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Course Description

This course covers the principles of project evaluation; analysis of capital and operating costs of engineering alternatives, benefit-cost ratio; break-even studies, evaluations recognizing risk, replacement and retirement of assets; tax considerations, influence of sources of funds.

Learning Outcomes

This course is designed to teach engineers how to evaluate different alternative investments/projects in order to find the one that makes the most economical sense. You will learn about how the value of money changes over time due to interest and inflation. You will also learn how to work with cash flows that take place at different times over the life of the project. This knowledge will then be used with different evaluation techniques to determine whether an investment is worth making.

Course Topics

By the end of this course, you should be able to:

1. Apply the concepts of time-value of money, taking into consideration the impact of interest on investment decisions by comparing between potential candidates and identifying the better investment;

2. Determine the book value of an asset for accounting and tax purposes by applying knowledge of depreciation;

3. Explain how assets having different life expectancies cannot be directly compared through use of common life concepts or by using annual worth comparisons;

4. Evaluate different project/investment opportunities to select the most beneficial by applying the appropriate evaluation method;

5. Determine the rate of return of a project through analysis of cash flows, whether they are positive or negative, and how frequently they change from positive to negative;

6. Select the appropriate evaluation method for comparing between alternate investment opportunities by identifying important factors such as life expectancy and measure of interest (dollar value vs. rate of return);

7. Outline basic accounting concepts through identification of elements of a balance sheet and income statement;

8. Evaluate when an asset should be replaced through the use of replacement analysis both before and after tax by determining its economic life;

9. Determine the after-tax viability of a project through the application of after-tax cash flow analysis using capital tax factors, capital salvage factors, tax rates, and depreciation rates;

10. Calculate asset/project value due to inflation through application of concepts of real dollars versus actual dollars;

11. Recommend public-sector projects to be implemented by applying benefit cost ratio analysis; and

12. Determine appropriate investment to make taking into consideration uncertainty and risk.

 

 

 

Additional Requirements

Prerequisite(s):  MATH*1210

Restriction(s):    Registration in the Engineering program

Assessment

Assessment Item Weight
Quizzes 42%
Mini Project 10%
Online Final Exam 48%
Total 100%

Note: The two quizzes and the final exam will be done online using Respondus Lock-Down Browser and Monitor. 

 

Note:

Additional Technical Requirements

This course will use the following:

  • Respondus tool to invigilate one or more exams. 

Please view the Technical Considerations for each.

Technical Requirements

You are responsible for ensuring that your computer system meets the necessary system requirements. Use the browser check tool to ensure your browser settings are compatible and up to date (results will be displayed in a new browser window).

*Course details are subject to change.

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Section Title
Engineering Economics
Type
Online
Dates
January 11, 2021 to April 12, 2021
Contact Hours
36.0
Delivery Options
Online  
Course Fee(s)
Domestic Tuition Fee (0.5 units) $683.39 Click here to get more information
International Tuition Fee (0.5 units) $2,748.00 Click here to get more information
Available for Credit
0.5 units
Reading List / Textbook

A textbook is NOT required for this course.

There is a required learning resource called: ENGG3240 Course Supplement.

The ENGG3240 Course Supplement MUST be purchased from the University of Guelph Bookstore.

It is however suggested that you use the recommended textbook or a textbook with similar topics to those described in the unit titles, as a reference while you take this course.

Section Notes

Note:  If you are in a degree program at the University of Guelph, please DO NOT register using the link above.  You must register through WebAdvisor.

A textbook is NOT required for this course.

There is a required learning resource called: ENGG3240 Course Supplement.

The ENGG3240 Course Supplement (9780901058805) MUST be purchased from the University of Guelph Bookstore.

It is however suggested that you use the recommended textbook or a textbook with similar topics to those described in the unit titles, as a reference while you take this course.

Section Materials
  • Textbook (Confirmed) (Optional) Engineering Economics: Financial Decision Making for Engineers by N. M. Fraser, E. M. Jewkes, M. Pirnia © 2017 Pearson 6th edition ISBN 9780133405538 Print or 9780134476520 Electronic
  • Course Reader (Confirmed) (Mandatory) ENGG3240 Course Supplement: Compound Interest Factors for Discrete Compounding, Discrete Cash Flow © 2020 ISBN 9780901058805
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