MS 224 Engineering Economics

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28 Οκτ 2013 (πριν από 3 χρόνια και 9 μήνες)

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University of Management & Technology


School of Science & Technology


Department of Electrical Engineering


MS 224 Engineering Economics

Lecture
Schedule

As per Time table.

Semester

S
ummer

201
1

Pre
-
requisite

None

Credit Hours

2

Instructor
(s)

Faisal Khan

Contact

faisal.khan
@umt.edu.pk

Office

C3/14,
2
nd

Floor,
Central
Block
.

Office Hours

See
O
ffice window

Teaching
Assistant

TBA

Contact

N/A

Office

N/A

Office Hours

N/A

Course
Description

This is a stand
-
alone under graduate course in economics which deals with introductory
level of economics. Brief
introduction
to Accounting and Finance are touched so that
students get to know that how engineering projects are initiated, planned, executed,

controlled and completed
.
The course directly contributes to
objectives

b
,

c,

g

and
k

of
the HEC Electrical Engineering Curriculum.

Expected
Outcomes

Upon completion of this course, students will:



Have
awareness

amongst the students about the economic

and
financia
l
considerations involved in engineering projects.



Have good understanding of Time Value of Money.



Have working knowledge of basic economic analysis like Present worth, Annual
worth, Cost
-
Benefit, Rate of return, payback period etc.



Have
familiarity with return concept on any particular investment like IRR, ERR etc.



Basic introduction to Accounting and Project financing.



The course strongly supports expected
outcomes

b,
c, g
and
k

of the HEC Electrical
Engineering Curriculum.

Textbook
(s)

Recommended Text:

Engineering Economic Analysis 9
th

Edition

by
Donald Newnan,
Ted Eschenbach,

Jerome Lavelle
. Oxford University Press, 2004

Grading
Policy



Quizzes
/
Class participation
:

20
%



Midterm [In Class]:



30%



Final:



50%



Course Schedule


Lecture

Topics

Textbook (TB)
/Handout

1
-
2

What is Engineering? What is Economics?

Concept of Engineering Economy.

Role of Engineering Economic Analysis, Decision making process.

Chapter 1

3
-
6

Basic principles of Economics, Micro

and Macro
economic theory,
P
roblems
of scarcity. Economic Environment: Consumer and producer goods, goods
and services, demand & supply concept. Equilibrium, elasticity of demand,
elasticity of supply.

Handout

7
-
8

Engineering Costs, Cost Estimation, Bene
fit Estimation, Cash Flow Diagram.

Chapter 2

9
-
11

Computing Cash Flows, Time Value of Money , Simple Interest, Compound
Interest, Repaying a Debt, Equivalence, Single Payment Compound Interest
Formulas

Chapter 3

12
-
1
5

Uniform Series Compound Interest
Formulas, Relationships Between
Compound Interest Factors, Single Payment, Uniform Series, Arithmetic
Gradient, Geometric Gradient, Nominal and Effective Interest , Continuous
Compounding, Spreadsheets

for Economic Analysis

Chapter 4

MIDTERM

1
6
-
1
9

PRESENT WORTH ANALYSIS

Assumptions in Solving Economic Analysis Problems Economic Criteria,
Applying Present Worth Techniques,
Useful Lives Equal the Analysis Period,
Useful Lives Different from the Analysis Period, Infinite Analysis Period:
Capitalized Co
st, Multiple Alternatives,
Spread sheets and Present Worth

Chapter 5

20
-
2
4

ANNUAL
WORTH
ANALYSIS

Annual Cash Flow Calculations,

Annual Cash Flow Analysis, Analysis Period,
Analysis Period Equal to Alternative Lives, Analysis Period a Common
Multiple of
Alternative Lives, Infinite Analysis Period, Using Spreadsheets to
Analyze Loans

Chapter 6

2
5
-
2
8

RATE

OF RETURN ANALYSIS

Internal Rate of Return, Calculating Rate of Return, Future Worth Analysis,
Payback Period Analysis
.

Chapter 7

2
9
-
30

Basic Aspects of

Depreciation, Historical Depreciation Methods: Straight
-
Line Depreciation & Declining Balance Depreciation

Chapter 11

Final Term Exam (Comprehensive)