COLLEGE OF ENGINEERING

COEB 442:ENGINEERING ECONOMICS (CORE)

2 credit hours
Semester 2, 2013/2014

Instructor
Puan Suhaida Mohd Sood
Office : SQ4, IEPRe
Extension number : 2379
E mail add: suhaida@uniten.edu.my
Program
BEPE (Hons); BEEE (Hons); BME(Hons)
Textbook
Contemporary Engineering Economics, Chan S. Park, Prentice Hall, 5th Edition, 2011
Main reference :

Engineering Economy, William G. Sullivan, Elin M.

Wicks, James T. Luxhoj, Prentice Hall, 12th Edition, 2006

Pre-requisites
MEFB 213 : Manufacturing Process, or
EEEB 273 : Electronic Analysis and Design
Course Description
This course is meant to equip the engineering students the fundamental concepts of
engineering economy and process of integrating engineering disciplines with economic
analysis .

This is extremely important in order to make informed financial decisions

in

selecting among viable alternative projects. Emphasis on financial and cost information, money
management, cash flows and project risk.

COEB 442:Semester 2, 13/14

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Course Objective
Upon successful completion of the course, students should be able to develop basic skills and
competencies of making informed financial decisions using appropriate economic analysis
techniques being an intrapreneur or an entrepreneur.
Course Outcomes (CO)
No.

Upon completion of this course, the student should be:

CO1

Identify and explain related terms used in engineering economics.

CO2

Carry out basic analysis of financial statements.

CO3

Apply basic cost terminology used in economic analysis.

CO4

Describe time value of money and equivalence concepts and able to carry out
calculations including loan amortization and effective interest rates

CO5

Interpret the economic feasibility of alternative investments and select/replace

alternatives using payback period, present value, future value, annual worth
and internal rate of return methods.

CO6

Calculate depreciation using the methods prescribed and able to incorporate

depreciation and income taxes values in the economic analysis

PO statements

No

Statement

12

Demonstrate knowledge on
project management principles
and entrepreneurship skills

PO Indicators
a) Demonstrate knowledge on project
management principles (C2,C3)
b)

Demonstrate knowledge on entrepreneurship skills

(C2,C3)*

C2-Cognitive:Comprehension
C3-Cognitive:Application
C4-Cognitive:Analysis

COEB 442:Semester 2, 13/14

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Course Outcomes Program Outcome Matrix

Course
Outcomes

PO1
a

PO2
c

PO3
a

PO4
c

PO5

PO6

PO
7

PO
8

CO1
CO2
CO3
CO4
CO5
CO6
Assessment-Course Outcomes Matrix

Assessments
Quizzes (5%)
Assignments (20%)
Tests (25%)
Final Exam (50%)*

PO12
CO1

PO12
CO2

PO12
CO3

PO12
CO4

PO12
CO5

PO12
CO6

*A student must obtain at least 20% in the final examination to pass the course.
Grading scale
A student must obtain a minimum of 40% to pass this course. The final grade is based on the
percentage scale below:
Grade
A+
A
AB+
B
BC+
C
CD+
D
E

Marks
90
80
75
70
65
60
55
50
45
43
40
0 - 39

Grade Point
4.00
4.00
3.67
3.33
3.00
2.67
2.33
2.00
1.67
1.33
1.00
0.00

COEB 442:Semester 2, 13/14

PO
10

PO9

Page 3

PO
11

Attendance
Attendance is compulsory for all scheduled classes unless otherwise informed by the instructor.
If you have to be absent for any reason, it is your responsibility to make sure that you get all the
materials distributed in the previous class from your classmates and update yourself with the
content of the previous lecture.
Consultation hours
Please e-mail me a day before to set appointment.
Class Schedule
WEEK
1-4
7/10/13-11/10/13
14/10/13-18/10/13
21/10/13-25/10/13
28/10/13-1/11/13

Test 1
15/10 Tues:
Hari Raya Haji

TOPICS
1. BASICS OF FINANCIAL DECISONS AND

CHAPTERS
1,2,3

COST INFORMATION
Engineering Economic Decisions
Accounting and Financial Decision Making
Interest Rate and Economic Equivalence

SEMESTER BREAK

4/11/13-8/11/13
3/11-Sun
Deepavali
5/11-Tues
Awal Muharram

6-12
11/11/13-15/11/13
18/11/13-22/11/13
25/117/13-29/11/13
2/12/13-6/12/13
9/12/13-13/12/13
16/12/13-20/12/13
23/12/13-27/12/13

Test 2
11/12-Wed
Sultan of Selangors
Birthday
25/12-Wed
Christmas

13-14
30/12/13-3/1/14
6/1/14-10/1/14
1/1-Wed
New Year

1. BASICS OF FINANCIAL DECISONS AND

4,8,5,6,7

COST INFORMATION (CONT.)

Understanding Money and Its Management
Cost Concepts Relevant to Decision Making
2.

EVALUATING

BUSINESS

AND

ENGINEERING ASSETS
Present Worth Analysis
Annual Equivalent Worth Analysis
Rate of Return Analysis
3. ANALYSIS OF PROJECT CASH FLOWS

9,10

Depreciation and Corporate Income Taxes

Developing Project Cash Flows

COEB 442:Semester 2, 13/14

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15
13/1/14-17/1/14
14/1-Tues
Maulidur Rasul

4.SPECIAL

TOPICS

IN

ENGINEERING

14,15

ECONOMICS
Replacement Decisions

16-17

Final Exam Week

20/1/14-31/1/14
31/1/14-Friday
Chinese New Year

What is Program Educational Objectives (PEO)?

PEO are objectives that UNITEN graduates should achieve after five (5) years of graduation.
What are Programme Outcomes (PO)?
POs are the expected traits that UNITEN students should have upon graduation.
Summary of Bachelor of Mechanical Engineering (BME), Bachelor of Electrical/Electronic Engineering
(BEEE), Bachelor of Computer and Communication Engineering (BCCE), Bachelor of Electrical Power
Engineering (BEPE) Programme Educational Objectives (PEO)
PEO No.

Program Educational Objectives

UNITEN produces Mechanical Engineering graduates /Electrical Engineering graduates who:

PEO1 Practicing engineers in mechanical / electrical engineering with the ability to venture into energy related business.
PEO2 Hold leadership responsibilities and/or establish their own enterprises.
PEO3 Have professional qualifications/certifications in mechanical / electrical engineering related areas.
PEO4 Engages in activities to enhance knowledge in their professional works
Bachelor of Mechanical Engineering (BME), Bachelor of Electrical/Electronic Engineering (BEEE), Bachelor
of Computer and Communication Engineering (BCCE), Bachelor of Electrical Power Engineering (BEPE)
Programme Outcomes (PO)
Program Outcomes
Students graduating from the Bachelor of Mechanical Engineering (BME), Bachelor of
PO No. Electrical/Electronic Engineering (BEEE), Bachelor of Computer and Communication
Engineering (BCCE), Bachelor of Electrical Power Engineering (BEPE) programmes will have
the ability to:
Statement
PO Indicators
a)

PO1

Apply fundamental knowledge of mathematics,

science and mechanical engineering principles in
solving complex problems.

b)
c)

a)
PO2

Identify, formulate, analyse and solve complex

mechanical engineering problems.

COEB 442:Semester 2, 13/14

b)

Comprehend fundamental knowledge of

mathematics, science and mechanical
engineering principles in solving electrical
engineering problems (C1,C2)
Apply fundamental knowledge of mathematics,
science and mechanical engineering principles in
solving electrical engineering problems (C3, C4)
Apply fundamental knowledge of mathematics,
science and mechanical engineering principles in
solving complex problems (C5,C6)
Identify, formulate and solve mechanical
engineering problems (C3, C4)
Evaluate and synthesise the solution to complex
mechanical engineering problems (C5,C6)

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Program Outcomes

a) Illustrate solutions for mechanical engineering

Design solutions for complex mechanical
PO No. engineering problems that meet specific needs with
PO3
appropriate consideration for public health and
safety, culture, society, and environment.

b)
c)

a)
PO4

PO5

Conduct investigations, interpret data and provide

conclusions in investigating complex problems
related to mechanical engineering.

Create appropriate techniques, select resources,

and apply modern engineering tools to execute
complex engineering activities.

b)
c)

a)
b)
a)

PO6

PO7
PO8

Apply reasoning in assessing societal, health,

safety, legal and cultural issues and the consequent
responsibilities relevant to professional engineering b)
practice

PO10
PO11

Communicate effectively on complex engineering

activities.

b)
c)

Usage of modern tools to execute mechanical

engineering activities (P1,P2)
Manipulation of modern tool to execute complex
engineering activities (P3,P4)
Apply reasoning in assessing societal, legal and
cultural issues and the consequent
responsibilities relevant to professional
engineering practice (C3, C4)
Apply reasoning in assessing health and safety
issues and the consequent responsibilities
relevant to professional engineering practice (C3,
C4)

Communicate effectively by means of oral

presentation (P3)
Communicate effectively by means of report
writing (P3)
Communicate effectively by means of oral
presentation and/or report writing on complex
engineering activities (P3)

Function effectively as an individual and in a group

No sub-indicator (A4)
with the capacity to be a leader.
Acknowledge the need for, and be able to engage in
No sub-indicator (C2)
life-long learning.
c)

PO12

Use research methods for collecting data (C1,

C2)
Analyse and interpret data using engineering
principles and appropriate techniques (C3,C4)
Design and evaluate research methods and
results to provide conclusions for complex
engineering problems. (C5,C6)

Demonstrate knowledge of the impact of

professional engineering solutions in environmental No sub-indicator (C2,C3)
contexts and the need for sustainable development.
Demonstrate commitment to professional and
No sub-indicator (A3)
ethical principles.
a)

PO9

problems with appropriate consideration for

public health and safety. (C3, C4)
Illustrate solutions for mechanical engineering
problems with appropriate consideration for
culture, society, and environment. (C3, C4)
Propose solutions for complex mechanical
engineering problems that meet specific needs
with appropriate consideration for public health
and safety, culture, society, and environment.
(C5,C6)

Demonstrate knowledge on project management

principles and entrepreneurship skills.

COEB 442:Semester 2, 13/14

d)

Demonstrate knowledge on project management

principles (C2,C3)
Demonstrate knowledge on entrepreneurship
skills (C2,C3)

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