Department of Management and Humanities

Course Outline

GBB/GCB 3173
Engineering Economics & Entrepreneurship
September 2014

Team-Teaching: Dr. Maran Marimuthu
(Coordinator), Dr. M Yussoff
Ibrahim, Mr. Md Akhir M Sharif,
Dr. Rahmat Shazi & Mr. Abu
Bakar Sedek

Office Phone No.: 05-3687770
Office Location: Room 21-03-18
Email Contact: maran.marimuthu@petronas.com.my

Objectives: 1. Introduction to engineering capital investment alternatives.
2. Provide a working knowledge on making economic comparisons of alternatives
involving future benefits and costs.
3. Understand the impact of taxation, depreciation, capital budgeting, project risk
and uncertainty and economic optimization.

Learning Outcomes: On completion of this subject a student should be able to:
1. Describe the monetary side of engineering, the basic concepts of engineering
economy and its underlying principles.
2. Discuss and apply the various methodology of engineering economy and their
application that will assist in making rational decision or solution to engineering
problems that will be encountered in practice.
3. Discuss and solve problems related to the advanced topics such as interests,
depreciation, depletion, income taxes, effect of inflation, tools for evaluating
alternatives, capital financing, replacement analysis and sensitivity analysis in
project situations involving risk and uncertainty.
Synopsis: This course will cover the fundamental concept of engineering economics and its
principles, methodology and application of the various methods as well as discussions
on issues related to the economics of various engineering projects.

Learning method: Learning independently is essentially important. Students are to focus on the designated
topics in the prescribed textbook and attempt all assigned exercise questions prior to
attending the proceeding lecture sessions. Students are expected to read all the
assigned topics or articles prior lecture sessions in order to actively participate in class
discussion.

Assessment: Coursework:
Test 20%
Assignment1-3 15%
Project 15%
Final Exam: 50%

1

Prentice Hall International. Fourteenth Edition.com. Department of Management and Humanities Course Outline Textbook: Blank L.com/ International:  http://online. Zimmer W. Hatten S. (2009)... (1997). P. M.com/public/asia  http://www.html?Intro=intro3 Magazines:  The Edge  Malaysian Business 2 .forbes.thestar. Prentice Hall International. Ninth Edition. (1998). Engineering Economy. Singapore.my/  http://www. Fabrycky W. 1.nst. USA.com/finance/  http://www..wsj. 3. T. Essentials of Entrepreneurship & Small Business Management” Prentice-Hall. Other References: 1. G.theedgedaily. J. Thuesen G..com. USA. (2001).com/index. T. “Small Business: Entrepreneurship & Beyond”. 2. Wicks E. Engineering Economy.bloomberg. Tarquin A. T. Koelling C. Seventh Edition. Online sources: Malaysia:  http://www. Sullivan W. Engineering Economy. J. McGraw- Hill. Prentice- Hall. (2012).my/business  http://biz. J.

Date & venue-TBA. Department of Management and Humanities Course Outline Lecture topics: CHAPTER Topic 1 Foundation of Engineering Economy 2 Factors: How time and Interest Effect Money 3 Combining Factors and Spreadsheet Functions 4 Nominal and Effective Interest Rates 5 Present Worth Analysis 6 Annual Worth Analysis 7 Rate of Return Analysis: One Project 8 Rate of Return Analysis: Multiple Alternatives 9 Benefit/Cause Analysis and Public Sector Economics 10 Project Financing and Non-Economic Attributes 11 Replacement and Retention Decisions 13 Breakeven and Payback Analysis 16 Depreciation Methods 17 After-tax Economic Analysis 18 Sensitivity Analysis In addition. there will be a 2-hr lecture on Entrepreneurship by Mr.30 pm. 3 .30 pm – 10. Abu Bakar Sedek in week 6 at 8.