ISyE 313: Engineering Economic Analysis

Home : Courses :
ISyE 313 - Engineering Economic Analysis

WWW Resources

Timetable Information

Engineering Courses on the Web (eCOW)

eCOW2 Courses

Create eCOW2 Course Homepage

eCOW Courses

Archive

ISYE 313: Engineering Economic Analysis, Fall 2007 (Bier, Vicki), formerly Course Homepage of instructor Bier, Vicki

ISYE 313: Engineering Economic Analysis, Spring 2004 (Ramirez), formerly Course Homepage of Ramirez

ISYE 313: Engineering Economic Analysis, Fall 1999 (Sainfort)

Edit This Page

Catalog Description

313 Engineering Economic Analysis. (Crosslisted with Acct I S 313.) I, II; 3 cr. Financial accounting principles and cost systems, interpretation and use of accounting reports and supplemental information for engineering economic analyses, consideration of cost-volume-profit analyses, use of discounted cash flow techniques, flexible budgeting, transfer pricing, and capital budgeting. P: So st. Open only to engr stdts.

Course Prerequisite(s)

Sophomore standing

Prerequisite knowledge and/or skills

Basic mathematics, such as powers and exponents
Linear interpolation
Ability to generate and understand simple graphs

Textbook(s) and/or other required material

W.G. Sullivan, Elin M. Wicks, and James T. Luxhoj, "Engineering Economy," 12th ed., Prentice Hall, 2003; ISBN 0-13-067338-2.

Course objectives

Understand the major capabilities and limitations of discounted cash flow analysis for evaluating proposed capital investments.
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.
Be able to communicate the results of the modeling process to management and other non-specialist users of engineering analyses.

Topics covered

Time value of money
Present and future worth
Annual equivalent cash flow
Internal rate of return
Minimum acceptable rate of return
Discrete and continuous compounding
Inflation
Financing
Payback period
Sensitivity analysis
Uncertainty and risk analysis
Alternatives with unequal lives
Retirement and replacement analysis
Depreciation
Income taxes
Break-even analysis
Cost/benefit analysis

Class/laboratory schedule

Course meets 3 times/week for 50 minutes
Course includes an optional 50-minute discussion section that meets once/week

Contribution of course to meeting the professional component

This course contributes primarily to the students' knowledge of engineering topics, but does not provide design experience.

The following statement indicates which of the following considerations are included in this course: economic, environmental, ethical, political, societal, health and safety, manufacturability, sustainability.

Economic and societal considerations are included in this course

Relationship of course to undergraduate degree program objectives and outcomes

This course serves students in a variety of engineering majors. The information below describes how the course contributes to the college's educational objectives.

Students learn to apply knowledge of mathematics, economics, and engineering principles to solve engineering problems. Students learn to use appropriate techniques, skills, and tools to identify, formulate, analyze, and solve engineering economic problems using computer tools such as spreadsheets Students develop an understanding of managerial accounting and economic principles Students get practice in writing clearly, using graphics effectively, and justifying solutions to engineering economics problems

Assessment of student progress toward course objectives

Weekly homework assignments
Two in-class examinations
A two-hour final examination

Person(s) who prepared this description

Stephen M. Robinson

Copyright 2007 The Board of Regents of the University of Wisconsin System
Date last modified: 28-Dec-2007
Content by: prpeters@engr.wisc.edu
Accessibility

Web services
Thank you for visiting http://www.engr.wisc.edu//ie/courses/ie313.html