ECON 320
Engineering Economics
Instructor: Mahmut Ali GÖKÇE
Office: A 412
Office Hours: Wednesdays 13:30-15:30 or by appointment
Course Webpage: http://homes.ieu.edu.tr/~agokce/courses/econ320
Class Hours: Section 1: Wednesday 08:30 - 11:20 Classroom: M109
Section 2: Monday 08:30 - 11:20 Classroom: C506
Course Objectives:
To introduce the fundamental concepts of economics/finance/costing and to explain
how these will affect the functioning of an engineering company and contribute to
decision making in engineering operations. Throughout the course, students are
expected
To understand the time value of money and principles of engineering economics
To develop skills to perform economic analysis of various engineering projects
To gain the ability to make informed financial decisions as a project
evaluation team member or project manager
Learn and use basic concepts for dealing with risk and uncertainty in project
outcomes
Practice engineering report writing, and written and oral communication skills
To built critical decision making tools for making appropriate personal,
private or public economic and financial decisions
Requirements: Calculus and Probability Theory are required topics. Homeworks and
exams are prepared assuming you have knowledge of Spreadsheet calculations and a
scientific calculator.
Course outline:
LEC # DATE SUBJECTS KEY DATES
1 24(26) Sep. Engineering Economic Decisions ()
LEC # DATE SUBJECTS KEY DATES
2007
2 1 (3) Oct. Time Value of Money ()
3 8 (10)Oct. Factors ()
Homework 1 due
4 15 (17) Oct. Understanding Money Management ()
(Solutions)
Homework 2 due
5 22 (29) Oct. Present-Worth Analysis ()
(Solutions)
Annual Equivalence Analysis () Homework 3 due
6 29 (31) Oct.
Review (Solutions)
24 March Saturday- 9:00-11:00 am, (Building C, 3rd floor)
7 30 March Exam Review
8 5(6) Apr. Rate-of-Return Analysis ()
9 12(13) Apr. Rate-of-Return Analysis
10 19(20) Apr. Equivalance calculations under inflation ()
Homework 4 due
11 26(27) Apr. Accounting for Depreciation and Income Taxes ()
(Solutions)
12 3(4) May Project Cash Flow Analysis ()
5 May Exam 2 - Saturday 9:30-11:20 (Exam prep. Matl.)
13 10(11) May Project Cash Flow Analysis ()
14 17(18) May Decision making under uncertainty ()
Homework 5 due
15 24(25) May Review for Final Exam
(Solutions)
Final Exam To be Announced
Textbook: Fundamentals of Engineering Economics, 3rd ed., S. Park Chan, Prentice-
Hall.
Reference textbooks:
Engineering Economy, Leland Blank, Anthony Tarquin, McGraw-Hill
Contemporary Engineering Economics, S. Park Chan, 3rd ed., Prentice-Hall.
Lecture notes:
Will be posted on course website and/or handed out in class as needed.
Assignments:
Homework will be posted weekly on the course web site
(http://homes.ieu.edu.tr/~agokce/courses/econ320), and will be announced in class. If you
don’t understand a homework problem or have any questions about the material, please come and
see me. Answers to the homework problems will be posted on the course website.
Course Grading:
Performance shown in homework, quizzes, exams and participation make up an important part of
instructor's final opinion. Grades will be changed only when an error has been made;
negotiation is not appropriate.
Grading Percent
Midterm 30
Final 40
Homeworks 20
Participation 5
Attendance 5
Attendance:
Attendance is required at all times. When assigning the final grade, I will consider class
involvement and participation when determining the grade. This just means being involved
with the learning process, asking questions when things are not clear, and seeking help
from me or a tutor if necessary. It also suggests regular attendance.
Announcements: Announcements will be given in class, posted on the course website.
