New Mexico Institute of Mining and Technology

Department of Management

ES 316: Engineering Economics (3 credits)

Fall 2016
Class Time: Tuesday and Thursday, 9:30 10:45 am.
Classroom: MSEC 195

Instructor: Shaila Parveen

Office: SPEARE 140
E-mail: parveen.nmt@gmail.com
Office Hours: Tuesday and Thursday, 4:00 4:45 pm and by appointment.

Required Textbook: Engineering Economics Analysis, 12th edition by Newnan, Lavelle and Eschenbach.

Course Description: This course serves the purpose of introduction to development of analytical
techniques for evaluating the investment projects. After completing the course, students should be able
to follow a process that will result in an assessment of capital investment projects. Such projects are
usually characterized by uncertainties regarding costs, cash flows and other factors. We will utilize
standard evaluation techniques. Initially this will be done in the context of point estimates for critical
values. Then we will proceed to specific inclusion of risk into the models.

Pre-requisites/Co-requisites: ES 111

Place in Curriculum: Engineering required course.

Course Learning Outcomes: By the end of this course, students will be able to utilize different
mathematical models to assess capital investment projects.

Dates of Exams and Homework Due:

Homework 1 September 1
Homework 2 September 15
Test 1 September 22
Homework 3 October 6
Homework 4 October 20
Test 2 October 27
Homework 5 November 10
Test 3 November 17
Final Exam TBA (Final Exam Week)

Classroom Rules of Conduct:

Cell phones cannot be used as calculators.
Cell phones must be set to vibrate.
Course Contents:
Chapters Topics
1 Making economic decisions
2 Estimating engineering costs and benefits
3 Interest and equivalence
4 Equivalence for cash flows
5 Present worth analysis
6 Annual cash flow analysis
7 Rate of return analysis
8 Choosing the best alternative
9 Other analysis techniques
10 Uncertainty
12 Depreciation

Grading Policies:
The course grade will be computed on the following basis:
Attendance and class participation 5%
Test 1, Test 2 & Test 3 45%
Homework 30%
Final examination 20%
Total 100%
Note: There will be no make-up final examination.
Students who miss any test due to reasonable excuses must contact me beforehand otherwise a
score of 0 will be recorded.
It is your responsibility to submit each homework at the beginning of the class on the due date.
If you cannot attend the class to submit homework in person on the day it is due, it is your
responsibility to submit it to me BEFORE the due date.

Grade Percentage
A 93% to 100%
A- 90% to 92%
B+ 87% to 89%
B 83% to 86%
B- 80% to 82%
C+ 77% to 79%
C 73% to 76%
C- 70% to 72%
D+ 67% to 69%
D 63% to 66%
D- 60% to 62%
F 59% or less

Note: The instructor reserves the right to make modifications to the course outline as deemed
necessary.

NEW MEXICO TECH POLICIES

Emergency Notification
When on campus and in class, your cell phone should be set on vibrate to facilitate receipt of an
emergency notification. Students should register for the Emergency Notification System, if they have
not done so already. The link to the Emergency Notification System is at the top of the NMT website in
red and is here: http://www.nmt.edu/cat-campus-police/4002-emergency-notification-system In
addition, if you must report an emergency situation, please call Campus Police at 575.835.5434.

Counseling and Disability Services:

Reasonable Accommodations
New Mexico Tech is committed to protecting the rights of individuals with disabilities. Qualified
individuals who require reasonable accommodations are invited to make their needs known to the
Office of Counseling and Disability Services (OCDS) as soon as possible. To schedule an appointment,
please call 835-6619.

Counseling Services
New Mexico Tech offers mental health and substance abuse counseling through the Office of Counseling
and Disability Services. The confidential services are provided free of charge by licensed professionals.
To schedule an appointment, please call 835-6619.

Academic Honesty: New Mexico Techs Academic Honesty Policy for undergraduate students is found
starting on page 60 of the NMT Undergraduate Catalog,
http://www.nmt.edu/images/stories/registrar/2014-2015_UNDERGRADUATE_Catalog_FINAL.pdf.
New Mexico Techs Academic Honesty Policy for graduate students is found starting on page 59 of the
NMT Graduate Catalog,
http://www.nmt.edu/images/stories/registrar/2014-2015_GRADUATE_Catalog_FINAL.pdf.
You are responsible for knowing, understanding, and following this policy.

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respectful learning environment. As stated in the New Mexico Tech Guide to Conduct and Citizenship:
New Mexico Techs primary purpose is education, which includes teaching, research, discussion,
learning, and service. An atmosphere of free and open inquiry is essential to the pursuit of education.
Tech seeks to protect academic freedom and build on individual responsibility to create and maintain an
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