Economic decision making from an engineering perspective. This course is designed to provide undergraduate engineering students with sufficient knowledge to perform engineering economy studies. Topics covered include time value of money, decision making criteria, break-even studies, depreciation and taxes, inflation, and life cycle cost analysis.

Prerequisites & Corequisites: Prerequisite: Recommend MATH 1230.

Credits: 2 hours

Lecture Hours - Laboratory Hours: (2 to 0)

Differential and integral Calculus. MATH 1230

At the end of the semester the student will be able to:

1. Formulate and solve time value of money problems. (a)
2. Identify sources of data and apply appropriate techniques to solve economic problems. (e)
3. Understand the importance of making appropriate economic decisions. (f)
4. Recognize the impact of engineering economics decisions in a global and societal context. (h)

[Letter in parenthesis refers to the ABET-TAC criteria]

The students should be able to:

Objective 1

1. Solve various time of money problems.

Objective 2

1. Identify relevant and pertinent data and apply net present value and internal rate of return methods to solve problems.

Objective 3

1. Correctly identify the consequences of inappropriate economic decisions, with respect to after tax income.

Objective 4

1. Correctly identify how engineering economics decisions impact individuals, companies, and society in general.

Engineering Economic Analysis, Newnan, D.G.., Revised Edition, Engineering Press, 9th edition, 2004.

References:

Contemporary Engineering Economics by Chan S. Park, Addison Wesley Publishing Company Inc., 1997.

Principles of Engineering Economy, Grant, E.L., Ireson, W.G., and Leavenworth, R.S., Eighth Edition, Wiley & Sons, 1990.

Bob White, Ph.D., P.E.