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GE-006-056, CE 281, TECHNOLOGICAL ECONOMICS – GENERAL EDUCATION AREA D2 COURSE

CALIFORNIA STATE POLYTECHNIC UNIVERSITY, POMONA

ACADEMIC SENATE

GENERAL EDUCATION COMMITTEE

REPORT TO

THE ACADEMIC SENATE

GE-006-056

CE 281, TECHNOLOGICAL ECONOMICS

(CE 201, Engineering Economics)

GENERAL EDUCATION AREA D2 COURSE

General Education Committee Date: 4/26/06

Executive Committee

Received and Forwarded Date: 5/03/06

Academic Senate Date: 5/10/06

First Reading

7/19/06

Second Reading

Background

The College of Engineering is proposing CE 281 Technological Economics as a General Education course for area D2, History, Economics, and Political Science.

Resources

Nestor Ruiz, Eric McLaughlin

Discussion

This course was referred to the General Education Committee on January 25, 2006. Initially the course was numbered CE 201, but this was changed to CE 281 to avoid possible confusion with EC 201; also the title was changed from Engineering Economics to Technological Economics to better reflect the actual course content and the broadened appeal the course would have for non-engineering students as well.

The course deals with financial analysis in a professional/technological project setting, with an emphasis on numerical aspects. Although there is some overlap with several different FRL courses, no single course duplicates the content of this course.

At the suggestion of members of the GE Committee section V (Course Description) of the ECO was considerably expanded to give a more detailed view of course content and coverage. There are no prerequisites other than Excel and Powerpoint computer skills. Communication skills include writing (homework, two exams, two book reports) an oral presentation with Powerpoint, and a research project with software and presentation. Learning outcomes assessment includes an assessment of general education aspects of the course.

Recommendation

The GE Committee has found this course to be in compliance with the guidelines for area D2. There were no comments on the Undergraduate Studies website. The course was approved by the GE Committee on April 26, 2006 and is now forwarded to the Academic Senate for consideration.

CALIFORNIA STATE POLYTECHNIC UNIVERSITY POMONA

CE 281

COURSE OUTLINE

Course Information

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ABET Unit Classification ( 4 Quarter Units)

Department: Civil Engineering
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Math:
Course Number: CE 281
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Basic Science:
Course Title: Technological Economics
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Engineering Topics:
Revision Date: 4/30/06
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Contains significant design content: Yes
Revised by: F. Janger
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Other: 4
Compliant: Catalog 2004/05
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Curriculum Designation: Required

I. Catalog Description

Technological Economics ( 4 )

Principals of economic analysis. Determination of cost analysis and decision making criteria for the practicing engineer, manager or financially motivated individual. Construction and managerial economics: annuities, depreciation, multiple alternatives, replacement, capital budgeting and salvage value. Reading and presentation of two current economic oriented books plus: written reports and oral presentations. A comprehensive personal economic project involving: mortgage, serial payments and investments. Software such as Excel and Mortplan are integrated into course elements. Two lectures, each 2 hours for a total of 4 hours per week. Fulfills GE Area D2.

II. Prerequisites and Corequisites

Prerequisites: Computer skills including: Excel, PowerPoint

Corequisites: None

III. Textbook and/or other Required Material

Text: Blank L., Tarquin A., Engineering Economics, 5th edition, McGraw Hill, NY NY, 2002

References: Park, C., Contempory Engineering Economics, 3rd edition, Prentice Hall, Upper Saddle River, NJ, 2002

Other current non-fiction economically oriented books such as “Fast Food Nation” and “Credit Card Nation”. These books can be ordered on Amazon.com

Required Material:

Access to a personal computer

MSOffice software.

Internet Access

IV. Course Objectives

After completing this course the student will be able to:

1.  Accomplish traditional economic operations involving the time value of money and the effect of interest.

2.  Accomplish engineering economic operations such as depreciation, salvage values, Benefit Cost analysis.

3.  Choose an optimal financial alternative using the aforementioned tools.

4.  Write and use software to facilitate and verify calculations.

5.  Read current economic books and present the material in a coherent manner using PowerPoint.

6.  Integrating course materials and research activities by preparing and presenting a comprehensive, personal economic project.

V. Expanded Course Description

1.  Foundations of Technological Economics. Role of individual in decision making such as the financial comparison of several projects; making best financial estimates of what is expected to occur using computers, mathematics and other tools. Interest rates and rate of return; the time value of money including simple and compound interest, and minimum attractive rate of return and the “rule of 72”. Cash flows; estimating and diagramming cash flows and computer solutions to facilitate complex analyzes. Download software and introduce project.

2.  How time and interest affect money. Exploration of single payment factors such as the payout on a savings account. Uniform-Series Present Worth factor as used in estimating the cumulative value of a retirement plan. Various combinations of financial transactions such as: arithmetic gradients, geometric gradients, determination of interest rates and number of cycles or years. Write tables on Excel.

3.  Combining factors. Refers to non-traditional time sequence of payments or expenditures such as uniform series starting at times other than 1; randomly placed single amounts and equivalence calculations for cash flows involving shifted gradients. Library research, house mortgages and investments.

4.  Nominal and effective interest rates. Understanding nominal and effective interest rates when presented with a car purchase or stock option; determining the effective interest rates for any period as might be presented on a credit card. Students deliver PowerPoint presentation on book no. 1, the current selection is “Fast Food Nation” by Eric Schlosser.

5.  Present Worth Analysis. Identifying mutually exclusive and independent projects and defining a service and revenue alternative such as selecting the best technical method for treating a water supply. Using a plethora of methods to arrive at the optimal financial choice including: equal life alternatives, different-life alternatives, future worth analysis, capitalized cost, payback period and life-cycle cost.

6.  Annual Worth Analysis. Determining best financial choices such as the less expensive of two installment plans by a comparison of cyclic payments, typically on a monthly basis. 401k, insurance, household bills

7.  Rate of Return Analysis. Analysis of alternatives including: the meaning of rate of return, ROR, understanding the difficulties of using the ROR method, determining the maximum value of possible ROR values. 2nd book report currently “Credit Card Nation” by Robert D. Manning

8.  Benefit/Cost Analysis. B/C ratio is usually applied to projects in the public sector such as bridges, interstate highways and public buildings. Identify the differences between public and private alternatives and select the better alternative by incremental B/C analysis. Comprehensive project presentation as a traditional written document and orally to the class.

9.  Demonstrating how the financial tools that are used by project managers apply to common financial decisions of the household.

10. Presentation and discussion of individual projects

VI. Class Schedule

2 sessions per week: Two 2-hours lectures and computer exercises, the latter typically accomplished in a computer laboratory. One session is in a traditional classroom; the second session is in a computer laboratory with one monitor per student.

Contribution of Course to Professional Component

Technological Economics is intended as a breath course. The student learns to manipulate the tools and techniques involved with interest rates and the time value of money enabling a comparison of projects and real costs in a professional project setting. To demonstrate the universality of these tools, the student will also apply them to financial decisions facing the household as well as corporate settings. The student must also use software, primarily Excel, to program and facilitate mundane calculations. The student must also read current economically-oriented books and orally present a synopsis to the group as well as submitting a written book report. A comprehensive personal economic analysis and report is required as well.

VIII. Evaluation of Students

The instructor evaluates outcomes using various methods, including the following:

·  One-on-one discussions during problem-solving sessions and office hours

·  Extensive homework assignment submittals (often 30 problems or more per homework).

·  Examinations (one mid-term and one final)

·  Two book reports and the associated oral presentation using PowerPoint

·  Project involving research, software and presentation.

The student grades are based on the following weighting factors:

Homework 15%; Mid term exam 30%; Final exam 30%; Book reports, 10% and project 15%.

IX. Outcomes Assessment

A. Evaluation of Outcomes

This course will assess whether or not the course objectives have been met by the use of two examinations: midterm and final. Book reports are read and graded typically in the 4th and 8th weeks; power point presentations are graded on the spot. The comprehensive report is submitted, presented and graded in the 10th week. These assessments techniques will test the student’s ability to successfully accomplish the following critical thinking tasks: adsorb and use basic economics formulas such as: present worth, future worth, annuities and sinking funds. Apply the basic knowledge to: attain benefit/cost ratios, economic decision making, use of computer aids, Internet resources and Excel. The basic information is also used to generate a personal financial report including: serial payments, household budget, tax forms and a living will. All projects, presentations and written materials are individual efforts i.e. no group projects.

The final grade in the course will be computed approximately as follows (with flexibility for instructor’s discretion):

Homework 15%

Two book reports and presentations 10%

Project 15%

Mid-term exam 30%

Final exam 30%

B. Assessment of Learning Outcomes

Learning outcomes in the context of general education will be assessed using the following techniques:

1.  Analysis of student examinations.

2.  Discussion and analysis of oral presentations.

3.  Analysis and grading of written submittals.

4.  Presentation and discussion of comprehensive project.

5.  Student survey conducted at the end of the course. This survey will include questions regarding the following:

i.  Ways in which the course drew upon the materials covered in the course

ii. Ways in which the course provided a deeper understanding of the subject matter

iii.  Ways in which the course enabled students to draw upon principles from economics and apply them to specific issues

iv.  Ways in which the instructors promoted critical thinking, problem solving, and reasoning

The course coordinators and faculty will review the data obtained from these assessments and will use them to revise the course content as appropriate.

Student Survey: A student survey will be conducted at the end of each class to assess whether or not the expected outcomes have been met by the specific course as it was taught.

X. Assessment

In oral and or written assignments, students will be asked to address the following questions:

·  Has the course covered the objectives specified in the syllabus?

·  Were course materials consistent with General Education D2 objectives?

·  Comments and criticisms of course content