Baheehir University

Course Unit Title

Course Unit Code
Type of Course Unit (Compulsory, Optional)
Level of Course Unit (First, Second, or Third Cycle,
Sub-Level if Applicable)
Semester / Trimester
Course Credit
ECTS Credits
Name of Lecturer(s)

Course Objective

Industrial Engineering Department

Engineering Economy
INE3003
Compulsory
First Cycle
1
3
5
Asst. Prof. Adnan Corum
The purpose of this course is to supplement
engineering students technical training with the
knowledge and capability to perform financial
analysis especially in the area of capital
investment.
I.
II.
III.
IV.
V.

Learning Outcomes of the Course Unit

VI.

Explain the role of engineering

economy.
Explain the concepts of time value of
money
Define financial factors regarding time
and interest effect on money
Define nominal and effective interest
rates.
Perform present worth analysis to
evaluate projects and investment
Explain the concept of investment
recovery and identify the recovery
period.

VII.

Mode of Delivery (Face-to-Face, Distance Learning)

Pre-requisites and Co-requisites
Recommended Optional Program Components

Course Outline

Perform annual worth analysis to

evaluate projects and investment
VIII.
Define the Rate of return and perform
rate of return analysis to evaluate
investments.
IX. Evaluate public sector projects
X. Perform replacement and retention analysis
Face-to-Face
1st Week: Introduction to course, foundations of
engineering economy
2nd Week: Factors: How time and interest affect
money
3rd Week: Combining factors
4th Week: Nominal and effective interest rates
5th Week: Present worth analysis
6th Week: Problem session
7th Week: Midterm Exam
8th Week: Annual worth analysis
9th Week: Rate of return analysis: Single
alternative
10th Week: Benefit/cost analysis and public
sector economics

Baheehir University

Industrial Engineering Department

11th Week: Replacement and retention decisions
12th Week: Replacement and retention decisions
13th Week: Break even and Payback period
analysis
14th Week: Problem Session

Assessment Methods and Criteria

Language of Instruction
Work Placement(s)

Week

Recommended or Required Reading

Textbook Leland Blank, Anthony Tarquin

Engineering Economy, 7th Ed., McGraw-Hill
Inc.
Attendance
Work Practice
Field Work
Midterm Exam
40%
Quizzes
Homework
Presentation(s)
Project(s)
Seminar(s)
Final Exam
60%
English
None