Engineering Economy (IE305) Course Detail

Course Name	Course Code	Season	Lecture Hours	Application Hours	Lab Hours	Credit	ECTS
Engineering Economy	IE305	6. Semester	2	0	0	2	5

Pre-requisite Course(s)
N/A

Course Language	English
Course Type	Compulsory Departmental Courses
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)	Instructor Dr. Hakan Ömer Tunca
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	Introduction and Estimating Costs	[1] Chapter 11
2	Foundations of Engineering Economy	[1] Chapter 1
3	Foundations of Engineering Economy	[1] Chapter 1
4	How time and interest affect money	[1] Chapter 2
5	How time and interest affect money	[1] Chapter 2
6	Nominal and effective interest rates	[1] Chapter 3
7	Present worth analysis	[1] Chapter 4
8	Midterm	[1] Chapter 11, 1, 2, 3, 4
9	Annual worth analysis	[1] Chapter 5
10	Rate of return analysis	[1] Chapter 6
11	Benefit/Cost analysis and public sector projects	[1] Chapter 7
12	Effects of inflation	[1] Chapter 10
13	Depreciation methods	[1] Chapter 12
14	After-tax economic analysis	[1] Chapter 13
15	Final Exam	[1] Chapter 11, 1, 2, 3, 4, 5, 6, 7, 10, 12, 13

Sources

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	1	40
Final Exam/Final Jury	1	60
Toplam	2	100

Percentage of Semester Work	40
Percentage of Final Work	60
Total	100

Course Category

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

The Relation Between Course Learning Competencies and Program Qualifications

#	Program Qualifications / Competencies	Level of Contribution
#	Program Qualifications / Competencies	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.
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.			X
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.
6	The ability to work efficiently in inter-, intra-, and multi-disciplinary teams; the ability to work individually.
7	Effective oral and written communication skills; The knowledge of, at least, one foreign language; the ability to write a report properly, understand previously written reports, prepare design and manufacturing reports, deliver influential presentations, give unequivocal instructions, and carry out the instructions properly.
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.
10	Knowledge of business practices such as project management, risk management, and change management; awareness of entrepreneurship and innovation; knowledge of sustainable development.			X
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.
12	Ability to work in the fields of both thermal and mechanical systems including the design and production steps of these systems.

ECTS/Workload Table

Activities	Number	Duration (Hours)	Total Workload
Course Hours (Including Exam Week: 16 x Total Hours)	15	2	30
Laboratory
Application
Special Course Internship
Field Work
Study Hours Out of Class	15	5	75
Presentation/Seminar Prepration
Project
Report
Homework Assignments
Quizzes/Studio Critics
Prepration of Midterm Exams/Midterm Jury	1	8	8
Prepration of Final Exams/Final Jury	1	12	12
Total Workload			125