Course Outline of BS (EE) Degree Program – Spring 2020

Department Department of Electrical Engineering Dept. Code EE

Course Title Engineering Economics Course Code MG222
Pre-requisite(s) Credit Hrs 3

Title Engineering Economy, 7th Edition

Text Book Author Blank L. and Anthony T
Publisher McGraw Hill
Title Contemporary Engineering Economics
Author Chan S. Park
Publisher Pearson
Title Engineering Economic Analysis
Donald G. Newman, Ted G. Eschenbach and Jerome P.
Ref. Book(s) Author
Lavelle
Publisher
Title
Author
Publisher

To understand the economic aspects of engineering which involves the

Course
systematic evaluation of the costs and benefits of proposed technical and
Objective(s):
business projects.

Assigned Program Learning Outcomes (PLOs) Level

PLO-07: An ability to apply reasoning informed by contextual knowledge to

assess societal, health, safety, legal and cultural issues and the consequent R
responsibilities relevant to professional engineering practice and solution to
complex engineering problems.

PLO-08: Apply ethical principles and commit to professional ethics and

responsibilities and norms of engineering practice. R

PLO-05: Modern Tool Usage, an ability to create, select and apply appropriate
techniques, resources, and modern engineering and IT tools, including prediction
and modeling in complex engineering activities, with an understanding of
limitations.
I = Introduction, R = Reinforcement, E = Evaluation, A = Assignment, Q = Quiz, M = Midterm,
F=Final, L = Lab, P = Project, W = Written Report.
 Assessment Taxonomy
No. Course Learning Outcome (CLO) Statements PLO
Tool Level

1 Ability to Compare PW, FW & AW. Q1, M1 C2 7

Ability to Evaluate effective interest rate for equal or

2 M1, F C2, C4, C4 7
unequal lives

3 Ability to apply Benefit/Cost analysis Q2, M2 C2, C3 7

4 Demonstrate Economic Skills to work on excel Q4, A1 P4 5

5 Ability to apply Breakeven analysis Q3, F C2, C3 7

Ability to Arrange balance sheet, Income and cash
6 Q4, F C2, C4, C4 8
flow statement
 Lecture Breakdown
week Course Contents / Topics Chapters CLOs
Definition of economics / concept of scarcity, Economic
goods & free goods, resources, Land, Labor, Capital,
1 1 CLO-01
management, Demand/Supply, equilibrium,
Shortage/Surplus
Forms of business / Interest rate & rate of return /
Inflation / Time value of money / cash flow/
2 1.6-1.11 CLO-01
Minimum acceptable rate of return / Simple &
Compound Interest
F/P and P/F Factors / P/A and A/P Factors / A/F and
3 F/A Factors / Arithmetic Gradient factor / 2.1-2.8 CLO-01
Geometric gradient factor
Uniform shifted series, series with randomly placed
4 amounts, calculation for shifted 3.1-3.5 CLO-01
increasing/decreasing gradients
Nominal and effective interest rates, rate of return
CLO-02
5 analysis, ROR calculation using PW or AW 4.1-4.7
equation
Mutually exclusive alternatives, PW/FW analysis of
6 equal-life alternatives, PW/FW analysis of different- 5.1-5.4 CLO-02
life alternatives
Incremental analysis, differences between private
8.1, 9.1-
7 and public projects / Developing benefit-cost ratios / CLO-03
9.3
Analysis of single project / Analyzing two projects
Handling more than two projects,
8 9.4
CLO-03
Basics of the replacement study, replacement due to
9 obsolescence, replacement and retention decisions 11.1-11.2 CLO-04

10 Lab session on excel 11.3 CLO-04

Breakeven Analysis for single project/between two
11 13.1-13.2 CLO-05
alternatives
Understanding the impact of inflation, PW/FW
12 14.1-14.3 CLO-06
calculations adjusted for inflation
St. line depreciation, declining balance, double
13 16.1-16.4 CLO-06
declining balance, MACRS
Income tax terminology & relation for corp. /
14 17.1-17.3 CLO-06
individual
Income Statement, balance sheet, cash flow
15 Appendix CLO-06
statement
16 Ethics Notes

Assessment Tools Weightage (%)

 Quizzes (4) 10
Assignments (2) 10
Mid I 15
Mid II 15
Final 50