Decision Economics (IE 303)

2020 Summer
Faculty of Engineering and Natural Sciences
Industrial Engineering(IE)
3
6.00 / 6.00 ECTS (for students admitted in the 2013-14 Academic Year or following years)
Bülent Sezen bsezen@sabanciuniv.edu,
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English
Undergraduate
--
Formal lecture,Recitation
Communicative,Discussion based learning
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CONTENT

Time value of money; discounted cash flow analysis; break-even analysis; evaluation of alternative capital investment proposals considering depreciation, inflation, taxes; make or buy analysis; replacement analysis; bonds, stocks, and options; decision making under certainty and risk.

OBJECTIVE

To introduce students the basic principles to be used in analyzing the economic viability of an engineering project.

LEARNING OUTCOME

Apply equivalent worth methods and rate of return methods to determine the best alternative to carry out an engineering project;

Carry out interest computations and conversions;
Compute after tax cash flows;
Use spreadsheets to conduct engineering economic analysis;
Identify the relevance of engineering economics analysis in everyday life;
Appreciate the use of spreadsheets in engineering economic analysis;
Identify relevant problems that need engineering economic analysis;
Use the methods and concepts with real life data.

ASSESSMENT METHODS and CRITERIA

  Percentage (%)
Final 60
Midterm 40

RECOMENDED or REQUIRED READINGS

Textbook

Engineering Economy; William G. Sullivan, Elin M. Wicks, C. Patrick Koelling, Pearson, 15th Edition.