CE 388 - ENGINEERING ECONOMY
SPRING 2005
Instructor:
Telephone:
Office Hours:
Zong Z. Tian
Office:
SEM 102 (temp)
775-784-1232
Email:
zongt@unr.edu
Tuesday and Thursday: 10 am to 11 am and 2:00 to 3:00 pm or anytime I am in my office
Time and Day: Tuesedays and Thursedays: 8 to 8:50 am
Location:
Text:
Newnan, Donald G., "Engineering Economic Analysis," 9th Edition, 2004
Prep Day:
Wednesday, May 4, 2005
Final Exam:
Tuesday, May 10, 2005 between 7:30 to 9:30 am
Spring Break:
Saturday, March 26, 2005 to Sunday, April 3, 2005
Holiday:
Monday, February 21 (President’s Day), 2005
SEM 326
Final Day for Dropping Classes: Friday, March 11, 2005
Goal: The content of the course is designed to provide students with the fundamental concepts of engineering
economy.
Course Objectives:
•
•
•
•
•
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Formulate and solve time value of money problems. (a)
Determine and obtain suitable data to solve economic problems using appropriate techniques. (b, e)
Evaluate multiple alternatives to determine the optimum one. (e, k)
Use relevant formula for financial analyses. (k)
Understand the importance of making appropriate economic decisions. (f)
Recognize the impact of engineering economic decisions in a global and societal context. (h)
(Letters in parenthesis refer to ABET 2000 Engineering Criteria.)
Course Outline:
I. Basic Principles
A. Economic decisions
B. Engineering costs and cost estimating
C. Interest and equivalence
D. Equivalence and compound interest
E. Cash flow diagrams
II. Types of Economic Analyses
A. Present worth analysis
B. Annual cash flow analysis
C. Rate of return analysis
D. Incremental analysis
E. Future worth, benefit-cost, payback, sensitivity
F. Depreciation
G. Taxes
III. Special Topics
A. Replacement
B. Inflation
C. Economic analysis in government
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 16
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Grading:
Midterm Exams
Final Examination
Quizzes
Homework
a.
b.
1
1
5
Infinite
30%
30%
20%
20%
Homework must be presented on engineering paper in a neat format. Do not fold paper. Staple in
upper left-hand corner. ATTENDANCE IS EXPECTED!
Solutions to all homework and examinations must show the cash flow diagram for full credit.
If you have a disability for which you will need accommodations, please contact me or Mary Zabel at the Disability
Resource Center (Thompson Student Services – 107), as soon as possible to arrange for appropriate
accommodations.
Course Schedule
Table 1
Course Schedules – CEE 388: Engineering Economic Analysis
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Date
1/18
1/20
1/25
1/27
2/1
2/3
2/8
2/10
2/15
2/17
2/22
2/24
3/1
3/3
3/8
3/10
3/15
3/17
3/22
3/24
3/28
4/5
4/7
4/12
4/14
4/19
4/21
4/26
4/28
5/3
Topic
Overview: Decision Making
Time Value
Engineering Cost: Part I
Engineering Cost: Part II
Cash Flow Diagrams
Interest and Equivalence
More Interest Formulas: A->F; F->A
More Interest Formulas: A->P; P->A
More Interest Formulas: G->P; G->A
Norminal vs. Effective Interest
Present Worth Analysis: Part I
Present Worth Analysis: Part II
Midterm Exam Review
Midterm Exam
Annual Cash Flow Analysis
Rate of Return Analysis: Part I
Rate of Return Analysis: Part II
Rate of Return Analysis: Part III
Incremental Analysis: Part I
Incremental Analysis: Part II
Spring Break
Other Techniques: Part I
Other Techniques: Part II
Depreciation
Income Tax
Replacement Analysis
Inflation
Economic Analysis in Public Sector
Final Review
Final Exam
Reading
Chapter 1
handout
Chapter 2
Chapter 2
Chapter 2
Chapter 3
Chapter 4
Chapter 4
Chapter 4
Chapter 4
Chapter 5
Chapter 5
Chapter 6
Chapter 7
Chapter 7
Chapter 7
Chapter 8
Chapter 8
Chapter 9
Chapter 9
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 16
*Note: The course schedule is subject to change depending on student performance
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CE 388 Engineering Economy
INSTRUCTION SHEET: For submitting homework problems
1. Work all problems using a sharp black pencil on engineering computation paper. Letter
all work -- do not write. You are responsible for the professional appearance of your
work -- homework, tests and papers. An engineer should turn out work that looks like an
engineer has done it. You may type your homework if you wish. The student who
persistently turns in sloppy work will have his/her grade reduced. In short, be neat and
“leave a trail”.
2. Underline your answers in black as shown. Red pencil or ink will be used by the grader
only.
3. More than one problem may be worked on one sheet if space is available, but do not start
a problem in the middle of the sheet if it cannot be finished on that sheet without
crowding. Circle the problem number as shown and separate each problem with a heavy
horizontal line.
4. Include a cash flow diagram or sketch as appropriate.
5. Write the equivalence equation [in brackets] before proceeding to the numerical solution.
6. Problem sets are due each Tuesday at the beginning of the class unless otherwise
directed. Do not fold problem sets -- staple sheets together in the upper left-hand corner.
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