School of Engineering \ Industrial Engineering
Course Credit
ECTS Credit
Course Type
Instructional Language
Programs that can take the course
Industrial Engineering Undergraduate Program
Biomedical Engineering Undergraduate Program
Materials Science and Nanotechnology Engineering Undergraduate Program
Electrical and Electronics Engineering Undergraduate Program
Mechanical Engineering Undergraduate Programs
The role of engineering economics in decision-making processes, Identifying the requirements for engineering economic analysis, the significance of accurate cost and revenue estimation and the importance of sensitivity analysis in predictions, the limitations of engineering economics, fundamental concepts of engineering economics, incorporating the time value of money into economic analyses using engineering economic tools, accounting for inflation in engineering economic calculations, depreciation and tax calculations
Textbook and / or References
1. Contemporary Engineering Economics, 4th Edition, Chan S. Park, Prentice Hall, 2007.
2. Course notes (ppt)
3. Mühendislik Ekonomisi- Prensipler ve Uygulamalar, 8. Baskı, O. Okka, Nobel Akademik Yay., 2020.
This course aims to develop economic decision-making competence, enhance cost analysis and financial computation skills, teach investment and project evaluation techniques, and improve decision-making abilities under uncertainty
1. Understand the fundamental concepts of engineering economics, including simple and compound interest calculations, the time value of money, and their importance in engineering decisions
2. Conduct present value, future value, and annuity analyses
3. Comprehend and calculate the internal rate of return (IRR) and inflation impact
4. Develop cash flow statements for projects and economically compare alternative engineering projects (investments)
5. Recognize and apply depreciation models
6. Utilize Excel software as a problem-solving tool in engineering economics
7. Develop teamwork and written communication skills
8. Conduct literature reviews on technological change and develop critical thinking skills
Week 1: Introduction to engineering economics; cost concepts and future costs
Week 2: Money management and the time value of money: interest calculation methods – single cash flow, uniform payment series
Week 3: Interest calculation methods – arithmetic gradient series, geometric gradient series, irregular payment series; nominal and effective interest rate calculations
Week 4: Equivalence analysis with effective interest rates, debt/loan management
Week 5: Investment decisions for financial assets
Week 6: Present value analysis, future value analysis, capital equivalence
Week 7: Evaluation of mutually exclusive projects; annual equivalent analysis
Week 8: Payback period analysis
Week 9: Internal rate of return (IRR) criterion
Week 10: Inflation and its impact on cash flows
Week 11: Depreciation and its various methods
Week 12: Development of project cash flows
Tentative Assesment Methods
• Midterm 40 %
• Final 40 %
• Project 20 %
|
Program Outcome
*
|
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
|
Course Outcome
|
|---|
| 1 |
|
B
|
|
A
|
|
C
|
|
|
|
|
|
|
|
| 2 |
|
B
|
|
A
|
|
C
|
|
|
|
|
|
|
|
| 3 |
|
B
|
|
A
|
|
C
|
|
|
|
|
|
|
|
| 4 |
|
B
|
|
A
|
|
C
|
|
|
|
|
|
|
|
| 5 |
|
B
|
|
A
|
|
C
|
|
|
|
|
|
|
|
| 6 |
|
B
|
|
A, B
|
|
C
|
|
|
|
|
|
|
|
| 7 |
|
|
|
|
|
B, C
|
C
|
|
|
|
|
|
|
| 8 |
|
|
|
|
|
|
|
|
|
|
|
|
|