Engineering Economics(EM 521)
| Course Code | Course Name | Semester | Theory | Practice | Lab | Credit | ECTS |
|---|---|---|---|---|---|---|---|
| EM 521 | Engineering Economics | 2 | 4 | 0 | 0 | 3 | 8 |
| Prerequisites | |
| Admission Requirements |
| Language of Instruction | Turkish |
| Course Type | Compulsory |
| Course Level | Masters Degree |
| Course Instructor(s) | M. Levent DEMİRCAN ldemircan@gsu.edu.tr (Email) |
| Assistant | |
| Objective |
Engineering economics involves formulating, estimating, and evaluating the economic outcomes when alternatives to accomplish a defined purpose are available. Another way to define engineering economy is as a collection of mathematical techniques that simplify economic comparison. Thus, the course will develop better understanding of the basic theoretical results in engineering economics and their practices. Balanced time to both theory and applications will be spent. There will be such applications on time value of money, present worth analysis and so on. The goals of the course to provide participants with a foundation to: • Develop familiarity with basic results in engineering economics; • Develop a familiarity with mathematical tools used in engineering economics; • Understand the assumptions and the limitations of results in engineering economy, and the questions that result from those; • Develop the ability to understand the technical practices of engineering economics. |
| Content |
Introduction: Foundations of engineering economy Present worth analysis Annual worth analysis Rate of return analysis: single alternatives Rate of return analysis: multiple alternatives (Incremental analysis) Different tools for evaluating alternatives Replacement and retention decisions Selection from independent projects under budget limitation Effects of inflations Depreciation methods After-tax economic analysis |
| Course Learning Outcomes |
1: Explicates the principles of basic engineering economy; 2: Analyzes daily life and business problems based on selection of alternatives by using economic fundamentals; 3: Evaluates the alternatives according to cost or return; 4: Analyzes replacement decisions; 5: Synthesizes after-tax economical data with the help of gained techniques. |
| Teaching and Learning Methods |
Explanation Case Studies |
| References |
Tolga, Ethem ve Kahraman, Cengiz., Mühendislik Ekonomisi, İTÜ Yayınları, No: 1542, 1994 Leland T. Blank, Anthony Tarquin, Basics of Engineering Economy, McGraw Hill, 2007. |
Theory Topics
| Week | Weekly Contents |
|---|---|
| 1 | Introduction: Foundations of engineering economy |
| 2 | Present worth analysis |
| 3 | Annual worth analysis |
| 4 | Rate of return analysis: single alternatives |
| 5 | Rate of return analysis: multiple alternatives (Incremental analysis) |
| 6 | Different tools for evaluating alternatives |
| 7 | Replacement and retention decisions |
| 8 | Selection from independent projects under budget limitation |
| 9 | Effects of inflations |
| 10 | Depreciation methods |
| 11 | After-tax economic analysis |
Practice Topics
| Week | Weekly Contents |
|---|
Contribution to Overall Grade
| Number | Contribution | |
|---|---|---|
| Contribution of in-term studies to overall grade | 9 | 60 |
| Contribution of final exam to overall grade | 1 | 40 |
| Toplam | 10 | 100 |
In-Term Studies
| Number | Contribution | |
|---|---|---|
| Assignments | 6 | 20 |
| Presentation | 0 | 0 |
| Midterm Examinations (including preparation) | 1 | 20 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 1 | 10 |
| Term Paper/ Project | 1 | 10 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Toplam | 9 | 60 |
| No | Program Learning Outcomes | Contribution | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 1 | X | |||||
| 2 | X | |||||
| 3 | X | |||||
| 4 | X | |||||
| 5 | X | |||||
| 6 | X | |||||
| 7 | X | |||||
| 8 | X | |||||
| 9 | X | |||||
| 10 | X | |||||
| 11 | X | |||||
| 12 | X | |||||
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 11 | 4 | 44 |
| Working Hours out of Class | 10 | 3 | 30 |
| Assignments | 6 | 10 | 60 |
| Midterm Examinations (including preparation) | 1 | 12 | 12 |
| Final Examinations (including preparation) | 1 | 18 | 18 |
| Quiz | 1 | 3 | 3 |
| Term Paper/ Project | 1 | 40 | 40 |
| Total Workload | 207 | ||
| Total Workload / 25 | 8.28 | ||
| Credits ECTS | 8 | ||