Anadolu University

Industrial Engineering

IKT 356: Engineering Economics

Fall 2018

Instructor: Onur Kaya

Office: End 201

Phone: 6439

e-mail:

TA:Müge Soyuöz Acar

Course Overview:

This course will introduce various concepts and methods of economic analysis in engineering, including the “time value of money” and its effect on economic decisions, economic equivalence, economic measures of worth, cash flow analysis, equipment depreciation, effects of taxation and inflation, decision making under uncertainty, capital budgeting and replacement decisions.

Learning Outcomes:

Calculate the value of money according to time, compare single payment in present with single payment in future and with annual payment, calculate the value of money using arithmetic and geometric gradients, compare alternative investment decisionsusing present worth, future worth and annual worth methods, compare alternatives using rate of return and incremental rate of return methods, perform benefit/cost analysis, find the most economical solution among alternatives in engineering problems, learn the fundamental knowledge about investment planning

Textbook:

  • Park, Chan S., Fundamentals of Engineering Economics, Pearson Prentice Hall.
  • Textbook website:
  • The following books (in addition to the textbook) are useful:
  • Sullivan, W.G., Bontadelli, J.A., Wicks, E.M., Engineering Economy, 11th ed., Prentice Hall 2000.
  • Thuesen, G.J., Fabrycky, W.J., Engineering Economy, 9th ed., Prentice Hall 2001.

Course Topics

  • Introduction to Engineering Economics (Chapter 1)
  • Time Value of Money (Chapter 2)
  • Money Management (Chapter 3)
  • Inflation (Chapter 4)
  • Present Worth and Annual Equivalence Analysis(Chapters 5 and 6)
  • Rate of Return Analysis (Chapter 7)
  • Benefit-Cost Analysis (Chapter 8)
  • Depreciation and Income Taxes (Chapter 9)
  • Cash Flow Analysis (Chapter 10)
  • Handling Project Uncertainty (Chapter 11)

Grading:

  • Midterm1: 20%
  • Midterm 2: 20%
  • Final exam: 40%
  • Homework and quizzes: 20%
  • Attendance and participation: Might effect your letter grade at the end of the semester.

Policy:

  • Course material including syllabus, lecture notes and homeworks will be placed on the web reserved for this course.
  • Each student will submit an individual write-up of any assigned homework.
  • The topics to be covered and/or grade distribution is subject to change.

Academic Integrity and Ethics:

Honesty and trust are important to all of us as individuals. Academic dishonesty in the form of cheating, plagiarism, or collusion are serious offenses and are not tolerated at Anadolu University. University Academic Regulations and the Regulations for Student Disciplinary Matters clearly define the policy and the disciplinary action to be taken in case of academic dishonesty. Failure in academic integrity may lead to suspension and expulsion from the University.

Cheating includes, but is not limited to, copying from a classmate or providing answers or information, either written or oral, to others. Plagiarism is borrowing or using someone else's writing or ideas without giving written acknowledgment to the author. This includes copying from a fellow student's paper or from a text (whether printed or electronic) without properly citing the source. Collusion is getting unauthorized help from another person or having someone else write a paper or assignment.

Cheating, plagiarism, and collusion are serious offences resulting in an F grade and disciplinary action.Students and faculty adhere to the following principles of academic honesty at Anadolu University:

1.Individual accountability for all individual work, written or oral. Copying from others or providing answers or information, written or oral, to others is cheating.

2.Providing proper acknowledgement of original author. Copying from another student's paper or from another text without written acknowledgement is plagiarism.

3.Authorized teamwork. Unauthorized help from another person or having someone else write one's paper or assignment is collusion.

Please refer to the following webpages for detailed information about academic integrity and ethics in science:

If you have further questions, please ask your advisor or instructor for assistance.