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IME 3200 - Engineering Cost Analysis


Catalog Description:

A course in engineering economics and the economic comparison of alternative technical systems. Includes interest, equivalence, depreciation, taxes, and risk. NOT FOR ENGINEERING CREDIT.

Prerequisites & Corequisites: Prerequisite: MATH 1230. Recommended, MATH 1220 or MATH 2000 or MATH 1700.

Credits: 3 hours

Lecture Hours - Laboratory Hours: (3 to 0)


Prerequisites by Topic:

  1. A good knowledge of formulating and solving algebraic equations.
  2. Differential and integral calculus. (MATH 1230).
  3. Understanding and familiarity with computer programming. (Junior Standing).

Course Objectives:

At the end of the semester, the student should be able to:

  1. Determine the time value of money for any type of cash flow (b, f).
  2. Evaluate multiple alternatives to determine the best one (b, f).
  3. Determine the depreciation of a tangible asset using a variety of methods (b, i).
  4. Calculate income taxes for a corporation or an individual (b, f).
  5. Use spreadsheets for financial analysis (a, f).

Letters in parentheses refer to the TAC of ABET 2001 criteria.


Performance Criteria:

Objective 1

Be able to determine the time value of money for any given cash flow [1, 2, 3, 4, 5].

Objective 2

Be able to evaluate multiple alternatives to determine the best alternative using several different methods [2, 3, 4, 5].

Objective 3

Be able to compute depreciation of a tangible asset by a variety of methods [3, 4, 5].

Objective 4

Be able to compute the income taxes for a corporation and for an individual [3, 4].

Objective 5

Have the ability of using computerized spreadsheets for analyzing and evaluating a variety of financial problems [5].

Numbers in brackets refer to the method of evaluation as listed in the previous section.


Textbooks:

Newnan, Donald G., Jerome P. Lavelle, and Ted G. Eschenbach, Engineering Economic Analysis, (New York: Oxford University Press, 2009, Tenth Edition).

References

Collier, Courtland A. and Glagola, Charles R., Enginering Economic and Cost Analysis, (Menlo Park: Addison Wesley Longman, Inc., 1998, Third Edition).
[TA177.4 .C65 1998]

Sullivan, William G., Wicks, Elin M., and James T. Luxhoj, Engineering Economy, (Upper Saddle River: Prentice-Hall, 2003, Twelfth Edition). [TA177.4 .E539 2003]

Blank, Leland T. and Tarquin, Anthony J., Engineering Economy, (McGraw Hill, 1998, Fourth Edition). [TA177.4 .B58 1998]


Course Coordinator:

Kailash Bafna, Ph.D.

Industrial and Manufacturing Engineering
Western Michigan University
E-212 Parkview Campus
Kalamazoo, Michigan 49008-5336
Phone: (269) 276-3355
Email: kailash.bafna@wmich.edu


Revision Date: Fall 2009

 

Department of Industrial and Manufacturing Engineering
Western Michigan University
Kalamazoo MI 49008-5336 USA
(269) 276-3350 | (269) 276-3353 Fax



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