IME Top Bar

Core Courses

IME 106

IME 335

IME 345

IME 365

IME 370

IME 375

IME 415

IME 451

IME 465

IME 468

IME 470

IME 475

IME 476

IME 480

IME 482

IME 483

IME 484

IME 490

Electives

IME 427

IME 430

IME 458

IME 461

IME 463

IME 466

IME 467

IME 477

Other Courses

IME 198

IME 199

IME 298

IME 299

IME 392

IME 398

IME 399

IME 492

  IME 345 - Engineering Economic Analysis

 

COURSE DESCRIPTION

Industrial and Manufacturing Engineering - Engineering Economic Analysis (3) (3,0)

(IME 345) - Required Course

Fall, Spring, and Summer Semesters 2007 – 2008

 

 

2007-2008

Catalog Data:

345-3 ENGINEERING ECONOMIC ANALYSIS.

Introduction to engineering cost and decision analysis. Utilizing the principles of economic analysis for choice of engineering alternatives and engineering systems. Prerequisites: Upper-division standing in engineering or consent of instructor.

 

 

 

Textbook(s):

Blank, Leland T. and Tarquin, Anthony J., Engineering Economy, Sixth Edition, McGraw-Hill, Inc., New York, 2005.

 

 

 

Coordinator:

Emmanuel S. Eneyo, Professor of Industrial and Manufacturing Engineering.

 

 

 

Topics and Schedule:

1. Introduction and overview (1 hour)
2. Engineering decision-making (3 hours)
3. Mechanics of the time value of money (9 hours)
4. Consideration of inflation (2 hours)
5. Commercial loan transactions (3 hours)
6. Bond valuation (2 hours)
7. Measuring the worth of investments (4 hours)
8. Structural analysis of multiple alternatives (6 hours)
9. Replacement analysis (3 hours)
10. Depreciation and the IRS regulations (3 hours)
11. Income tax considerations in cash flows (3 hours)
12. Economic analysis in the public sector (3 hours)
13. Examinations excluding final exam (3 hours)

 

 

 

Professional Component:

This course introduces technical writing methods for conveying results of economic analysis of engineering design alternatives to junior-level engineering students through a case study application.

 

 

Course Outcomes

Students successfully completing this course will have the ability to:

1.   Understand the mechanics of time value of money and its effects as relating to:

i)    Applications of various interest factors

ii)   Shifted cash flows

iii)   Multiple compounding periods

iv)  Variable interest rates

v)   Bonds valuation

vi)  Inflation analysis

2.   Perform comparison of multiple alternatives using various measures of worth such as:

i)    Present worth analysis

ii)   Capitalized worth analysis

iii)   Payback period analysis

iv)  Annual worth analysis

v)   Rate of return analysis

vi)  Benefit-cost analysis

3.   Perform breakeven and replacement analyses.

4.   Understand depreciation methods and the development of after-tax cash flows.

 

 

Prepared by:

Emmanuel S. Eneyo, Professor of Industrial and Manufacturing Engineering

 

 

Date:

May 12, 2008

 

Program Educational Objective.Outcome

General Course Outcomes

IME 345 – Engineering Economic Analysis

 

1

2

3

4

1.1

 

 

 

 

1.2

 

 

 

 

1.3

 

 

 

 

1.4

 

 

 

 

 

 

 

 

 

2.1

 

 

 

 

2.2

 

 

 

 

2.3

 

 

 

 

2.4

 

 

 

 

 

 

 

 

 

3.1

P

P

P

P

3.2

P

P

P

P

3.3

 

 

P

P

3.4

P

P

P

P

3.5

 

 

 

 

 

 

 

 

 

4.1

 

 

 

P

4.2

 

 

 

 

4.3

 

 

 

 

4.4

 

 

 

 

©2007
Southern Illinois University Edwardsville
Last Updated: June 12, 2008