EGN3613: ECONOMICS FOR ENGINEERS, SECTION 81607
Fall Semester, 2009 August 25 to December 10, 2009
Class Time Period: TTH 10:50A.M. –11:40A.M.
Classroom: 42/2105
2 credits. The course is an introduction to the economic tools necessary for basic business decision-making and project evaluation. The determination of prices and costs, the time value of money, cash flow and present worth analysis, rates of return, the effects of inflation, depreciation and tax effects, breakeven and benefit-cost analysis.
Instructor: Dr. Paul M. Mason Office: 42/3003 Telephone: (904) 6202640/2641 E-mail: Homepage: Office Hours: TTH9:50 –10:45 and by appointment
I. REQUIRED TEXTBOOKS
Donald G. Newnan, Jerome P. Lavelle and Ted G. Eschenbach. Engineering Economic Analysis, Ninth edition or Tenth Edition. Dallas, Texas: Engineering Press, 2004 or 2008.
II. OBJECTIVES AND APPROACH OF THE COURSE
This course is designed to give the undergraduate engineering student an introduction to the tools needed for decision-making in a business environment, and for project evaluation. The course begins with a review of the market system and its role in establishing prices and costs. The time value of money is then covered in detail, as it relates to the cash flows associated with projects and investments. Included is the consideration of equivalence concepts, discount rates, present value, gradients, and internal rate of return. Both breakeven and benefit-cost analysis is then covered, along with the effects of taxes and depreciation.
Classes are conducted using a combination of lecture and discussion, with ample opportunity for student reaction and interaction. Emphasis is placed upon the effective application of financial models.
III. PREREQUISITES OF THE COURSE
Students are expected to have successfully completed their general education requirements.
IV. CLASSROOM PROTOCOL
Because we must cover a lot of material in a short period of time, it is necessary that we all cooperate in using the time as efficiently as possible. Excessive chatter, horseplay, or other noise making that disturbs other students is not acceptable. Continued abuse will result in the offending students being removed from the classroom or from the course. Beepers and cellular telephones must be set to vibrate mode, so that they do not disturb the class. NO FOOD OR DRINKS ARE PERMITTED IN THE CLASSROOM!
V. ASSIGNMENTS
Assignments for each class include one or more chapters in the assigned textbook. Selected homework problems will also be assigned. All classroom work and all examinations will be conducted on the assumption that textbook material assigned up to that time has been mastered. MATERIALS FOR THE COURSE ARE AVAILABLE ON MY WEBPAGE () AND ON THE BLACKBOARD SITE FOR THE COURSE.
VI. COURSE REQUIREMENTS
The final course grade will be based on two take-home examinations given during the semester, a cumulative final examination given at the end of the semester, and submitted homework problems. The weight of these requirements is as follows:
First examination 25% of final grade
Second examination 25% of final grade
Homework problems 25% of final grade
Final examination 25% of final grade
The three examinations and the homework are each worth 100 points.
Your final numerical grade will be computed as follows:
(First examination grade x .25) + (Second examination grade x .25) + (Final examination grade x .25) + (Homework grade x .25) = Final numerical grade
Letter grades will be assigned as follows (there are no + or - grades):
90 -100A
80 - 89B
70 - 79C
60 - 69D
59 and belowF
II. CLASS SCHEDULEDate / Topics to be Covered / Textbook Assignment
August 25 / Introduction and Plan for the Semester / Chapter 1
August 27 / Project Evaluation, Prices, and Costs / Chapters 1
Sept. 1 / More on Markets, Prices and Costs / Chapter 2
Sept. 3,8 / Benefits and Cash Flow Diagrams / Chapter 2
Sept. 10,15 / The Time Value of Money and Interest Rates / Chapter 3
Sept. 17 / Equivalence Concepts / Chapter 4
Sept. 22 / More Interest Formulas / Chapter 4
Sept. 24 / Spreadsheets and Economic Analysis / Chapter 4
Sept. 29 / First Examination Distributed (Due Oct. 6) / Chapters 1-4
Oct. 1, 6 / More Present Worth Analysis / Chapter 5
Oct. 8 / Underlying Assumptions of PWA / Chapter 5
Oct. 13,15 / Annual Cash Flow Analysis / Chapter 6
Oct. 20, 22 / Spreadsheet Analysis of Loans, Intro to ROR / Chapter 6,7
Oct. 27 / Rate of Return Analysis / Chapter 7
Oct. 29 / Multiple IRRs / Chapter 7
Nov. 3 / Incremental Analysis / Chapter 7A
Nov. 5, 10 / EndIncremental Analysis(6thLAST DAY TO WITHDRAW) / Chapter 8
Nov. 12 / Review and Second Examination Distributed / Chapters 5-8
Nov. 17 / Other Analytical Techniques / Chapter 9
Nov. 19,24 / Sensitivity and B.E. Analysis(test 2 due 11/21) / Chapter 9
Nov. 26 / More on Spreadsheets and Graphing / Chapter 9
Dec. 1 / How to Handle Depreciation / Chapter 11
Dec. 3 / More Depreciation / Chapter 11
Dec. 10 / Final Examination (9:00 – 10:50)
Regular Classroom / Chapters 1-11 not 10
VIII. UNIVERSITY POLICY ON ACADEMIC INTEGRITY
In order to protect the integrity of the teaching, learning, and evaluation process, the University of North Florida expects all members of the academic community to respect the principle of academic freedom and to behave with academic integrity. Briefly stated, academic misconduct shall consist of any attempt to misrepresent one's performance on any exercise submitted for evaluation. Violations of academic integrity include, but are not limited to:
Cheating: Intentional use of, or attempting to use unauthorized materials, information, notes, study aids or other devices in any academic exercise is wrong and should not occur. This definition includes unauthorized communication of information during an academic exercise.
Fabrication and Falsification: Intentional and unauthorized alteration or invention of any information or citation in an academic exercise. Falsification is a matter of altering information, while fabrication is a matter of inventing or counterfeiting information for use in any academic exercise.
Multiple Submissions: The submission of substantial portions of the same academic work for credit (including oral reports) more than once without authorization.
Plagiarism: Intentionally or knowingly presenting the work of another as one's own (i.e., without proper acknowledgment of the source). The sole exception to the requirement of acknowledging sources is when the ideas, information, etc., are common knowledge.
Abuse of Academic Materials: Intentionally or knowingly destroying, stealing, or making inaccessible library or other academic resource materials.
Complicity in Academic Dishonesty: Intentionally or knowingly helping or attempting to help another commit an act of academic dishonesty.
IX. SOME HINTS ON NOTETAKING AND STUDYING
1. Use the "splitpage" approach when taking notes in the classroom. By using this approach you will quickly discover what it is that you do not know, and you will translate what the instructor has said into your own words. Draw a line down the middle of a page in your notebook. Take notes during class on the left hand side of the page. After class, REVIEW your notes line by line. If you understand what you have written during class, use the right hand side of the page to correct and embellish it, and express it in your own words. If you don't understand what you have written, underline it, and ask about it during the next class session. In any event, translate the material into your own words.
2. An alternative to the "split page" approach is to identify key words, notes, and reflections and conclusions in your notebook.
3. Audio tape the classes, if you wish. I have no objection. Taping increases the likelihood of your being able to fill in the gaps in your notes. However, any derogatory comments I make about administration, my wife or my children may not be used against me!
4. Try to be an active learner in the classroom. If you don't understand something, ask questions. Also try to figure out where the instructor is heading in his lecture. Ask yourself, "If I were the instructor, what materials would I present next to provide a clear and logical picture?"
5. You may wish to form a study group with other members of the class, and exchange ideas and information. Study groups are a useful forum for identifying potential examination questions, and formulating answers for them.
6. Learning objectives will be stated for each class. Keep track of them, and use them to identify the major ideas and activities that you should master. Relate the material in your notes to the learning objectives.
7. Use your textbook and supporting materials wisely. Interactive computer programs, where available, give good practice in model manipulation. Textbook chapters have introductory and summary materials that identify the major points covered.
X. WITHDRAWAL FROM COURSES
Students may withdraw from courses until the date indicated for “Last Day to Withdraw” in the Course Schedule (November 6th). A withdrawal form from the Office of Records and Registration must be completed, and a grade of W will be placed on the student=s transcript. Students may petition for late withdrawals (after the deadline) if there are circumstances clearly beyond the students= control. If the petition is approved by the appropriate petitions committee, a grade of W (withdrawn), WP (withdrawn-passing) or WF (withdrawn-failing) will be assigned by the instructor. A grade of WF is treated the same as a grade of F, and is included in the student=s grade point average.