Computer Engineering (English)
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

General course introduction information

Course Code:

IE318

Course Name:

Engineering Economy

Course Semester:

Fall

Course Credits:

Theoretical	Practical	Credit	ECTS
3	0	3	6

Language of instruction:

Course Requisites:

Does the Course Require Work Experience?:

Type of course:

Compulsory

Course Level:

Bachelor

TR-NQF-HE:6. Master`s Degree

QF-EHEA:First Cycle

EQF-LLL:6. Master`s Degree

Mode of Delivery:

Face to face

Course Coordinator :

Dr.Öğr.Üyesi MEHMET TEVFİK ÇOBANOĞLU

Course Lecturer(s):

Dr.Öğr.Üyesi MEHMET TEVFİK ÇOBANOĞLU

Course Assistants:

Course Objective and Content

Course Objectives:

I. To gain the ability of applying economic analyses in the related engineering discipline,
İİ. To understand the major capabilities and limitations of discounted cash flow analysis for evaluating proposed capital investments.
İİİ. To be able to recognize, formulate, and analyze cash flow models in practical situations. Understand the assumptions underlying these models, and the effects on the modeling process when these assumptions do not hold.
IV. To be able to communicate the results of the modeling process to management and other non-specialist users of engineering analyses.

Course Content:

Terminology and cash flow diagrams. Interest factors and their use. Nominal and effective interest rates. Continuous compounding. Present worth and capitalized cost analysis. Uniform annual cash flow analysis. Rate of return analysis. Internal and external rates of return. Benefit / cost ratio analysis. Payback period analysis. Replacement analysis. Inflation-interest relations.
Depreciation. Depletion. After-tax economic analysis. Breakeven analysis. Capital budgeting under budget constraints. Sensitivity analysis and decision trees. Investment analyses under risk.

Learning Outcomes

The students who have succeeded in this course;

Learning Outcomes

1 - Knowledge
Theoretical - Conceptual
2 - Skills
Cognitive - Practical
1) Decision steps for investment in the companies and their application with different examples from industry
3 - Competences
Communication and Social Competence
Learning Competence
1) Factors and parameters during investment projects wil be discussed and measurements with several senarios
Field Specific Competence
1) Gaining the ability to make comprehensive analysis in daily decision making, business life and company practices, to determine decision criteria and to make the right decision with environmental, personal, political and mquantitative and qualitative layers.
Competence to Work Independently and Take Responsibility
1) Decision criterias for finding right decisions

Lesson Plan

Week	Subject	Related Preparation
1)	Replacement analysis, defender and challenger, economic life
1)	Basic concepts, graphs, role of engineering economics in decision making, discounting and equivalence
2)	Discounting factors and their usage; usage of multiple factors; nominal and effective interest rates; continuous discounting
3)	Present worth analysis; capitalized cost analysis; equal life alternatives; different life alternatives
4)	Equivalent uniform annual cash flow analysis; equal life alternatives; different life alternatives; rate of return calculations; number of sign changes in cash flows and external investments
5)	Incremental rate of return analysis, benefit/cost ratio analysis; future worth analysis
6)	Replacement analysis, defender and challenger, economic life
8)	Depreciation and depletion, income taxes, after tax cash flow, inflation and interest
9)	Breakeven analysis; capital budgeting for independent investment alternatives
10)	Sensitivity analysis, expected value decisions, decision trees
10)	Sensitivity analysis, expected value decisions, decision trees
11)	Decision making under risk, uncertainty and risk, simulation, certainty equivalent, risk adjusted cash flow approach
12)	Decision making under risk, uncertainty and risk, simulation, certainty equivalent, risk adjusted cash flow approach Multiple criteria level
13)	Multiple criteria evaluation of investments
14)	Multiple criteria evaluation of investments

Sources

Course Notes / Textbooks:	Park, C.S., Sharp-Bette, G.P. Advanced Engineering Economics, John Wiley and Sons, Inc., 1990.
References:	Leland T. Blank, Anthony Tarquin, Engineering Economy, 6th Edition, McGraw-Hill, 2009. Park, C.S., Sharp-Bette, G.P. Advanced Engineering Economics, John Wiley and Sons, Inc., 1990.

Course-Program Learning Outcome Relationship

Learning Outcomes	1	2	3	4
Program Outcomes
1) Sufficient knowledge in mathematics, science and engineering related to their branches; the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2) The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3) The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4) Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5) Ability to design experiments, conduct experiments, collect data, analyze and interpret results for examination of engineering problems.
6) The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7) Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge.
8) Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9) Professional and ethical responsibility.
10) Information on project management and practices in business life such as risk management and change management; awareness about entrepreneurship, innovation and sustainable development.
11) Information on the effects of engineering applications on health, environment and safety in the universal and social dimensions and the problems of the times; awareness of the legal consequences of engineering solutions.

Course - Learning Outcome Relationship

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Sufficient knowledge in mathematics, science and engineering related to their branches; the ability to apply theoretical and practical knowledge in these areas to model and solve engineering problems.
2)	The ability to identify, formulate, and solve complex engineering problems; selecting and applying appropriate analysis and modeling methods for this purpose.
3)	The ability to design a complex system, process, device or product under realistic constraints and conditions to meet specific requirements; the ability to apply modern design methods for this purpose. (Realistic constraints and conditions include such issues as economy, environmental issues, sustainability, manufacturability, ethics, health, safety, social and political issues, according to the nature of design.)
4)	Ability to develop, select and use modern techniques and tools necessary for engineering applications; ability to use information technologies effectively.
5)	Ability to design experiments, conduct experiments, collect data, analyze and interpret results for examination of engineering problems.
6)	The ability to work effectively in disciplinary and multidisciplinary teams; individual work skill.
7)	Effective communication skills in Turkish oral and written communication; at least one foreign language knowledge.
8)	Awareness of the need for lifelong learning; access to knowledge, ability to follow developments in science and technology, and constant self-renewal.
9)	Professional and ethical responsibility.
10)	Information on project management and practices in business life such as risk management and change management; awareness about entrepreneurship, innovation and sustainable development.
11)	Information on the effects of engineering applications on health, environment and safety in the universal and social dimensions and the problems of the times; awareness of the legal consequences of engineering solutions.

Learning Activity and Teaching Methods

Expression
Brainstorming/ Six tihnking hats
Individual study and homework
Lesson
Reading
Homework
Problem Solving
Role Playing
Q&A / Discussion
Application (Modelling, Design, Model, Simulation, Experiment etc.)
Case Study

Assessment & Grading Methods and Criteria

Oral Examination
Individual Project
Presentation
Case study presentation

Assessment & Grading

Semester Requirements	Number of Activities	Level of Contribution
Quizzes	5	% 15
Project	1	% 15
Midterms	1	% 30
Final	1	% 40
total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
total		% 100

Workload and ECTS Credit Grading

Activities	Number of Activities	Duration (Hours)	Workload
Presentations / Seminar	1	3	3
Homework Assignments	1	3	3
Quizzes	5	5	25
Midterms	1	1	1
Final	1	1	1
Total Workload			33