IE 1040 Engineering Economic Analysis
SYLLABUS
Fall Term 2024
Page 1 of 4
Class Time/Place:
Tuesday/Thursday; 8:00 AM – 9:15 AM; 1044 BEH
OR
Tuesday/Thursday; 11:00 AM – 12:15 PM; 1044 BEH
All classes held in-person and will not be recorded unless University policies change.
Instructor:
Karen M. Bursic, Ph.D., P.E.
kbursic@pitt.edu
1037 Benedum Hall
(412) 624-9837 (office)
Office Hours: in-person Wednesdays 1-3 PM or in-person or virtual by appointment
Canvas Learning Management System:
All course materials including the eBook, lecture notes, assignments, and your grades are
available via Canvas.
Grader:
Maya Jain; msj30@pitt.edu
Morgan Powers; mep212@pitt.edu
Office hours TBD (check Canvas for an announcement)
Required Text:
Newnan, D.G.; Eschenbach, T.G.; Lavelle, J.P.; & Lewis, N.L. Engineering Economic Analysis,
14th Edition, Oxford University Press, 2020.
The e-book can be obtained via Pitt’s Redshelf inclusive access (or you may opt out and purchase
the book another way).
Student Response System: Top Hat will be used in this class. You can use any device connected to the internet
including your mobile phones, IPads, or laptops to submit answers to questions. You will need to set up a student account
if you don’t already have one and note that you must use your Pitt email to set this up so that it is integrated with Canvas
(start via the link in Canvas). Download the app to your mobile device. It is free for Pitt students.
Electronic devices are welcome and encouraged in class to support learning (particularly via the Top Hat app). Please
be mindful that they do not serve as a distraction to you or those around you.
Microsoft Excel: It is assumed that all students in the course have at least a basic understanding (or beyond if you have
taken ENGR 11 or ENGR 15) of how to use Microsoft Excel for spreadsheets. We will use Excel frequently in this
course and the Final Exam is given via Excel.
Course Description:
Discusses cost estimation, time value of money, interest rate calculations, economic equivalence concepts, comparison of
alternative investments, evaluating replacement alternatives, depreciation, the impact of taxes on engineering economic
decisions, and dealing with uncertainty. Pre-requisite: Calculus 1
Course Objectives include:
 To provide an understanding of the importance of economic analysis to any practicing engineer.
 To teach the fundamental concepts and techniques used in engineering economic analysis.
 To provide an understanding of the use of economic analysis in contemporary problems.
 To familiarize students with the use of spreadsheets for economic analysis.
Applicable ABET Outcomes:
(1) Identify, formulate, and solve complex engineering problems by applying principles of engineering, science, and
mathematics. (4) Recognize ethical and professional responsibilities in engineering situations and make informed
judgments, which must consider the impact of engineering solutions in global, economic, environmental, and societal
contexts.
IE 1040 Engineering Economic Analysis
SYLLABUS
Fall Term 2024
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Assignments (25% of course grade):
Problems will be assigned from the textbook and these should be done individually and are typically due (submitted via
Canvas) after questions are addressed in class. 10% of the possible points will be deducted for assignments that are
submitted up to one day late. Assignments will not be accepted more than one day past the due date and may not be
accepted if scanned solutions are not legible. I also reserve the right to refuse any problem sets that appear to have been
copied directly from a solutions manual. The use of solutions generated from AI software is considered a violation of
academic integrity. Note that some assignments will require the use of Microsoft Excel and several assignments will
require the submission of an Excel file.
In class problems: Students are required to complete a number of comprehensive problems or case studies in class.
Details are given as each problem is assigned. You cannot earn these points unless you are in class. These are each worth
10 points.
Quizzes (25% of course grade):
A short quiz will be given in class most weeks via the student response system. The lowest quiz grade will be dropped so
you can miss one with no effect on your course grade. Obtaining and submitting a classmate’s or an AI answer/solution
to quiz questions is considered a violation of academic integrity.
Attendance is required to earn in class problem and quiz credit.
Midterm and Final Exams (each 25% of course grade):
Practice exams will be provided and details on what to expect on the exams will be given closer to the exam dates. If you
must miss an exam, you should make alternative arrangements with the instructor before the exam is given. If you miss
an exam without prior notification, you will receive a score of “zero” for that exam except under extenuating
circumstances. Violations of academic integrity include (but are not limited to) obtaining copies of past exams (other than
those provided by the instructor), copying a classmate’s answer/solution to exam questions, using forbidden material
during the exam (including AI software), discussing exam questions with a classmate or other persons during the exam,
etc.
Grading Weights and Scale:
Assignments
Quizzes
Midterm
Final*
25%
25%
25%
25%
< 59
59.00
60.00
68.00
69.00
70.00
78.00
79.00
80.00
88.00
89.00
90.00
99.00
F
DD
D+
CC
C+
BB
B+
AA
A+
*Note that you MUST earn a score of at least 60% on the Final Exam in order to pass the course
IE 1040 Engineering Economic Analysis
SYLLABUS
Fall Term 2024
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Course Policies:
Academic Integrity:
Students in this course will be expected to comply with the University of Pittsburgh’s Policy on Academic Integrity. Any student
suspected of violating this obligation for any reason during the semester will be required to participate in the procedural process,
initiated at the instructor level, as outlined in the University Guidelines on Academic Integrity. This may include, but is not limited to,
the confiscation of the examination of any individual suspected of violating University Policy. Furthermore, no student may bring any
unauthorized materials to an exam.
To learn more about Academic Integrity, visit the Academic Integrity Guide for an overview of the topic. For hands- on practice,
complete the Academic Integrity Modules.
The Swanson School’s Academic Integrity Guide can be found here: SSOE_AI_Policy.pdf
Disability Services:
If you have a disability for which you are or may be requesting an accommodation, you are encouraged to contact both your instructor
and Disability Resources and Services (DRS), 140 William Pitt Union, (412) 648-7890, drsrecep@pitt.edu, (412) 228-5347 for P3
ASL users, as early as possible in the term. DRS will verify your disability and determine reasonable accommodation for this course.
Students must contact DRS each term to initiate their accommodations.
Classroom Recording:
To ensure the free and open discussion of ideas, students may not record classroom lectures, discussions and/or activities without the
advance written permission of the instructor, and any such recording properly approved in advance can be used solely for the student’s
private use.
The instructor reserves the right to record lectures as necessary for students that cannot attend in-person. Students will be notified
when the class is being recorded. These recordings are only accessible to students in this course.
Copyright Notice
Materials provided in this course may be protected by copyright. United States copyright law, 17 USC section 101, et seq., in addition
to University policy and procedures, prohibit unauthorized duplication or retransmission of course materials.
Student Opinion of Teaching Surveys:
Students in this class will be asked to complete a Student Opinion of Teaching Survey. Surveys will be sent via Pitt email and appear
on your CANVAS page during the last three weeks of class meeting days. Your responses are anonymous. Please take time to respond
thoughtfully, your feedback is important to me.
Communication to Instructor Pertaining to Illness:
As in any situation regarding class absence (remote or in person), a student who becomes ill is responsible for communicating with the
instructor regarding course absences. Please contact the instructor and provide documentation when absences affect exams. This
should be done via email as soon as possible.
IE 1040 Engineering Economic Analysis
SYLLABUS
Fall Term 2024
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Schedule:
Dates
T/TH 8/27 & 8/29
T/TH 9/3 & 9/5
T/TH 9/10 & 9/12
T/TH 9/17 & 9/19
T/TH 9/24 & 9/26
T/TH 10/1 & 10/3
T/TH 10/8 & 10/10
T 10/15 Fall Break no class
Topic
Making Economic Decisions
Basics of Accounting and Cost Estimating
The Time Value of Money (TVM) and Equivalence
Chapters in Text
1
17 and 2
3, 4
Present Worth (PW) Analysis
Annual Worth (AW) Analysis
Rate of Return Analysis
5
6
7
MIDTERM EXAM
Chapters 1-7, 17
Th 10/17 Midterm
T/TH 10/22 & 10/24
Choosing the Best Alternative
8
T/TH 10/29 & 10/31
Payback and Benefit Cost Ratio Methods
9, 16
T/TH 11/5 remote & 11/7 Dealing with Uncertainty
9, 10
T/TH 11/12 & 11/14
Depreciation
11
T/TH 11/19 & 11/21
Corporate Taxes and After Tax Cash Flow Analysis
12
Thanksgiving Break – No class 11/26 & 11/28
T/TH 12/3 & 12/5
Economic Life & Replacement Analysis
13
T 12/10
Review
Wednesday Dec. 11
FINAL EXAM for 8 AM Section
6-7:50 PM*
Chapters 8-13, 16
Thursday Dec. 12
FINAL EXAM FOR 11 AM Section
6-7:50 PM*
*Note from Dr. Bursic: These dates differ from the University’s published Final Exam schedule; however it’s not
possible for me to meet the grading deadline if the exams were to be given on the assigned dates/times. I
requested an official change from the registrar’s office and was given permission to move them to an evening. If
you have a conflict with the assigned exam date for your section you can either take the exam with the other
section or I will accommodate you at another time during exam week. Please let me know if this is the case for
you.