EGR 303
ENGINEERING ECONOMICS
Fall 2018
Course Objectives: Concepts and methods of engineering economics for decision making in
engineering. In addition to introduction of common methods of present worth analysis, rate of
return evaluation, and decision making under risk, the course will extend engineering economic
concepts to include the impact of taxes, socio-economic and global considerations as well as the
impact of government interactions. The course will also cover some concepts of probability and
statistics to facilitate decision making analysis under uncertainties.
Upon completion of this course students will be able to:
•
•
•
•
•
Use economic tools to make decisions on feasibility of engineering projects.
Realize the impact of taxes on engineering decisions.
Make economic decisions under risk and uncertainty.
Balance profitability of engineering projects vs. their impacts on environment and global
sustainability.
Select among feasible public projects under resource constraints.
Text Book: Sullivan, W.G.; Wicks, E.M.; and Koelling, C.P., Engineering Economy, 16th
Edition, Prentice Hall, 2014.
Other Supporting Materials: Class examples and handouts.
Grading Policy:
First Test
Second Test
Final Exam
Term Project
Homework
20 points
20 points
30 points
15 points
15 points
(October 11th, 2018)**
(November 8th, 2018)**
(Dec. 18th, 2018 – 8am-11am)
** These dates may be subject to change, due to unforeseen adjustments to the schedule.
Additional Notes:
1. No make-up of regular exams or the final exam will be allowed unless a valid,
documented excuse is presented within 3 days of missing the exam. The course
instructor will be the sole person determining the validity of excuses. It is the
responsibility of the student to approach the instructor for a make-up examination.
2. Any form of academic dishonesty in exams and/or homework will result in the
issuance of an F grade for the course and possibly other departmental action. See
Student Handbook and/or UMD General Catalogue for definition of academic
dishonesty. The UMD policy on academic integrity can be found at
http://www.umassd.edu/policies/activepolicylist/academicaffairs/academicinteg
ritypolicyandreportingform/.
3. Class attendance will be taken. Attendance will not count toward your final grade;
however, students who skip lectures seldom do well on their examinations.
4. All homework problems are to be PRINTED IN PENCIL ON ENGINEERING
PAPER* and follow the format described in class at the beginning of the
semester. Homework is due at the beginning of class on the due date – no late
homework will be accepted.
*unless the homework requires the use of programs (such as Microsoft Office), in
which case it should be printed.
5. Please check MyCourses regularly for updated postings. Homework assignments,
due dates, and other course material will be added to the course’s site throughout
the semester.
6. In-class quizzes may be given at any time and without warning, as a means of
evaluating where the class stands in comprehending the material. Quiz grades will
be included in the Homework portion of the final grade.
7. Any requests for exceptions to due dates, the grading system, or exam dates and
times must be submitted to the instructor IN WRITING for approval. If
approved, your request will be returned to you with my initials. Verbal
agreements are easily misunderstood or forgotten, and are therefore not valid.
8. Students with physical, learning, or other disabilities may wish to contact the
Center for Access and Success for assistance and accommodation. For further
information, please contact:
9. According to the university catalogue, an incomplete grade may be given only in
exceptional circumstances at the discretion of the instructor and at the student's
request no more than 48 hours after the final exam or class. The student must be
passing the course at the time of the request or be sufficiently close to passing that
the instructor believes that upon completion of the work, the student will pass the
course. If the work is not completed with one year of recording the I, the grade
will become an F(I).
The incomplete policy for this course is that at least 70% of the course must be
already completed and an exceptional circumstance (i.e. medical issue) must
exist. If you feel you require an incomplete for an exceptional reason, you need to
email me and state your reasons for the incomplete in writing. I will then decide
on a course of action.
Course Contents
Topic
Introduction
Economic analysis as a decision making tool
Time value of money
Decision making for a single project
First Test (October 11th, 2018)
Decision making for multiple projects
Using spread sheets to solve problems
Impacts of taxes and regulations
Public projects evaluation
Sensitivity and breakeven analysis
Second test (November 8th, 2018)
Foreign exchange rates and purchasing power concepts
Economics of environmental and sustainability impacts
Economic analysis under uncertainty
Discussion and presentation of students projects
Sessions
1
1
3
3
1
3
1
3
2
2
1
1
1
2
1
Reading assignments
1 - 16
20 - 51
107 - 166
186 - 222
240 - 287
598 - 614
308 - 355
443 - 467
475 - 493
368-393
Handouts
502 - 538