IE 207-001 ENGINEERING ECONOMIC ANALYSIS

COURSE SYLLABUS: SPRING 2013

TR 12:30pm – 1:45pm, AGIT211

Instructor: Pelin Altintas-deLeon, Ph.D.

Assistant Professor / Department of Engineering & Technology
Office Location: Charles J. Austin Engineering & Technology Building
Room 215 (AGIT)
Office Hours: MWF 8:30am-9:30am
TR 11:00am-12:00pm
Office Phone: (903) 468-8117
Office Fax: (903) 886-5960
Email Address: pelin.altintas-deleon@tamuc.edu

COURSE INFORMATION

Textbook Required: Newman, Donald G., Eschenbach, Ted G., and Lavelle, Jerome P. (2012).
Engineering Economic Analysis. New York: Oxford University Press.

Course Description:
Emphasizes the systematic evaluation of the costs and benefits associated with proposed technical
projects. The student will be exposed to the concepts of the “time value of money” and the methods of
discounted cash flow. Students are prepared to make decisions regarding money as capital within a
technological or engineering environment.
Prerequisite: IE 201. (2012-2013 Undergraduate Catalog, Texas A&M University-Commerce,
(http://catalog.tamuc.edu/index.php).

Rationale of the course: Engineering management relies on the knowledge of engineering economics
to be able to evaluate projects from a financial perspective. Optimizing financial performance of a
project is a key responsibility of the engineer in the decision making process. Examples of engineering
projects would include but not limited to equipment replacement analysis, planning a new product line,
and waste management. This course is designed to present engineering students the major concepts
and techniques of engineering economic analysis that are needed in the decision making process. The
emphasis of this course is on the analytical analysis of money and its impact on decision making.

Student Learning Outcomes:

After completing this course;
1. The student will use EXCEL spreadsheets and financial functions to model and solve engineering
economic analysis problems.
2. The student will define and provide examples of the time value of money.
3. The student will demonstrate the effects of depreciation, income taxes, inflation and price change in
engineering economic analysis problems.
4. The student will solve economical problems involving comparison and selection of alternatives by
using variety of analytical techniques including present worth analysis, annual worth analysis, future

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worth analysis, rate of return analysis, benefit-cost ratio, sensitivity and breakeven analyses, and
payback period analysis.

COURSE REQUIREMENTS

Instructional / Methods / Activities Assessments

This course utilizes facilitated lectures, and a series of assignments to assist students in achieving the
course learning outcomes. The assessment criteria for the stated student learning outcomes will
include quizzes, homework assignments, three major exams, and a final exam.

Grading

Quizzes (5 total) 10% Final Grade: 90 – 100 A

Homework (6 total) 10% 80 – 89 B
Exam 1 20% 70 – 79 C
Exam 2 20% 60 – 69 D
Exam 3 20% Below 60 F
Final Exam 20%

TECHNOLOGY REQUIREMENTS

The following technologies will be required for this class.

- A scientific calculator for exams.
- Internet access to download class notes, assignments, and readings from the course Web site.
- Microsoft Excel.

COURSE AND UNIVERSITY PROCEDURES/POLICIES

Course Specific Procedures:

1. All quizzes and exams are open book and closed notes. Use of unauthorized aids on quizzes
and exams will result in a grade of zero.
2. Late homework is not accepted.
3. I reserve the right to make changes to this syllabus as needed under unexpected
circumstances. The changes will be announced in class.
4. Students are expected to attend all class periods. Students missing more than nine class
meetings will be assigned a final grade of ‘F’ for the course.

University Specific Procedures:

ADA Statement
Students with Disabilities:
The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides
comprehensive civil rights protection for persons with disabilities. Among other things, this legislation
requires that all students with disabilities be guaranteed a learning environment that provides for
reasonable accommodation of their disabilities. If you have a disability requiring an accommodation,
please contact:
Office of Student Disability Resources and Services
Texas A&M University-Commerce
Gee Library- Room 132
Phone (903) 886-5150 or (903) 886-5835
Fax (903) 468-8148

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 StudentDisabilityServices@tamuc.edu
Student Conduct
All students enrolled at the University shall follow the tenets of common decency and acceptable
behavior conducive to a positive learning environment. (See Code of Student Conduct from
Student Guide Handbook).

COURSE OUTLINE / CALENDAR

WEEK DATES TOPIC READING HOMEWORK

ASSIGNMENT
First day of Spring 2013 1/14
Week1 1/15 Introduction Chp. 1
1/17 Engineering Costs & Estimating Chp. 2
Week2 1/22 Estimating Models & Cash Flow Diag. Chp. 2 Homework1
1/24 Time value of money, equivalence, Chp. 3
compound interest
Week3 1/29 Uniform series & compound interest factor Chp. 4 Quiz #1
1/31 Arithmetic & geometric gradient Chp. 4
Week4 2/5 Nominal & effective, continuous Chp. 4 Homework2
2/7 compounding Economic criteria, PW Chp. 4&5
technique
Week5 2/12 EXAM 1
2/14 Economic analysis problems Chp. 5
Week6 2/19 Annual cash flow analysis Chp. 6 Quiz #2
2/21 Analysis period Chp. 6
Week7 2/26 Rate of return Chp. 7 Homework3
2/28 Rate of return analysis Chp. 7
Week8 3/5 Rate of return analysis Chp. 7 Quiz #3
3/7 Choosing the best alternative Chp. 8
Incremental Analysis
NO CLASS- Spring Break 3/11 - 3/15
Week9 3/19 EXAM 2
3/21 Future worth analysis & B/C Ratio Chp. 9 Homework4
Week10 3/26 Payback period Chp. 9
3/28 Sensitivity & breakeven analysis
Depreciation Chp. 11 Quiz #4
Week11 4/2 Depreciation, Unit of Production Chp. 11
4/4 Depreciation, Depletion Homework5
Week12 4/9 Income Taxes Chp. 12
4/11 After tax RoR Quiz #5
Week13 4/16 Replacement analysis Chp. 13
4/18 EXAM 3
Week14 4/23 Inflation & price change Chp. 14
4/25 MARR Chp. 15 Homework6
Week15 4/30 Estimation of future events, Risk & Exp Chp. 10
5/2 Value Money & Markets
Week16 FINAL EXAM