CE 231 ENGINEERING ECONOMY 2014-2015 FALL SEMESTER Instructors: Dr. Engin Erant K1-408 Tel: 210 2421 [email protected] Dr. İrem Dikmen Toker K1-410 Tel: 210 2470 [email protected] Dr. M. Talat Birgönül K1-413 Tel: 210 2427 [email protected] Section 2 Thursdays 13:40-16:30 TH7 Section 3 Thursdays 13:40-16:30 DR2 Section 1 Thursdays 13:40-16:30 TH6 Section 5 Tuesdays 13:40-16:30 TH8 Section 4 Tuesdays 13:40-16:30 DR2 Assistants: Gözde Bilgin Hüseyin Erol K1-407 K1-407 Tel: 210 7483 Tel: 210 7483 [email protected] [email protected] Catalogue Description: Introduction to engineering economy, interest and money-time relationships, effective and nominal interest, compound interest, methods of comparison of alternatives by using present worth, annual equivalent and rate of return techniques, depreciation and replacement analysis, economic life problems, cost-benefit analysis, break-even analysis, payback period, effect of inflation. Goals: To discuss the time value of money and methods of comparing alternatives from economic point of view, thus enabling students to make suitable decisions in their professional life when they have to make a decision on an economical basis. Reference Books: Blank, L., Tarquin, A. (2002). Engineering Economy. Fifth Edition, McGraw-Hill, USA. (International Edition) Osman Okka (2006). Mühendislik Ekonomisi. Fourth Edition, Nobel Yayın. Mühendislik Serisi C3. Course Outline: Weeks 1 2 3 4 5 6 7 8 9 10 11 12 Topics Introduction Introduction to Economic Decision Parameters Simple and Compound Interest Effective and Nominal Interest Methods of Comparison of Alternatives Methods of Comparison of Alternatives Replacement, Economic Life Problems Cost-Benefit Analysis Depreciation Payback Period Break-even Analysis Effect of Inflation Grading: First Midterm: 30%, Second Midterm: 30%, Final Exam: 40% Announcements can be followed by visiting www2.ce.metu.edu.tr/~ce231 webpage. NA will be given to the students who miss a Midterm exam without a medical report!