Spring 2006 INEN 303:  Engineering Economic Analysis

 

Hours:  3

 

Contact Info:

Professor Illya V. Hicks

Office:  237N Zachry

Phone:  458-4182

Email:  ivhicks@tamu.edu

Office Hours: 9:30am-10:30am TR or by appointment

TA:  Aldarian Taylor, 303Q Zachry, aldarian@tamu.edu

TA office hours: 10:30-12 MW

 

 

Prerequisites:  Math 152: Engineering Mathematics II

 

Course Description:  Principles of economic equivalence; time value of money; analysis of single and multiple investments; comparison of alternatives; capital recovery and tax implications; certainty; uncertainty; risk analysis; public sector analysis and break-even concepts. 

 

Textbook:  Engineering Economy, L. T. Blank and A. J. Tarquin, Sixth Edition, McGraw-Hill Publishing Company, 2005

http://www.mhhe.com/blank6

Student login username: blankstudent

Student password: blank6e

 

 

 

Supplemental material: 

            Engineering Economy, G. J. Thuesen and W. J. Fabrycky, Prentice-Hall

Economic Analysis for Engineers and Managers, J. C. Sprague and J. D. Whittaker, Prentice-Hall

 

Grading Policy:

            Tests                                        75% (3 including final)

            Quizzes                                    25%

 

TOPICAL OUTLINE

 

Terminology and Cash-Flow Diagrams                                                  Chap. 1

Engineering Economy Factors                                                               Chap. 2

Use of Multiple Engineering Economy Factors                                       Chap. 3

Nominal and Effective Interest Rates                                                                 Chap. 4

Present-Worth Analysis                                                                                    Chap. 5

Annual-Worth Analysis                                                                         Chap. 6

Rate of Return Computations (Single and Multiple Projects)                  Chap. 7-8

Benefit/Cost Ratio                                                                                            Chap. 9

Sources of Funds (Bonds)                                                                                Chap. 10

Replacement Analysis                                                                                       Chap. 11

Selection of Projects under budget limitations                                        Chap. 12

Breakeven Analysis                                                                                          Chap. 13

Inflation                                                                                                            Chap. 14

Capital Recovery and Depletion Models                                                           Chap. 16

After-Tax Economic Analysis                                                                Chap. 17

Sensitivity Analysis                                                                                            Chap. 18

 

                       

Groups:  The students will divide into groups of 2 or 3 for homework and group quizzes.

 

Homework Policy:  Homework will not be turned in but it is your responsibility to learn from the problems.

 

Americans with Disabilities Act Statement:

If you believe you have a disability requiring an accommodation, please contact the Department of Student Life, Services for Students with Disabilities in Room 126 of the Koldus Building (845-1637).