ISE 311 Engineering Economic Analysis
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ISE 311 001 Engineering Economic Analysis
Course Syllabus, Fall 2022
Updated August 19, 2022
Seated
4:30pm – 5:45pm Mo, We
216 Poe Hall
1. COURSE INFORMATION
Instructor: Chris Irwin
Office: Fitts-Woolard Hall 4121
Office Hours: By Appointment
Phone: (office) 919-557-6824
Email: ctirwin@ncsu.edu
(place in the subject line “ISE 311”)
Teaching Assistants: Note that each Teaching Assistant has been assigned a specific group of students
based upon the first letter of their last name. Please get to know your TA.
Sudhir Gupta skgupta3@ncsu.edu
Room:
Office Hours: or by appointment
Students:
Maria Alejandra Cabarcas Romero mcabarc@ncsu.edu
Room:
Office Hours: or by appointment
Students:
Bibhuti Sarangi bbsarang@ncsu.edu
Room:
Office Hours: or by appointment
Students:
Rithika Shivkumar rshivku@ncsu.edu
Room:
Office Hours: or by appointment
Students:
2. REQUIRED RESOURCES
Textbook: Engineering Economic Analysis, 14th Edition, ISBN: 978-0-19-093191-9. Newnan,
Eschenbach, Lavelle and Eschenbach (2020). The use of other editions is acceptable, but be warned that
some of the assigned homework problems are different in older editions. If you choose to use an edition
that does not have the assigned problems listed then it is your responsibility to identify and turn in the
correct homework assignment. This semester all homework assignments will be made on Moodle. The
assignment will be downloaded and submitted using the class’s Moodle website. If homework is assigned
from the textbook, the problem numbers for the 14th edition will be listed on Moodle. No description of
the problem other than the problem number will be listed. If you are using a different edition, it is your
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ISE 311 Engineering Economic Analysis
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responsibility to locate the same problems in your edition. The TA’s will not be providing any copies of
the problems.
Important Notice Concerning Hardware: Bring textbook/interest rate tables and +/calculator to each class session. No financial or calculators capable of financial functions are allowed.
Problems performed with financial calculators will not be considered correct due to the differing answers.
In addition, all problems will utilize the interest rate tables – no formulas should be used unless the
interest rate is not present in the interest rate tables.
Website for Interest Rate Tables: Oxford Press has provided a PDF of the interest rate tables used in
this class. It can be located at the following link:
http://global.oup.com/us/companion.websites/9780199778126/pdf/Appendix_C_CITables.pdf
3. COURSE CATALOG DESCRIPTION
ISE 311, Engineering Economic Analysis, 3(3-0), Preq: MA 141. Engineering and managerial decision
making. The theory of interest and its uses. Equivalent annual costs, present worth, internal rates of
return, and benefit/cost ratios. Accounting depreciation and its tax effects. Economic lot size and similar
cost minimization models. Sensitivity analysis. Cost dichotomies: fixed vs. variable, and incremental vs.
sunk, use of accounting data. Replacement theory and economic life. Engineering examples.
4. COURSE LEARNING OBJECTIVES
This course is designed to expose students to the topic of Engineering Economic Analysis. Nearly every
decision that engineers make will have an “economic” component. Examples might include: What is the
manufacturing cost of the use of a particular component in the design of a new product? What are the
savings if we implement this new machinery in our warehousing facility? What are the costs to provide a
life-long warranty on our new product? What materials should I use in the design of this artificial heart
valve that ensures dependable and safe characteristics to the patient, while being affordable? What are the
environmental costs associated with this product? How can this product be designed to degrade at the
dump and maintain its functionality at a specified sales-price point? As engineers it is important to
understand the impact that economic considerations have on engineering design and the decision making
process. After completing this course you will be able to:
• Understand the Engineering Decision Making Process
• Have Knowledge of Engineering Cost Concepts
• Understand the Discounted Cash Flow Analysis Process
• Evaluate Single Projects and Sets of Alternatives
• Incorporate the Effects of Inflation in DCFA
• Perform Classic Replacement Analyses
• Understand the Concepts of Engineering Estimating
• Understand Public Sector Evaluation Methods
• Understand Depreciation and Income Taxes Effects
• Understand Basics of Accounting for Engineers
• Use spreadsheets to model/solve EEA Problems
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ISE 311 Engineering Economic Analysis
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5. COURSE OUTLINE
Please note that this schedule may change based upon the progression of the class. Daily class attendance
will insure that any changes to this schedule will be duly noted. It is the responsibility of the student to be
aware of any changes to the following schedule. See the Moodle site for schedule.
6. COURSE POLICIES AND PROCEDURES
The purpose of this section is to outline the policies and procedures that will apply to ISE 311. Please read
and understand this material.
(a) Daily Work:
a. Daily work consists of randomly collected homework assignments and pop quizzes (both
in-class and out-of-class) throughout the semester.
b. There will be a total of ten (10) homework assignments selected for grading that total 5%
of the final grade.
c. There will be a total of five (5) in-class quizzes that total 5% of the final grade.
d. There will be between three (3) to six (6) out-of-class quizzes that total 5% of the final
grade.
(b) Spreadsheet Assignments: In this course there will be a few homework assignments that will be
solved using computer spreadsheets. The spreadsheet assignments will be given to re-enforce a
particular topic being learned as well as to develop skills in the use of spreadsheets for problem
solving in engineering applications. You will be required to use Microsoft Excel as your
spreadsheet program. There will be from three (3) to six (6) of these assignments throughout the
semester.
(c) Homework:
a. Homework problems will be assigned on a daily basis and available for download from the
Moodle website.
b. The student should attempt to solve all of the problems assigned.
c. Any homework assignments that are randomly collected will most often be graded based
on “effort” and not necessarily if the student obtained the correct answer.
d. As previously stated homework will be posted on Moodle and the assignments will be
named by number, i.e. homework assignment one would be HW-1, second homework
HW-2, etc. Please label all homework accordingly.
e. Also, the student is required to label all problems, show all work and box (place your
answer inside in a rectangular box) your answers on all submitted homework. Providing
only answers without showing any work or not boxing your answer will result in that
answer marked as incorrect.
f. Homework will be assigned and due before the next Monday of the following week that
the homework is assigned, i.e. if HW-8 is assigned on a Monday then it would be due on
Sunday at Midnight before the next Monday. If it is assigned on Wednesday then it would
be due on Sunday at Midnight before the next Monday.
g. All homework will be submitted for grading using the Moodle website using the PDF file
format (no other formats will be accepted). No emailed, texted or physical copies will be
accepted.
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ISE 311 Engineering Economic Analysis
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h. Each homework assignment is graded on a 10 point scale and not a 100 point scale.
i. After the homework grade has been posted, you have one (1) week to request a grade
change. After that period, no requests will be accepted.
j. No late homework will be accepted.
(d) In-class Quiz:
a. Quizzes will occur at random intervals throughout the semester.
b. All of these quizzes will be “open book” unless otherwise indicated during class
announcements.
c. You are required to bring pencil/pen, +/- calculator, one (1) clean sheet of paper, textbook/
interest rate tables and spare batteries to all classes in order to properly complete the quiz.
d. Students that do not bring their textbook/interest rate tables to class cannot successfully
complete the quiz and will be graded appropriately.
e. Each quiz is graded on a 10 point scale and not a 100 point scale.
f. After the quiz grade has been posted, you have one (1) week to request a grade change.
After that period, no requests will be accepted.
(e) Out-of-class Quiz: (for the Fall 2022 semester no out-of-class quizzes will be given)
a. Quizzes will occur at random intervals throughout the semester.
b. All of these quizzes will be “open book.”
c. These quizzes will be timed Moodle quizzes where you will be presented with an
economic problem that you will solve using the Interest Tables found in the course
textbook and using Microsoft Excel spreadsheets. Both solutions will be submitted for
grading via Moodle.
d. Each quiz is graded on a 10 point scale and not a 100 point scale.
e. After the quiz grade has been posted, you have one (1) week to request a grade change.
After that period, no requests will be accepted.
(f) Course Website:
a. All materials for this course will be posted on Moodle.
b. Pay attention to the Moodle schedule – it may have to change – and it is the student’s
responsibility to be aware of any changes.
c. During the semester announcements will be made using Moodle via email.
d. A test announcement will be made indicating that an email has been sent. It is the
student’s responsibility to notify if they are not receiving the email announcements.
e. If you need to correspond via email, please note that you must place in the subject line
“ISE 311” in order for your email to be placed in the class mailbox. Forgetting to use the
“ISE 311” in the subject line will result in your email being placed in a general mailbox or
sent to an even more sinister mailbox.
(g) Class Attendance: Class attendance is highly encouraged but not mandatory, and will only count
against you if one of the randomly collected assignments is taken up the day that you miss
(unexcused absence). See the University policy at:
www.ncsu.edu/policies/academic_affairs/courses_undergrad/REG02.20.3.php.
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ISE 311 Engineering Economic Analysis
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(h) Examinations:
a. Three (3) Hourly Examinations and one (1) Comprehensive Final Examination have been
scheduled and appear on the course Moodle site.
b. All of these exams will be “open book” exams unless otherwise indicated before the exam
on Moodle and during class announcements.
c. You are allowed to bring pencil/pen, +/- calculator, one (1) page formula sheet,
textbook/interest rate tables and spare batteries to all exams.
d. The student is required to label all problems, show all work and box (place your answer
inside in a rectangular box) your answers on all exam problems.
e. Providing only answers without showing any work or not boxing your answer will result in
that answer being marked incorrect
f. Please put this and all other exams on your schedule immediately.
g. All students that submit an Accommodation Letter through the DSO will be required to
make arrangements to take all examinations through the DSO. I suggest that you schedule
with the DSO as early as possible since space is limited in their facility.
h. Each exam is graded on a 100 point scale.
i. After the exam grade has been posted, you have one (1) week to request a grade change.
After that period, no requests will be accepted.
(i) Excused Absences:
a. If you miss one of the “graded” events and think that you have a valid academic excuse,
you are to submit a written explanation to the instructor (using a memo format and
including any supporting appropriate documentation) preferably before or within two (2)
days of the absence. Any submissions submitted after the deadline will not be accepted.
b. These will be considered on a case-by-case basis and you will be advised of the outcome.
c. With reference to the Three Hourly Exams and the Final Exam ABSENCE FROM THESE
WILL ONLY BE EXCUSED UNDER EXTREME PERSONAL CONDITIONS. If you
know of a conflict with one of the scheduled exams you should make the instructor aware
of this conflict at least four weeks prior and appropriate accommodations will be
considered. However, if your excuse is not accepted you will receive a zero for that
assignment. See the relevant NCSU policy at the following website:
http://www.ncsu.edu/policies/academic_affairs/courses_undergrad/REG02.20.3.php.
d. Failure to attend any of the Hourly Exams or the Final Exam will result in a zero for that
exam.
(j) Late Work: Late work will not be accepted under any circumstances. Please see the excused
absences section above for reference on missed work.
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ISE 311 Engineering Economic Analysis
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(k) Grading Policy:
a. This course will employ the plus/minus (+/-) grading system for recording final grades.
b. The maximum grade possible on all items is 100% of the maximum grade allowed.
c. Any grades over 100% will be rounded down to 100%. The following percentages will be
used for calculating the final grade (maximum amounts shown for each item – not to
exceed documented percentages).
•
•
•
•
•
•
Homework
In-class Quizzes
Out-of-class Quizzes
Three (3) Hourly Exams
Comprehensive Final Exam
Total
10%
5%
0%
60% (evenly weighted)
25%
100%
7. ACADEMIC HONESTY
Plagiarism and other forms of cheating are serious offenses and if committed may result in negative
consequences for the student. Honesty and integrity is expected of all students in all courses. See the Code
of Student Conduct at: www.ncsu.edu/policies/student_services/student_discipline/POL11.35.1.php. The
NCSU Honor Pledge states, "I have neither given nor received unauthorized aid on this test or
assignment." By placing your name on homework, exams and other assignments that you turn in for
credit/grading in this course you are communicating to me your adherence to this pledge.
8. ACCOMMODATIONS
"Reasonable accommodations will be made for students with verifiable disabilities. In order to take
advantage of available accommodations, students must register with Disability Services for Students at
1900 Student Health Center, Campus Box 7509, 515-7653. For more information on NC State's policy on
working with students with disabilities, please see the Academic Accommodations for Students with
Disabilities Regulation (REG02.20.1)"
All students that register with the DSO should make arrangements with the DSO for taking the three (3)
exams and the one (1) final exam. Due to limited space and time, no additional time can be given in class
for exams. The exam schedule has been placed on Moodle so make arrangements for taking the exam
through DSO.
9. COURSE POLICIES AND PROCEDURES
I want to wish you all the Best of Luck this semester! Please feel free to schedule an appointment with me
at any time as questions and/or problems come up. For routine questions about homework problems
please see the TA first. I do look forward to this semester and hope that this course will be both enjoyable
and educational. Tip of the Day: It has been observed in the past, that those folks who attend class and do
their homework assignments on a daily basis receive the bulk of the higher grades in this class
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by NCSU ISE