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MSE 304
Khashayar “Kash” Behdinan
This course has been designed to primarily contribute to students’ learning to:
Formulate and solve the time-value of money for any given cash flow.
Use methods such as present worth, annual worth, B/C ratio, and internal rate of return methods to solve economic
problems.
Evaluate multiple alternatives to determine the best alternative using different methods.
Apply depreciation methods to and evaluate after-tax analysis for single and multiple alternatives.
Identify relevant and pertinent data to perform replacement decisions.
Recognize inflation and its effect on engineering economy decisions.
Apply communicational skills – through writing effective reports and presenting term projects.
Course Objectives
Course Plan
Prerequisite: MATH 150B and completion of the lower division writing
requirement.
The
systematic
evaluation
of
the
economic
benefits
and
costs
of
projects
involving
engineering
design
and
analysis.
Economic
decision-making
in
an
environment
of
limited
resources
and
uncertainty.
Present
economy,
the
economy
of
multi-year
projects,
selection
among
competing
and
independent
alternatives,
sensitivity
of
outcomes
to
input
parameters,
before-
and
after-tax
analyses,
replacement
economy,
inflation, and breakeven analysis in production environments. (Design units: 0.5)
COURSE DESCRIPTION
Leland
T.
Blank
and
Anthony
J.
Tarquin,
Engineering
Economy,
8th
Edition,
McGraw-Hill,
ISBN-13: 978-0073523439
TextBook
Engineering Economics
Introduction to Engineering Economy & Review
of the Syllabus
Foundations of Engineering Economy-
continued
How Time and Interest Affect Money
How Time and Interest Affect Money-
continued
Combining Factors and Spreadsheet Functions
Combining Factors and Spreadsheet Functions-
continued
Nominal and Effective Interest Rates
Present Worth Analysis
Annual Worth Analysis
Midterm Exam Review
Rate of Return Analysis: One Project
Rate of Return Analysis: Multiple Alternatives
Benefit-Cost Ratio Analysis
Replacement Analysis
Effect of Inflation
Depreciation Methods
Class Project Presentations
Final exam review
Cash Flow Analysis for Investment
Student Projects
