Course Information

Course Name	Turkish	MÜhendislik Ekonomisi
	English	Managerial&Engineering Economi
Course Code	IYB 551E	Credit	Lecture (hour/week)	Recitation (hour/week)	Laboratory (hour/week)
Semester	-	3	3	-	-
Course Language		English
Course Coordinator		Emre Çevikcan
Course Objectives		1. To gain the ability of applying economic analyses in the related engineering discipline, 2. To understand the major capabilities and limitations of discounted cash flow analysis for evaluating proposed capital investments. 3. 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. 4. To be able to communicate the results of the modeling process to management and other non-specialist users of engineering analyses.
Course Description		Cash flow diagrams. Interest factors. Nominal and effective interest rates. Continuous compounding. Present worth 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. After-tax economic analysis. Breakeven analysis. Capital budgeting under budget constraints. Sensitivity analysis. Investment analyses under risk.
Course Outcomes		I. Move single cash flows along a time line using a compound interest rate; Move annualized cash flows along a time line using a compound interest rate; Move gradient and escalating cash flows along a time line using a compound interest rate. II. Convert nominal and effective interest rates. III. Convert cash flows into Net Present Worth (NPW), net future worth, annualized series, gradient series or escalating series. IV. Compare alternatives using NPW. V. Compute an Internal Rate of Return (IRR) for a set of cash flows and Identify spurious IRR from complex cash flows. VI. Compare alternatives using Rate-Of-Return (ROR) analysis. VII. Classify benefits, disbenefits and cost for Benefit/Cost analysis. VIII. Apply fundamental income taxation, inflation, and depreciation to their analysis. IX. Apply economic analysis under risk and uncertainty and multiple criteria
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