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	Gains sufficient knowledge in subjects specific to mathematics, natural sciences, and engineering disciplines; gains the ability to use theoretical and applied knowledge in these fields to solve complex engineering problems.		X
2	Defines, formulates, and solves complex engineering problems; selects and applies appropriate analysis and modeling methods for this purpose.
3	Designs a complex system, process, device, or product under realistic constraints and conditions to meet specific requirements; applies modern design methods.			X
4	Selects and uses modern techniques and tools necessary for analyzing and solving complex problems encountered in engineering applications; gains the ability to use information technologies effectively.
5	Designs experiments, conducts experiments, collects data, and analyzes and interprets the results for studying complex engineering problems or research topics specific to engineering disciplines.
6	Works effectively in both disciplinary and multidisciplinary teams; gains the ability to work individually.
7	Develops effective oral and written communication skills; acquires proficiency in at least one foreign language; writes effective reports and understands written reports, prepares design and production reports, delivers effective presentations, and gives and receives clear and understandable instructions.
8	Develops awareness of the necessity of lifelong learning; gains access to information, follows developments in science and technology, and continuously renews oneself.
9	Acts in accordance with ethical principles, takes professional and ethical responsibility, and possesses knowledge of standards used in engineering applications.
10	Gains knowledge of business practices such as project management, risk management, and change management; develops awareness of entrepreneurship and innovation; possesses knowledge of sustainable development.			X
11	Gains knowledge of the impacts of engineering applications on health, environment, and safety in universal and societal dimensions, and the issues reflected in contemporary engineering fields; develops awareness of the legal consequences of engineering solutions.
12	Gains the ability to work in both thermal and mechanical systems fields, including the design and implementation of such 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