The University of Lahore

Department of Technology

Engineering Economics (2+0)

Course Code TSS 3020
Instructor Muhammad Noman
Email noman321able@gmail.com
Office Location Room# 2,Department of Technology, UOL (Main Campus)

Consulting Hours:
Tuesday 14:00-22:00
Wednesday 14:00-22:00

Class Days/Time/Venue:
Tuesday 20:00-22:00
Thursday 19:00-20:00

GRADING POLICY:

The weights of work assignments are listed as below:

 Homework assignments: 10%

 Announced and surprise Quizzes: 20%
 Midterm Examination: 20%
 A Comprehensive Final Exam: 50%

RULES:

 Attendance Policy
Students missing more than 25% lectures will not be allowed to appear in the final examination.

 Plagiarism Policy
Plagiarism is considered as a serious offense and severe penalty will be applied, if detected.
 The University of Lahore
Department of Technology

Course Title: Engineering Economics Course Code: TSS 3020

Objective of the course:

 To give students a comprehensive understanding of basic Engineering Economic
concepts and Engineering Economic principles.
 To give students a detailed knowledge of Cost concepts and economics of Design
process.
 To give students an in depth knowledge of Money-Time Relationship and basic
Equivalence Concepts.
Course Contents:
 Introduction to Engineering Economy
 Principles of Engineering Economy
 Engineering Economy and Design Process
 Cost estimating approaches
 Basic cost terminologies
 Life cycle cost concepts
 Cost volume and breakeven point relationship
 Return to capital concepts
 Simple and compound interest rates
 The concept of equivalence
 Cash flow diagram and tables
 Interest formulas
 Arithmetic sequence of cash flows
 Geometric sequence of cash flows
 Interest rate that vary with time
 Nominal versus effective interest rates
 Continuous compounding
 Application of Money-Time Relationship
 Determining Minimum Attractive Rate of Return with different methods
Reference Books:
Engineering Economy by
William G. Sullivan, Elin M. Wicks
 Lecture Plan

Weeks Lectures Topics

1st Introduction to Engineering Economy
1st 2nd Principles of Engineering Economy
3rd Principles of Engineering Economy
4th Engineering Economy and Design Process
2nd 5th Engineering Economy and Design Process
6th Cost estimating approaches
7th Basic cost terminologies
3rd 8th Life cycle cost concepts
9th Life cycle cost concepts
10th Cost volume and breakeven point relationship
4th 11th Cost volume and breakeven point relationship
12th Return to capital concepts
13th Return to capital concepts
5th 14th The concept of equivalence
15th The concept of equivalence
16th The concept of equivalence
6th 17th Cash flow diagram and tables
18th Assignment
19th Cash flow diagram and tables
7th 20th Cash flow diagram and tables
21st Revision
22nd Presentations
th
8 23rd QUIZ
24th
25th
9th 26th
MID TERM
27th
 28th Interest formulas
10th 29th Interest formulas
30th Interest formulas
31st Arithmetic sequence of cash flows
11th 32nd Arithmetic sequence of cash flows
33rd Advantages and disadvantages of water wheel.
12th 34th Geometric sequence of cash flows
35th Geometric sequence of cash flows
36th Interest rate that vary with time
37th Interest rate that vary with time
13th 38th Assignment
39th Nominal versus effective interest rates
40th Nominal versus effective interest rates
14th 41st Presentations
42nd Continuous compounding
43rd Continuous compounding
15th 44th Application of Money-Time Relationship
45th Application of Money-Time Relationship
46th Determining Minimum Attractive Rate of Return with
different methods
16th
47th Determining Minimum Attractive Rate of Return with
different methods
48th Quiz