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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: Recommended, MATH 1220 or MATH 2000 or MATH 1700.
Credits: 3 hours
Lecture Hours - Laboratory Hours: (3 - 0)
Prerequisites by Topic:
- A good knowledge of formulating and solving algebraic equations.
- Differential and integral calculus. (MATH 1230).
Long Term Behaviors:
In the future, students completing this course can:
- Use spreadsheet analysis for solving financial problems of all types.
- Be used as financial evaluators to judge the soundness in the selection of projects (from a large list) when working with constrained resources.
- Be asked to advise on suitability of a specific depreciation method best suited for a given situation in order to minimize taxes.
- Regularly make financial investment decisions consistently resulting in above average returns on their personal portfolio with reduced tax liabilities.
Course Objectives, Performance Criteria, and Outcomes:
Course Objectives |
ABET-TAC Outcomes2 |
Performance Criteria Measured1 |
|
|---|---|---|---|
| Evaluate multiple alternatives using time value of money techniques | f* | F3: Applies tools and modeling techniques suited to the problem |
|
| Use spreadsheets for financial analysis | a* | A2: Demonstrates the use of one or more tools (CAD, Word, Excel, PowerPoint, CAE) in presentation, analysis, research of a design |
|
| Solve real-world problems in engineering cost analysis | f* | F4: Did you improve your ability to solve real problems in this field? |
|
| Determine depreciation of a tangible asset using a variety of methods | b | ||
| Calculate income taxes for a corporation or an individual | i |
Performance Criteria1: IME performance criteria may be found at http://www.wmich.edu/ime/performance-criteria.html
ABET-TAC Outcomes2: Outcomes may be found at http://www.abet.org/
*results tracked in ABET course notebooks
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
Western Michigan University
E-212 Parkview Campus
Kalamazoo, Michigan 49008-5336
Phone: 276-3355
Email: kailash.bafna@wmich.edu
Revision Date: Summer 2011