Advanced Engineering Economy(IND 511)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| IND 511 | Advanced Engineering Economy | 1 | 3 | 0 | 0 | 3 | 6 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | English |
| Course Type | Compulsory |
| Course Level | Masters Degree |
| Course Instructor(s) | E. Ertuğrul KARSAK ekarsak@gsu.edu.tr (Email) |
| Assistant | |
| Objective | |
| Content |
- Introduction and organization - Review of discrete cash flow models - Uniform and gradient series - Nominal versus effective interest rates - Continuous compounding and continuous cash flows - Mid-period convention - Time-dependent interest rates - Loans - Laplace, Z and Mellin transforms in cash flow modeling - Equivalent methods for comparing alternatives (single project) - Present worth, future worth and annual worth methods - Benefit-cost ratio method - Rate of return method and variations - Internal rate of return method - External rate of return method - Decision rules for selecting among multiple alternatives - Present worth, future worth and annual worth methods - Benefit-cost ratio method - Internal rate of return method - Approximate and supplementary methods - Payback method - Profitability index - Depreciation methods - After-tax economy studies - Index numbers - Incorporating inflation into economic analysis - Replacement models - Retirement with identical replacement - Generalized replacement model - Dynamic programming formulations - Mathematical programming formulations for capital budgeting - Risk analysis - Statistical moments of random variables - Random cash flows - Random project life - Decision criteria and methods for risk and uncertainty - Fuzzy discounted cash flow analysis - Introduction to real options approach |
| Course Learning Outcomes |
LO 1: Cash flow models. LO 2: Effects of inflation on economic analysis. LO 3: Replacement models. LO 4: Mathematical programming formulations for capital budgeting. LO 5: Decision criteria and methods for risk and uncertainty LO 6: Multi-attribute and multi-objective decision making for investment analysis. LO 7: Fuzzy cash flow analysis. |
| Teaching and Learning Methods | Lecture; problem sessions; discussion; self study. |
| References |
- Park, C.S., Sharp-Bette, G.P., Advanced Engineering Economics, John Wiley & Sons, 1990. - Fleischer, G.A., Introduction to Engineering Economy, PWS Publishing Company, Boston, 1994. |
Theory Topics
| Week | Weekly Contents |
|---|
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Toplam | 0 | 0 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Toplam | 0 | 0 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Total Workload | 0 | ||
| Total Workload / 25 | 0,00 | ||
| Credits ECTS | 0 | ||