DEPARTMENT OF INDUSTRIAL ENGINEERING
IE 305 ENGINEERING ECONOMIC ANALYSIS
2010-2011 SPRING TERM
Instructor:
Uğur BAÇ
Merve Hande ERGİN
Assistant:
To be announced
Web page:
http://ie.atilim.edu.tr/~ie305/
Office: 216
Office: 210
ubac@atilim.edu.tr
mergin@atilim.edu.tr
Lecture Hours:
COMPE (01)
Thursday 11:30-13:20
Friday 10:30-11:20
COMPE+MATE (02)
Wednesday 09:30-11:20
Friday 11:30-12:20
CE+SE (03)
Wednesday 12:30-13:20
Friday 14:30-16:20
CE+SE (04)
Tuesday 14:30-16:20
Thursday 14:30-15:20
ISE (05)
Tuesday 11:30-13:20
Thursday 13:30-14:20
Room B 1029
Room B 1033
Room B 1033
Room B 1033
Room B 1003
Room B 1009
Room B 1033
Room B 1029
Room B 1029
Room B 1029
Office Hours: By appointment only
Catalog Description:
IE 305 Engineering Economic Analysis (3-0) 3
Economic analysis for engineering and managerial decision-making. Capital flows, effect of
time and interest rate on Money and physical assets. Methods of evaluating alternatives:
present worth, future worth, annual worth, rate-of return and benefit/cost ratios. Minimumcost life and replacement analysis. Depreciation and taxes. Effects of inflation. Uncertainty
and preference under risk.
Text Book:
Basics of Engineering Economy, Leland Blank, Anthony Tarquin, McGraw-Hill Education.
References:
 Contemporary Engineering Economics, CS Park, 3rd Edition, Addison Wesley, 1997.
 Engineering Economy, GJ Thuesen&WJ Fabrycky, 9th Edition, Prentice Hall, 2001.
Goals:
This course introduces the economic dimension of evaluating and selecting alternative
investment projects. By the end of the course, the student will be able to investigate,
formulate and solce such engineering economy problems using appropriate conceptual and
mathematical skills and modeling structures.
Objectives:
 To give students an understanding of principles and methods necessary to evaluate and
select engineering alternatives.
 To help students understand concepts of time value of money and interest rates.
 To give students ability to analyze cash flow series using present value, future worth,
annual worth, and rate of return methods.
 To give students ability to develop cash flow series considering the effects of depreciation,
taxes and inflation.
 To give students and understanding of basic cost terminology and ability to apply an
integrated approach in developing cash flow series.
 To help students understand economy studies and investment decisions in the public
sector.
 To help students analyze complex decision problems under uncertainty and risk.
Course Topics:
1. Foundations of Engineering Economy
2. Estimating Costs
3. Nominal and Effective Interest Rates
4. Present Worth Analysis
5. Annual Worth Analysis
6. Rate of Return Analysis
7. Benefit/Cost analysis and Public Sector Projects
8. Effects of Inflation
9. Depreciation Methods
10. After-Tax Economic Analysis
Computer Usage:
 To access homework assignments and any kind of announcements on the course web page.
Exam:
Midterm Exam
April 11, 2011 at 18:30
Quizes:
There will be pop quizes.
Grading:
Midterm
Quizes
Final Exam
30%
30%
40%
Points should be considered:
 Any kind of cheating will be graded as FF.
 No make-up for pop-quizes.
 Course coincidences will not be accepted.
 80% attendance to the course is compulsory.