Course Information

Course Name	Turkish	Mühendislik Ekonomisi
	English	Engineering Economics
Course Code	END 312E	Credit	Lecture (hour/week)	Recitation (hour/week)	Laboratory (hour/week)
Semester	-	3	3	-	-
Course Language		English
Course Coordinator		İrem Uçal Sarı
Course Objectives		I. To gain the ability of applying economic analyses in the related engineering discipline, II. To understand the major capabilities and limitations of discounted cash flow analysis for evaluating proposed capital investments. III. To be able to recognize, formulate, and analyze cash flow models in practical situations. Understand the assumptions underlying these models, and the effects on the modeling process when these assumptions do not hold. IV. To be able to communicate the results of the modeling process to management and other non-specialist users of engineering analyses.
Course Description		Cost and accounting terms. Terminology and cash flow diagrams. Interest factors and their use. Nominal and effective interest rates. Continuous compounding. Present worth and capitalized cost analysis. Uniform annual cash flow analysis. Rate of return analysis. Internal and external rates of return. Benefit / cost ratio analysis. Payback period analysis. Replacement analysis. Inflation-interest relations. Depreciation. Depletion. After-tax economic analysis. Breakeven analysis. Capital budgeting under budget constraints. Sensitivity analysis and decision trees. Investment analyses under risk.
Course Outcomes		I. To determine and analyze life cycle costs, to be able to use cost estimation techniques II. Convert nominal and effective interest rates. III. To calculate the equivalents of cash flows by considering the time value of money IV. To apply discounted cash flow techniques such as net present worth, equivalent uniform annual worth, internal rate of return and benefit cost ratio. V. Compare alternatives with differing life-cycles and Compare infinite-life projects using capitalized costs VI. To apply payback period analysis VII. To apply replacement analysis VIII. Apply fundamental income taxation, inflation, and depreciation to their analysis. IX. To be able to model capital budgeting and allocation problems X. Apply economic analysis under risk and uncertainty and multiple criteria
Pre-requisite(s)
Required Facilities
Other
Textbook		• Sullivan, W. G., Wicks, E. M., & Luxhoj, J. T. (2003). Engineering economy, 12th Edition. Upper Saddle River, NJ: Prentice Hall.
Other References		Leland T. Blank, Anthony Tarquin, Engineering Economy, 6th Edition, McGraw-Hill, 2009.

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