# 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:

1. A good knowledge of formulating and solving algebraic equations.
2. Differential and integral calculus. (MATH 1230).

## Long Term Behaviors:

### In the future, students completing this course can:

1. Use spreadsheet analysis for solving financial problems of all types.
2. Be used as financial evaluators to judge the soundness in the selection of projects (from a large list) when working with constrained resources.
3. Be asked to advise on suitability of a specific depreciation method best suited for a given situation in order to minimize taxes.
4. 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:

### 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

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