Course Information

Course Name	Turkish	Mühendislik Ekonomisi
	English	Engineering Economy
Course Code	SEN 305	Credit	Lecture (hour/week)	Recitation (hour/week)	Laboratory (hour/week)
Semester	5	3	3	-	-
Course Language		English
Course Coordinator		Cengiz Kahraman
Course Objectives		This course is designed to teach the basic principles of engineering economics and the techniques and practices utilized in the area of capital investment analysis to evaluate proposed solutions to engineering problems in a decision-making context.
Course Description		This course covers the basics of economic analysis from an engineering perspective. Becausecost is such an important component in decision-making, various techniques for comparingalternatives on an economic basis are presented. Other topics include depreciation, inflation considerations, and cost estimating. After completing the course, the student should be able toidentify which alternative should be selected from two or more mutually exclusive alternativeson the basis of economic considerations.
Course Outcomes		Upon completion of this course, students will: · understand the meaning of the “time value of money”, inflation, deflation, and interest and their application to economic analysis · understand and apply the steps of the economic decision-making process,including defining a problem, generating solution alternatives, estimating cashflows, analysis, selection, implementation and post-implementation analysis, · be able to financially describe investment alternatives with cash flows and cashflow diagrams · understand the concept of economic equivalence for the basis of comparingmutually exclusive alternatives · be able to analyze cash flows diagrams, including finding the present worth,annual equivalent, future worth, internal rate of return, payback period, paybackperiod with interest, and project balance · be able to analyze a set of mutually exclusive alternatives, even if they haveunequal lives, and identify viable alternatives · understand the uncertainty inherent in cash flow analysis and be able to recognizeits impact through the use of sensitivity analysis · be able to understand risk and analyze risky projects with the use of probabilitytheory, simulation and decision trees · be able to evaluate multiple alternatives under constraints and with multipleattributes · be able to solve common equipment replacement and economic life problems · understand a government’s or municipality’s role in investment analysis and beable to apply benefit-cost analysis in these situations · appreciate the difficulty with making a capital investment decision and understandthe risk involved with such a decision
Pre-requisite(s)		none
Required Facilities		Computer and projector
Other		-
Textbook		Basics of Engineering Economy by Anthony Tarquin, Leland Blank
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