Engineering Economy (IE305) Course Detail

Course Name Course Code Season Lecture Hours Application Hours Lab Hours Credit ECTS
Engineering Economy IE305 2 0 0 2 5
Pre-requisite Course(s)
Course Language English
Course Type N/A
Course Level Bachelor’s Degree (First Cycle)
Mode of Delivery Face To Face
Learning and Teaching Strategies Lecture, Question and Answer.
Course Coordinator
Course Lecturer(s)
  • Dr. Öğr. Üyesi Cihan Tuğrul ÇİÇEK
Course Assistants
Course Objectives This course aims to introduce the economic dimension of evaluating and selecting alternative investment projects. By the end of the course, the student will be able to investigate engineering economy problems, and formulate and solve such problems using appropriate conceptual and mathematical skills and modeling structures.
Course Learning Outcomes The students who succeeded in this course;
  • Students will be able to identify the principles and methods necessary to evaluate and select engineering alternatives.
  • Students will be able to discuss the concepts of time value of money and interest rates.
  • Students will be able to recognize, formulate, and analyze cash flow models in practical situations.
  • Students will be able to analyze cash flow series using present value, future worth, annual worth, and rate of return methods.
  • Students will be able to develop cash flow series considering the effects of depreciation, taxes and inflation
  • Students will be able to analyze decision problems related to equipment replacement.
  • Students will be able to interpret economy studies and investment decisions in the public sector.
Course Content Economic analysis for engineering and managerial decision-making; cash flows, effect of time and interest rate on money and physical assets; methods of evaluating alternatives: present worth, future worth, annual worth, rate-of-return and benefit/cost ratios; depreciation and taxes; effects of inflation.

Weekly Subjects and Releated Preparation Studies

Week Subjects Preparation
1 Foundations of Engineering Economy [1] pages 1-25
2 How time and interest affect money: single payment formulas [1] pages 27-33
3 How time and interest affect money: single payment formulas (cont) [1] pages 27-33
4 How time and interest affect money: uniform series formulas [1] pages 34-36
5 How time and interest affect money: gradient formulas and shifted cash flows [1] pages 37-57
6 Nominal and effective interest rates [1] page 59-78
7 Present worth analysis [1] page 80-106
8 Annual worth analysis [1] pages 107-123
9 Rate of return analysis [1] pages 124-159
10 Benefit/Cost analysis and public sector projects [1] pages 160-181
11 Effects of inflation [1] pages 237-258
12 Midterm
13 Unit method, cost indexes, cost-capacity equations, factor method, unit cost estimation [1] pages 259-286
14 Depreciation methods [1] pages 287-311
15 After-tax economic analysis [1] pages 312-347
16 Final Examination Period


Course Book 1. Basics of Engineering Economy, Leland Blank, Anthony Tarquin, McGraw-Hill Education
Other Sources 2. Contemporary Engineering Economics, CS Park, 3rd Edition, Addison Wesley, 1997.
3. Engineering Economy, GJ Thuesen & WJ Fabrycky, 9th Edition, Prentice Hall, 2001

Evaluation System

Requirements Number Percentage of Grade
Attendance/Participation - -
Laboratory - -
Application - -
Field Work - -
Special Course Internship - -
Quizzes/Studio Critics - -
Homework Assignments - -
Presentation - -
Project - -
Report - -
Seminar - -
Midterms Exams/Midterms Jury 2 60
Final Exam/Final Jury 1 40
Toplam 3 100
Percentage of Semester Work 60
Percentage of Final Work 40
Total 100

Course Category

Core Courses X
Major Area Courses
Supportive Courses
Media and Managment Skills Courses
Transferable Skill Courses

The Relation Between Course Learning Competencies and Program Qualifications

# Program Qualifications / Competencies Level of Contribution
1 2 3 4 5
1 Adequate knowledge of mathematics, physical sciences and the subjects specific to engineering disciplines; the ability to apply theoretical and practical knowledge of these areas in the solution of complex engineering problems. X
2 The ability to define, formulate, and solve complex engineering problems; the ability to select and apply proper analysis and modeling methods for this purpose. X
3 The ability to design a complex system, process, device or product under realistic constraints and conditions in such a way as to meet the specific requirements; the ability to apply modern design methods for this purpose.
4 The ability to select, and use modern techniques and tools needed to analyze and solve complex problems encountered in engineering practices; the ability to use information technologies effectively.
5 The ability to design experiments, conduct experiments, gather data, and analyze and interpret results for investigating complex engineering problems or research areas specific to engineering disciplines. X
6 The ability to work efficiently in inter-, intra-, and multi-disciplinary teams; the ability to work individually.
7 (a) Sözlü ve yazılı etkin iletişim kurma becerisi; etkin rapor yazma ve yazılı raporları anlama, tasarım ve üretim raporları hazırlayabilme, etkin sunum yapabilme, açık ve anlaşılır talimat verme ve alma becerisi. (b) En az bir yabancı dil bilgisi; bu yabancı dilde etkin rapor yazma ve yazılı raporları anlama, tasarım ve üretim raporları hazırlayabilme, etkin sunum yapabilme, açık ve anlaşılır talimat verme ve alma becerisi.
8 Recognition of the need for lifelong learning; the ability to access information, follow developments in science and technology, and adapt and excel oneself continuously.
9 Acting in conformity with the ethical principles; professional and ethical responsibility and knowledge of the standards employed in engineering applications. X
10 Knowledge of business practices such as project management, risk management, and change management; awareness of entrepreneurship and innovation; knowledge of sustainable development.
11 Knowledge of the global and social effects of engineering practices on health, environment, and safety issues, and knowledge of the contemporary issues in engineering areas; awareness of the possible legal consequences of engineering practices. X
12 (a) Knowledge of (i) fluid mechanics, (ii) heat transfer, (iii) manufacturing process, (iv) electronics and control, (v) vehicle components design, (vi) vehicle dynamics, (vii) vehicle propulsion/drive and power systems, (viii) technical laws and regulations in automotive engineering field, and (ix) vehicle verification tests. (b) The ability to merge and apply these knowledge in solving multi-disciplinary automotive problems.
13 The ability to make use of theoretical, experimental, and simulation methods, and computer aided design techniques in automotive engineering field.
14 The ability to work in the field of vehicle design and manufacturing.

ECTS/Workload Table

Activities Number Duration (Hours) Total Workload
Course Hours (Including Exam Week: 16 x Total Hours) 16 2 32
Special Course Internship
Field Work
Study Hours Out of Class 16 5 80
Presentation/Seminar Prepration
Homework Assignments
Quizzes/Studio Critics
Prepration of Midterm Exams/Midterm Jury 2 3 6
Prepration of Final Exams/Final Jury 1 7 7
Total Workload 125