course outline - Indiana University

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COURSE DESCRIPTION: Examines the concepts and techniques of analysis useful in
evaluating the worth of systems, products, and services in relation to their cost. The
objective is to help the students grasp the significance of the economic aspects of
engineering and to become proficient in the evaluation of engineering proposals in
terms of worth and cost. Project analysis will require computer proficiency.
TEXTBOOKS: Bowman, Michael S. Applied Economic Analysis for Technologists,
Engineers, and Managers, 2nd Edition (ISBN-13: 9780130945112)
Bowman, Michael S. Student Solutions Manual & Study Guide, 2nd
Edition (ISBN-13: 9780130449900)
PREREQUISITES: IET 10400 Industrial Organization or consent of the instructor.
COMPUTER RESOURCES: OnCourse, Microsoft Excel, Adobe Flash
INSTRUCTOR: Professor Ken Rennels, P.E.
Office: ET 201A
Phone: (317) 274-0829
Fax: (317) 278-0789
E-mail: [email protected]
Homework assignments ...............20%
Examinations ................................50%
Case Studies..................................15%
Project ..........................................15%
93.0 to 100%
90.0 to 92.9%
87.0 to 89.9%
83.0 to 86.9%
80.0 to 82.9%
78.0 to 79.9%
73.0 to 77.9%
70.0 to 72.9%
67.0 to 69.9%
63.0 to 66.9%
60.0 to 62.9%
0 to 59.9%
ADA COMPLIANCE: Adaptive Educational Services (AES) provides accommodations for
students with special challenges or disabilities that may affect their classroom
performance. If you are eligible you may register with AES by calling 317-274-3241
and making an appointment; or visiting them in Taylor Hall, UC Suite 100. Visit for more information.
COURSE PROCEDURES: This course is being taught on a self-learning basis. This course
syllabus details the material that will be covered by the course and the course
schedule. Materials including lecture notes, supplemental materials and reference
materials will be placed on OnCourse CL which is accessible at: For more information regarding using this tool, the
OnCourse CL Quick Start Guide for Students can be accessed at:
It is the responsibility of each student to manage their time effectively to meet the
schedule requirements and submit coursework on time. The following URL is a link
to a Distance Education Student Primer which will be helpful in understanding this
course’s delivery method: Additionally, a set
of behaviors for distance education classes is included in this syllabus for your
Testing for this course will be on-line. Please review the academic integrity
information below. The course also incorporates a project which will entail
individual effort. Your instructor will be readily available via IUPUI email.
CLASS PROTOCOL and ACADEMIC INTEGRITY: The school expects all students to follow
the established standards of academic integrity in its courses. Cheating or
plagiarism (electronic or otherwise) will not be tolerated, and will result in an F for
the course, expulsion from the class, and possible university discipline. No
derogatory comments about or towards any member of the class will be tolerated in
any class or on-line discussion group. Information regarding the Student Code of Conduct
can be found at:
LATE WORK POLICY: Late work will be downgraded one letter grade immediately
following the due date and time. No work will be accepted 24 hours after these
times and dates. Exceptions are given to only those who have pre-arranged with
the instructor and have provided acceptable documentation. Early communication is
imperative and encouraged.
OWNERSHIP of WORK PRODUCED in IET 35000: In taking this course you are permitting
the instructor to use your work produced in IET 35000 as an example of work done
in this class for the purposes of ABET accreditation, teaching resources, research,
publication and promotional material. This may involve the reproduction of your
work as well. Should you not be in agreement with this, please notify the instructor
“A” grades will be given for outstanding, exemplary and exceptional work depicting
over and above what is required of the respective project or assignment. Student
demonstrates the ability to evaluate, critique, and/or design work of exceptional
“B” grades will be given for good work, depicting an above average understanding.
Student demonstrates the ability to revise and synthesize work or tasks.
“C” grades will be given for average work or work that solely meets the project
criteria without an obvious effort to exceed expectations. Student demonstrates the
ability to apply and reproduce work or tasks.
Work that is lacking or deficient will receive a “D” or “F” grade.
Students will be given an automatic “W” (withdrawal) if they drop the class on time
according to the Schedule of Classes. No automatic "W" grade will be given after
the date specified in the class schedule unless the student is in passing status.
An incomplete (I) grade will only be given in exceptional circumstances where the
student is in passing status but not able to complete the course requirements due to
an excuse which must be formally documented and be acceptable by the University
1. Visit the classroom web-site (Oncourse) at a specific frequency. This may vary
from person to person. Perhaps once per week for a long stretch will work for
you. Some students visit the site almost everyday for short periods. Putting
time in the class is essential for success. You cannot pass the class by waiting
until the end of the semester to get started or to complete the majority or
assignments. Recognize that, for some people, it is natural to procrastinate
regarding coursework when there is no set meeting time. You must fight this
urge, if it is your personality, in order to be successful. Students who do not set
up a planned schedule to visit the online classroom are far less likely to pass or
earn a grade which reflects their actual ability.
2. It is important to recognize that your instructor would like to electronically
communicate with you and cannot do so unless you log into the class. Students
who stay away from Oncourse for long periods (in excess of one week) are
usually at a disadvantage from this lack of communication. Students may miss
announcements and reminders and may find deadlines abruptly upon them - or
missed. It is generally unwise to allow a gap of longer than one week or so
between visits to the online environment. Students who do not log in for
periods of longer than two weeks, without notice or explanation to the
instructor, will be contacted by phone or mail and may be asked to withdraw
from the course.
2. Follow the syllabus by looking at the learning units and working in the text as
needed. The material will not flow from the keyboard, through your fingertips
and into your body. You must read and process the information provided. You
will need to visit all links and process the information provided in redirected
3. Complete the homework and be aware of deadlines for these assignments.
4. Participate in the class following the guidelines and policies set by the
instructor. Understand what is defined by the university as inappropriate
5. PREPARE for exams as you would for a traditional on-campus class..
ADMINISTRATIVE WITHDRAWAL: A basic requirement of this course is that you will
participate in class and conscientiously complete the assignments. Keep in touch
with me if you are unable to attend complete an assignment on time. If you do not
submit more than half of the required work during the first four weeks of the
semester without contacting me, you will be administratively withdrawn from this
section. Administrative withdrawal may have academic, financial, and financial aid
implications. Administrative withdrawal will take place after the full refund period,
and if you are administratively withdrawn from the course you will not be eligible for
a tuition refund. If you have questions about the administrative withdrawal policy at
any point during the semester, please contact me.
 Provide a basic introduction to economic concepts.
 Build proficiency in the ROI methods for evaluation of engineering proposals.
LEARNING OBJECTIVES: After completion of this course, the students should be able to:
1. Apply financial statements and accounting basics related to basic and advanced
economic analysis (a,b,f).
2. Determine and apply appropriate techniques for depreciation and inventory
economic analysis (a,b,f).
3. Apply Time Value of Money techniques to analyze, select, monitor and evaluate
projects and investments (a,b,f).
4. Demonstrate consideration for the dual goals of mathematical economic analysis
problem solving and external factors of organizational, human, and other
nonmathematical influences on economic decision making (a,b,e,f,k).
5. Apply traditional and contemporary economic analysis technique to continuous
financial improvement. (k)
TCM WRITING Center: Need or want help with your writing or speaking assignments?
The TCM Writing Center, located in ET 232, offers free tutoring to E&T students on their
writing and speaking needs. I encourage you to use the Writing Center’s services. You
can sign-up for tutoring sessions by going to
If the tutor is not working with another student, walk-ins are welcome. Call 317-2781311 if you have questions or would like more information.
IUPUI STUDENT ADVOCATE: Do you have a problem you don’t know how to solve? Is
there information you cannot find? Do you have a question that needs an answer or a
problem that is affecting your class attendance? The Student Advocate Office is here to
help! I will answer your questions, direct you to the appropriate departments and
people, familiarize you with university policies and procedures, and give you guidance as
you look at ways to solve problems and make choices. The Student Advocate Office is
can be contacted by phone at 317-278-7594 or email at [email protected] For more
information, see the Student Advocate website at:
IUPUI COUNSELING: During the semester, if you find that life stressors are interfering with
your academic or personal success, consider contacting Counseling and Psychological
Services (CAPS). All IUPUI students are eligible for counseling services at minimal
fees. CAPS also performs evaluations for learning disorders and ADHD; fees are charged
for testing. CAPS is located in Walker Plaza, 719 Indiana Avenue Suite 220 and can be
contacted by phone (317-274-2548) or via email: [email protected] For more
information, see the CAPS web-site at:
Week 1
January 13
Chapter 1
Course Introduction
Introduction to Financial Decisions.
Problem Set #1
Week 2
January 20
Chapter 2
Introduction to Financial Statements
and the Accounting Equation.
Problem Set #2
Week 3
January 27
Chapter 3
The Accounting Equation—
Depreciation, Inventory, and Ratios.
Problem Set #3
Week 4
February 3
Case Study #1
Week 5
February 10
Test #1 – Chapters 1, 2 and 3
Week 6
February 17
Chapter 4
Return on Investment and SinglePayment Calculations.
Problem Set #4
Week 7
February 24
Chapter 5
Annual Amount and Gradient
Problem Set #5
Week 8
March 3
Chapter 6
Time Value of Money Applications.
Problem Set #6
Week 9
March 10
Chapter 7
Analyzing, Selecting, Monitoring, and
Evaluating Projects and Investments.
Problem Set #7
March 17
through 21
Spring Break
Week 10
March 24
Case Study #2
Week 11
March 31
Test #2 – Chapters 4, 5, 6 and 7
Week 12
April 7
Chapter 8
Breakeven Analysis.
Problem Set #8
Week 13
April 14
Chapter 9
Minimum Cost Analysis.
Problem Set #9
Week 14
April 21
Case Study #3
Week 15
April 28
Project Due
Week 16
May 5
Test #3 – Chapters 8 and 9