution to Professional Component:
Contributes toward the 1.5 years of engineering topics
as a 3 credit hour course in engineering sciences.
Relationship of course to program outcomes
This
course supports engineering outcomes 1, 2 and 4.
Prepared by: Dr. Prem Chopra,