ENGR 300 - Economics for Engineers
Fall Quarter 1993

1993 Catalog Data:
ENGR 300: Economics for Engineers.
Credit 4.
Basic economic concepts, relationships between economic and engineering problems, role of interest and capital in cost minimization, analysis of financial statements, original and alternative investments, capital depreciation and replacement problems.

Textbook:D. G. Newman, Engineering Economic Analysis, 4th Ed., Engineering Press, 1991.
Coordinator:R. Manvi, Professor of Mechanical Engineering
Goals:This course is designed to teach students in engineering basic tools needed in the practice of good engineering decision making with considerations of possible social impacts, realistic constraints, and ethical issues.

Reference:

E. L. Grant, W. G. Ireson, and R. S. Leavenworth, Principles of Engineering Economy, 7th Ed. John Wiley & Sons, Inc., 1982.

Prerequisites by Topic:

  1. Fundamental skills necessary for mathematics beyond arithmetic.
  2. Ability to use a microcomputer.
  3. Ability to read company annual reports, finance literature, and business newspapers.

Topics:

  1. Introduction, decision making. (2 classes)
  2. Cash flow equivalence. (2 classes)
  3. Present worth analysis. (2 classes)
  4. Annual cash flow analysis. (2 classes)
  5. Rate of return analysis. (2 classes)
  6. Incremental analysis. (2 classes)
  7. Other analysis techniques. (2 classes)
  8. Depreciation. (2 classes)
  9. Income taxes. (2 classes)
  10. Miscellaneous topics of engineering economy. (2 classes)

Computer Usage:

Students are required to use computer programs included with the text, and available for students to compute rates of return, depreciation, and after tax cash flows. Use of spread sheet programs is also encouraged to solve homework problems.

Design Content:

Even though no design content is claimed for this course, the instructors teaching this course do cover one or more of the following features of the design process: Social Impacts, Feasibility Considerations, Ethical Issues, and Alternative Solutions.

ABET category content as estimated by the faculty member who prepared this course description:
Other: 4 credits or 100%

Prepared by: R. Manvi
Date: January 1994