By the end of the course, the students will be able to: | 4 Solve problems involving interest and the time value of money; | 2. Evaluate project alternatives by applying engineering ‘mic principles and methods and select the most | economically efficient one 3. Deal with risk and uncertainty in project outcomes by applying the basic economic decision making concepts 4, Analyze the principle of break-even using the break-even relationship between the total revenue and the ‘corresponding fixed and variable costs. 6. Reflect on personal transformation along TIP graduate attributes. | . Student Outcomes Addressed by the Course Apply knowledge of mathematics, science, and engineering fo solve complex engineering problems (student outcome a) 2, Identify, formulate, and solve complex engineering problems (student outcome b) 3, Solve complex engineering problems by designing systems, components, or processes to mest specifications within realistic constraints such as economic, environmental, cultura, social, societal politcal, ethical, health and safety, manufacturabilty, ans! sustainability in accordance with standards (student outcome c) COURSE TOPICS za) Prelim Period (Weeks 1-6) |. Introduction: TIP Vision and Mission; TIP Graduate Attributes’ Institutional Intended Learning Outcomes; Program Educational Objectives! Student Outcomes; Course Objectives! Course Intended Learning Outcomes; Course Policies Il Introduction to Engineering Economy Ill, The Economic Environment: Consumer and producer goods and services; necessities and luxuries; market situation; the law of supply and demand; the law of diminishing returns IV. Interest and Money-time Relationships: simple interest: compound interest; cash-flow diagrams; rates of | interest; equation of value; discount; annuities: capita’ 6 rst; amortization schedule | Midterm Period (Weeks 7-12) ' V, Depreciation: definitions of value; purposes of depreciation; types of depreciation; depreciation methods straight line method, sinking fund method, declining balance method, sum-of-the-years-digits method, service ‘output method VI. Capital Financing: equity and borrowed capital; types of business organizations; methods of bond retirement; bond value VIL. Selections in Present Economy | Final Period (Weeks 13-18) VII. Basic Methods for Making Economy Studies: rate of return method; annual worth method; present worth method; future worth method; payback period methodTECHNOLOGICAL NSTITUTE OF THE PHILIPPINES (COURSE SYLLABUS See oe Counce | ME 005 ENGINEERING ECONOMY (2012 Curriculum) EECO 423 ENGINEERINGECONOMY (2008 Curioulum) CREDITS 3 units (3 units lecture) CONTACT HOURS 3hours lecture | i Engr. Am James NM. Vengua | [epee Faculty Member of Mechanical Engineering TEXTBOOK Sulivan, W. G. (2012). Engineering Economy. New Jersey: Pearson Education. a" Blank L.(2072). Engineering edonomy, hed. New Vork: MeGraw-Fil 7] tong, Park, C. S. (2011). Contemporary engineering economics, 5th ed, New Jersey: desavillan Pearson Education, Inc Gupta, P. K. 2013), Problems in operation research: (principles and solutions) for engineering computer science, management, economics, statistics, mathematics. New Delhi, India: $. Chand & Company Pvt. Lid. Park, Chan S, 3° Edition (2013). Fundamentals of Engineering Economics. New | Jersey: Pearson Education, Inc E.W, McAlister, Ed. (2014), Pipeline rules of thumb handbook a manualof quick, | accurate solutions to everyday pipeline engineering problems Waltham, Massachusetts: Gulf Professional Publishing Other Supplemental | Materials | SPECIFIC COURSE INFORMATION a, Course Description Concepts of the time value of money and equivalence; basic economy study methods’ decisions under | certainty; decisions recognizing risk; and decisions edmiting uncertainty b, Prerequisites Co-requisites ¢. Course Classification Required (Requiredlelectivel selected elective) SPECIFIC GOALS FOR THE COURSE a, Course Objectives {Develop the students" abilty to solve problems in engineering projec that require interest and money: time relationships 2. Provide the students skils in the computation ofthe depreciation of an engineering tools or equipment | and structure or building, 3. Enable the students to compare diferent alternatives that can be used in an engineering proect using the basic methods for making economy studies and the selections in present economy 3+year standing b. Course Outcomes