University of Bridgeport
TCMG/MEEG 546, Engineering Economics
Spring 2016
Wednesdays, 1:30 – 4:00 pm
Tech 164
------------------------------------------------------------------------------------------------------------------------------Neal A. Lewis, Ph.D.
Office: Tech 139
Phone: 203 - 576 - 4569
E-mail: lewisn@bridgeport.edu
Office Hours: Mondays 1:00 – 3:00pm, Tuesday and Wednesdays 11:00am – 12:00 noon
------------------------------------------------------------------------------------------------------------------------------Course Description:
The course covers the concepts and methods that will assist engineering and technology
managers and professionals to make alternative investment and funding decisions regarding
projects, programs, products, business expansion and other alternatives using the financial
calculations involving time value of money (IRR, ROI, NPV), uncertainty and risk. Topics include
engineering and related financial evaluation techniques and formulas, choosing among
alternatives, sensitivity analysis, economic analysis, opportunity costs, depreciation, amortization,
probability, cost estimating and systems and others.
Required Course Material:
1. Required text: Eschenbach, Ted G. Engineering Economy: Applying Theory to Practice, 3nd
edition. New York: Oxford University Press, 2011. ISBN 978-0-19-977276-6. You must obtain
a copy of this textbook.
2. Student i>Clicker response unit. “Clickers” are required; we will be using the i>Clicker brand.
These are available at the UB bookstore, on amazon.com, and other locations. Your personal
clicker must be brought to every class. Your class participation grade depends on your clicker
use.
3. Financial calculator. A financial calculator is recommended but not required for the class.
These are widely available and are fairly inexpensive. Models include HP 10BII, HP 10B, TI BAII
Plus, TI 83, TI 84 Plus, Sharp EL-733A, HP 33s, or HP 35s. Note that an HP 12C is permissible
but not recommended.
Supporting texts:
Peterson, William R. and Eschenbach, Ted. Cases in Engineering Economy, 2nd edition. New
York: Oxford University Press, 2009. Case studies are often taken from this book.
Eschenbach, Ted G.; Lewis, Neal A.; Hartman, Joseph C.; and Bussey, Lynn E. The Economic
Analysis of Industrial Projects, 3rd edition, 2015.
Key Journal
The Engineering Economist. Institute of Industrial Engineers and the American Society for
Engineering Education. Published quarterly.
Course Requirements:
1. Class Attendance, Participation, Punctuality and Cheating: Attendance at each class
session is expected. Class lectures complement, but do not duplicate, textbook information.
Together the students and instructor will be creating a learning organization. Students are
expected to be on time for class. A significant portion of your learning will accrue through the
constructive and respectful exchange of each other’s ideas (including mine) and search for
alternative solutions. You must be actively engaged in class discussions to improve your thinking
and communication skills.
Cheating is absolutely unacceptable in any form. If I catch you cheating, I will warn you once,
with a zero for that assignment. The second offense will result in an “F” for the course. Cheating
means using the work of others as your own. Copying homework, using papers from the Internet,
any talking or looking around during exams and allowing others to look at your exam papers are
examples of cheating.
It is the student's responsibility to familiarize himself or herself with and adhere to the standards
set forth in the policies on cheating and plagiarism as defined in Chapters 2 and 5 of the Key to
UB http://www.bridgeport.edu/pages/2623.asp or the appropriate graduate program handbook.
As a UB policy, it is expected that each student that attends one hour of classroom instruction will
require a minimum of two hours of out of class student work each week for approximately fifteen
weeks for one semester.
2. Preparation, Deadlines and Late Policy: Homework and other assignments are due on the
due date, not later. Late assignments will receive half credit. No excuses will be accepted.
Don’t wait until the last minute to print out your assignment.
3. Homework: Problems will be assigned that each student is expected to complete and turn in.
Engineering economics is learned by doing problems, not by reading solutions. It is the student’s
responsibility to learn the material and to do the homework problems. Problems and other
homework will also be given. Be prepared to turn in an original version of your homework every
week. Homework may be hand written, but I must be able to read it.
4. Case Studies: All case studies are to be summarized in writing and turned in the day of the
discussion. These case studies will be done by small teams of about 4 people, and each team
will turn in one report for each case study. There will be four (4) teams. Each case will be
presented by one of the teams, and each team will have the responsibility of presenting and
leading the discussion for one case study. Case studies will be assigned early in the semester.
5. Course Grading:
Homework, quizzes, and class participation
Case studies
2 exams
25 %
25 %
50 %
100 %
6. Tentative Schedule
Date
Topic
Read for today
Making economic decisions
Time Value of Money
Chapters 1&2
1
1/20/2016
2
1/27
Economic Equivalence
E&L Chapter 3
(on Canvas)
3
2/3
Cash Flow Tables
E&L Chapter 4
(on Canvas)
4
2/10
Present and Annual Worth
Chapters 5&6
5
2/17
IRR and Other Measures
Chapters 7&8
6
2/24
Mutually Exclusive Alternatives
Chapter 9
7
3/2
Constrained Project Selection
Chapter 11
8
3/9
Mid-Term Exam
3/16
Spring Break – no class
9
3/23
Depreciation and Taxes
Chapters 12&13
10
3/30
Estimating Cash Flows
EAIP 3/e Ch. 3
(on Canvas)
11
4/6
Sensitivity Analysis
Chapter 17
12
4/13
Uncertainty and Risk Analysis
Chapter 18,
Case Study due
today
Case 1
Case 2
Case 3
EAIP 3/e Ch. 13
(on Canvas)
13
4/20
Test 2
14
4/27
Wrap up
Case 4