ISLAMIC UNIVERSITY OF TECHNOLOGY

MCE 4791 Engineering Economics

Course Outline and Course Plan

Name of the
Teacher Dr. A.R.M. Harunur Rashid Position Assistant Professor
Department EEE Programme B Sc Engineering
Course Code MCE 4791 Course Title Engineering Economics
Academic Year 2016-17 Semester 7 (Winter)
Contact Hours 2 Credit Hours 2
Text books and Text Book: Engineering Authors of the Leland T Bank, Anthony
Reference books Economy(6th edition) books J Tarquin
(if any)
Donald G. Newnan,
Reference Book: Engineering
Jerome P. Lavelle, Ted
Economic Analysis (10th Edition)
Eschenbach
Prerequisites
(If any)
Course
Homepage
Teaching √ Lecture Group discussion Demonstration √ Problem solving
Methods/
Approaches Project √ Others: Term Report

Teaching aids √ Multi-media OHP √ Board and Marker Others

Course Assessment Method

Attendance Mid Semester Semester
Quiz 15% of Total Marks (Best 3 out of 4)
(10%) (25%) Final (50%)
1st Quiz 2nd Quiz 3rd Quiz 4th Quiz Others
Week/Date Week/Date
Week/Date Week/Date Week/Date Week/Date Assignment Homework
With each
Week 3 Week 5 Week 10 Week 13 March May
quiz

Introduction to engineering economic decision, cash flow analysis and basic concepts of
discounting, cost of capital, required ROR equivalence. Business mathematics: Investment
Course Contents
appraisal criteria for economic decisions, present worth, internal rate of return, social
consideration in investment, benefit-cost ratio. Decisions involving depreciation and inflation,
taxes, sensitivity analysis.
1. Learn Different methods for taking decisions at organizational level with economic consideration
2. Learn Different methods for taking financial decisions at personal level
Course
3. Enable to write a business plan with financials to obtain funding from investors and loans from
Objective
banks.

Weekly plan for course content

Weeks Topics Task/Reading

1. Introduction to Engineering Economic decision and various

1 terminologies,
2. Different types of financing modes including Islamic Banking

1
 2
1. Factors and their use;
2. Nominal and Effective Interest rates
1. Continuous Compounding,
3 2. Use of multiple factors

4
1. Break even Analysis
2. Payback period
1. Present-worth
5
2. Capitalised-Cost evaluation

6 1. Equivalent Annual Worth evaluation

7 1. Rate of return computation for a single project

8 1. Rate of return evaluation for Multiple Alternatives

9 1. Determining Minimum Attractive rate of return

10 1. Benefit/Cost ratio evaluation

11 1. Replacement Analysis

12 1. Decisions involving depreciation

13
1. Inflation: Cost estimation
2. Income tax and after tax analysis

14 1. Capital rationing among independent proposals

1. Sensitivity Analysis
15
2. Social consideration in investment

NOTE : University attendance policy for your information: To be eligible for admission to the Semester Final Examination,
students must attend at least 85% of the total number of periods of Lectures/Tutorials/ Laboratories/
Workshops/Field work in every subject offered during the Semester.

Instructor contact details:

Office: Room no 115, Level 1, First Academic Building

E mail: a_rashid@iut-dhaka.edu
Tel: +8802-9291254 ext 3334