Tafila Technical University

College of Engineering
Department of Natural Resources and Chemical Engineering

Instructor: Dr. Hisham Al-Rawashdeh Course Name: Engineering economy

Office Hours: Sun,Tues, Th: 11:00 – 12:00 Course Number: 0103360

Email : hiisham_68@yahoo.com Credit Hours: 3

Room Number: Eng. Co llege, Rm 406 Semester:Fall 2019/2020

 Course Description

a. Catalog Description: This course aims to provide students with the necessary understanding of both
technical and managerial issues related to Engineering Economy enabling them to undertake
financial analysis of decision making process in an engineering organization.

b. prerequisites or co-requisites: 0203101 Calculus I.

c. indicate whether a required or elective: "Required".

 Course Objectives
At completing this course the student should be able to:
1. Understand the fundamentals of engineering economy and the basic principles of the time value of

money.

2. Draw the cash-flow diagrams (CFD).

3. Identify and compare different interest rates i.e., simple, compound, MARR, ROR, nominal and effective.

4. Compute equivalent values for time based cash flows of varying complexities.

5. Compare economic alternatives based on equivalent present worth (PW), future worth (FW), capitalized

cost (CC), payback period (PbP), annual worth (AW) values and Benefit cost ratios (B/C).

6. Compute the internal rate of return (IRR) and evaluate an economic alternative on the basis of IRR.
Assessment :

Test Date Percentage

First Exam:25% Sunday 27/10/2019 25%
Second Exam: Sunday 8/12/2019 25%
Final E xam TBA 50%
Total 100%

Text Book:

Engineering Economy, Blank, Leland T. and Tarquin, Anthony J. 7th Edition., 2012, McGraw-Hill, ISBN 978-
0-07-337630-1.

References:
1. Contemporary Engineering Economics, 4/E Chan S. Park, 2007, Prentice Hall, ISBN 0131876287.
2. Principles Of Engineering Economic Analysis, 4/e, John A. White, Kenneth F. Case, David B. Pratt, and
Marvin H. Agee, John Willey and sons, 1998, ISBN 0471110272.
3. Class notes and handouts submitted by the instructor.

Class Schedule: The class meets three times per week during fall semester 2019/2020.