Course Outline

ECON 225 : Engineering Economics

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Last approved: Mon, 11 Jan 2016 19:36:12 GMT

Last edit: Mon, 11 Jan 2016 19:36:11 GMT

ECON 225-WW
Campus
Worldwide
College of Arts & Sciences (WARSC)
ECON
225
Engineering Economics
3
This course is an introduction to microeconomic principles, problems, and policies as well as basic financial principles such as time value of money, capital budgeting, and cost of capital. The course will provide the engineering graduate with the tools needed for success in the workplace.

This course is designed to provide the student with a comprehensive coverage of concepts in engineering economics. It presents mathematical techniques and practical advice for evaluating decisions in the design and operation of engineering systems. These procedures support both selection and justification of design alternatives, operating policies, and capital expenditure. The topics covered include time value of money, financial evaluation methods, depreciation and inflation, project financing, replacement analysis, notions on capital budgeting and sensitivity, and risk analysis.The first half of the semester will be devoted to presenting an introduction to the U.S. economy, consumer demand, producer supply and competitive market models. The second half of the semester will focus on essential finance principles such as the cost of capital, financial mathematics and instruments, capital budgeting, ration and break-even analysis and bond markets.

1. Understand the concepts of interest and time value of money and to make financially prudent decisions in everyday life (car/home loans or investments).2. Distinguish among the concepts of cost of capital, minimum acceptable rate of return and rate of return.3. Develop a fundamental understanding of the various financial statements and how engineering decisions have a bearing on the financial statements.4. Demonstrate an understanding of the impact depreciation and taxation has on project decisions and project development cash flows.5. Evaluate engineering projects with economic decisions using present worth (PW) , annual worth (AW) and rate of return (ROR) analyses.6. Discuss capital budgeting techniques for evaluation of a capital investment project.7. Demonstrate the ability to apply tools of capital budgeting to project cash flows to make engineering economic decisions.8. Analyze and evaluate engineering projects based on a cost-benefit analysis.9. Understand and explain the nature of American capitalism.10. Discuss and evaluate supply and demand11. Evaluate the hinds of competition and how they compare with each other.12. Understand various financial instruments such as stocks, mutual funds, corporate and municipal bonds.13. Calculate PV, FV, FVA, PVA and compound interest and Annuity using Microsoft Excel program.14. Calculate the individual costs of equity capital, debt and preferred as well as the weighted average cost of capital (WACC).15. Use the cost of capital in capital budgeting problems.16. Understand the mathematics of bonds and how bond markets work.17. Perform breakeven and ratio analysis18. Demonstrate the ability to use spreadsheets and other computer software in the engineering economics decision-making process.

Located on the Daytona Beach Campus, the Jack R. Hunt Library is the primary library for all students of the Worldwide Campus. The Chief Academic Officer strongly recommends that every faculty member, where appropriate, require all students in his or her classes to access the Hunt Library or a comparable college-level local library for research. The results of this research can be used for class projects such as research papers, group discussion, or individual presentations. Students should feel comfortable with using the resources of the library. 


Web & Chat: http://huntlibrary.erau.edu
Email:  library@erau.edu
Text: (386) 968-8843
Library Phone:  (386) 226-7656 or (800) 678-9428
Hourshttp://huntlibrary.erau.edu/about/hours.html
 

a. Students will be required to use to myengineeringlab offered through Pearson which comes packaged with the textbook and ebook option. b. Popular articles and newspapers are always helpful. This includes the Wall Street Journal, Economist, Financial Times, Bloomberg, etc. c. Audio Visual Materials: Movies: TED Talk, Problem Solving, Mylab Videos, Example Problem Illustrations, Exchange Rates, d. The following lists of podcasts provided by the publisher give short summaries of each chapter and will be very helpful to all students. Click on the following link: http://highered.mcgraw-hill.com/sites/0073376353/student_view0/podcasts.html e. You may find this list of terms provided by the publisher helpful. Click on the link provided: http://highered.mcgraw-hill.com/sites/0073376353/student_view0/glossary_of_concepts_and_terms.html
N/A

Written assignments must be formatted in accordance with the current edition of the Publication Manual of the American Psychological Association (APA) unless otherwise instructed in individual assignments.

ActivityPercent of Grade
Input Grading Item100

Undergraduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
60 - 69% D
0 - 60% F

Graduate Grade Scale

90 - 100% A
80 - 89% B
70 - 79% C
0 - 69% F
Written and oral communications, aviation applications of subject matter, and computer skills are emphasized in each course offered throughout the Worldwide Campus.
Jason Gurtovoy - 6/15/2015
gurtovoj@erau.edu
Kelly George - 6/15/2015
georged8@erau.edu
Alan Bender - 6/18/2015
Alan.Bender@erau.edu
Dr. James Schultz – 6/15/2015
schul9fd@erau.edu
PO#NameDescription
1-14 General Education of Arts and Sciences PO1 - Apply knowledge of college level mathematics to defining and solving problems;
PO2 - Apply statistical methods in the analysis and interpretation of data for the purpose of drawing valid conclusions relating to the solutions of problems;
PO3 - Communicate ideas in written form in both technical and non-technical areas;
PO4 - Communicate ideas in non-written form, such as through oral presentations or visual media;
PO5 - Recognize the importance of professional, ethical and social responsibility;
PO6 - Understand the natural world, to include the impact of the environment on aerospace operations and aerospace operations on the environment, as well as everyday life and professional experiences;
PO7 - Use digitally-enabled technology to organize and manipulate data, perform calculations, aid in solving problems, and communicate solutions, ideas, and concepts;
PO8 - Use scientific information in critical thinking and decision-making processes;
PO9 - Function on multi-cultural and/or multi-disciplinary teams;
PO10 - Apply economic principles to identify, formulate, and solve problems within professional and personal environments;
PO11 - Identify and participate in professional and personal development activities through organizations and self-directed learning;
PO12 - Understand contemporary issues in society
PO13 - Recognize the complexity and diversity of the human experience, including cultural, aesthetic, psychological, philosophical, and spiritual dimensions;
PO14 - Conduct and report research in accordance with professional standards.
Key: 80