University of Hail
College of Business Administration
Economics and Finance Department
Syllabus-ECON-403
Course Name : Engineering Economics
Course Number : ECON-403
Credit Hours : 3
Instructor Name : Waleed Y. Alshaer
Office Number : S066
Office Phone Number : 2111
E-mail : w.alshaer@uoh.edu.sa
WebPage: http://faculty.uoh.edu.sa/w.alshaer
Aims:
This module aims to provide students a comprehensive introduction to application of
fundamental concepts and techniques of economic analysis to project evaluation in engineering
practice. Emphasis on interest and money relationships, methods for decision making among
alternatives, depreciation, break-even analysis, minimum cost formula, and capital budgeting.
Teaching Method:
Duration: 42 hours, 3 hours per week, the last week is reserved for revision and question answer.
Learning Outcomes:
A student completing this module should be aware about:
1. The basic fundamentals of Economic Problems and its Solutions
2. Fundamentals of Engineering Economics
3. Economic Analysis of Manufacturing, Service and IT sectors projects
4. Methods of economic evaluation of engineering projects
5. Methods of Economic Decision Making
Text Book: ‘Engineering Economy’, 14th Edition, by William G. Sullican, Elin M. Wicks and C.
Patrick Koelling, ISBN -10:0136142974, ISBN-13: 9780136142973, Published by Prentice Hall,
Copyright: 2009
Grading Policy:
The students are expected to study both the text book and the handouts covered in the class.
Grades are based upon the following workload:
Exam 1 & Exam 2: 20%
Quizzes: 30%
Final: 50%
Indicative Contents:
Week Chapter Indicative Contents
1st 1 Understanding Economics and Economic Problems
2nd 2 Economic Models
a. Introduction
b. Principles
c. Use of Computer software for Engineering
Economic Analysis
Quiz-1
3rd 3 Understanding Economics and Economic Problems
4th 4 Introduction to Engineering economics
5th & 6th 5 Cost Concepts
i. Understanding Cost
ii. Initial Cost
iii. Determinants of Cost
iv. Cost estimation Techniques –SET model, Integrated
approach, PCE, Cost estimation and Design
Major -1 Exam
7th & 8th 6 Determining Selling Price
9th & 10th 7 Profit
Quiz-2
11th & 12th 8 Interest and money relation –The time value of Money
13th 9 Project Evaluation – Cost Vs Benefits
Major -2 Exam
14th 10 Breakeven Analysis
15th 11 Risk Analysis
16th 12 Capital Budgeting
FINAL EXAM
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