Introduction to Engineering Economy

Engr. Elisa G. Eleazar

School of Chemical, Biological, and Materials Engineering and Sciences

CH040: ENGINEERING ECONOMY 1

 Course Description
Course Code CH040

Course Title Engineering Economy

Course Description This course covers the analysis and evaluation of the economic merits of engineering projects
to ensure the best use of capital.

Prerequisite MATH142

Number of Credits 3 units

Modules CH040M1 Principles of Engineering Economy

CH040M2 Project Evaluation and Comparing Alternatives
CH040M3 Engineering Economic Analyses and Capital Budgeting

CH040: ENGINEERING ECONOMY 2

 Student Outcomes Addressed by the Course
ABET Outcomes 1: An ability to identify, formulate, and solve complex engineering problems by applying
principles of engineering, science, and mathematics

2: An ability to apply engineering design to produce solutions that meet specified needs with
consideration of public health, safety, and welfare, as well as global, cultural, social,
environmental, and economic factors

PTC and CHED Outcomes A: An ability to apply knowledge of mathematics, science and engineering

E: An ability to identify, formulate and solve engineering problems

K: An ability to use the techniques, skills and modern engineering tools necessary for
engineering practice

CH040: ENGINEERING ECONOMY 3

 Course Outcomes
CH040M1: Principles of Engineering Economy
1 Apply the principles of engineering economy to solve problems on time value of money and equivalence

CH040M2: Project Evaluation and Comparing Alternatives

2 Apply the principles of engineering economy to evaluate projects and compare alternatives

CH040M3: Engineering Economic Analyses and Capital Budgeting

3 Perform cost estimation and economic analyses

CH040: ENGINEERING ECONOMY 4

 Course Outline
CH040M1: Principles of Engineering Economy
W1 Introduction to the Course

Engineering Economy Fundamentals

W2 Time Value of Money: Introducing the Factors

W3 Time Value of Money: Using Multiple Factors

W4 Nominal and Effective Interest Rates

Module Exam

CH040: ENGINEERING ECONOMY 5

 Course Outline
CH040M2: Project Evaluation and Comparing Alternatives
W5 Measures of Economic Worth

W6 Measures of Economic Worth

W7 Breakeven Analysis

W8 Replacement Analysis

Module Exam

CH040M3: Engineering Economic Analyses and Capital Budgeting

W9 Depreciation and After-Tax Economic Analysis

W10 Inflation and Cost Estimation

W11 Capital Budgeting

Module Exam

CH040: ENGINEERING ECONOMY 6

 Teaching and Learning Activities (TLAs) and Assessment Tasks (TAs)
• PowerPoint Show Lectures
• Announcements
• Consultation
• Cardinal Edge Course Message
• Cardinal email: egeleazar@mapua.edu.ph
• FB Messenger: elisa eleazar
CH040: ENGINEERING ECONOMY
• Concept Checks (Quizzes)
• Time-bound, force completion enabled
• Worksheets
• Use the attached Word® file as title page
• Submit clean and clear solution to the problems
• Include a cash flow diagram (as needed) and highlight the
final answer (only) by enclosing it within a box
• Submit a pdf copy of your work
• Spreadsheet Exercises
• Submit the required Excel® file
• Use the correct filename format
• Module Exam
7
 Course Evaluation
Module 1 Module Grade Module Grade Average Grade
Concept Checks 20% Average Grade Average Grade 1.00 ≤ MGA ≤ 1.10 1.00

Worksheets 30% Below 70 I 88 – 90 2.00 1.10 < MGA ≤ 1.40 1.25

Spreadsheet Exercises 20% 70 – 74 3.00 91 – 93 1.75 1.40 < MGA ≤ 1.60 1.50

Module Exam 30% 75 – 79 2.75 94 – 95 1.50 1.60 < MGA ≤ 1.85 1.75
80 – 83 2.50 96 – 97 1.25 1.85 < MGA ≤ 2.10 2.00
Module 2
84 – 87 2.25 98 – 100 1.00 2.10 < MGA ≤ 2.40 2.25
Concept Checks 20%
2.40 < MGA ≤ 2.60 2.50
Worksheets 30%
Module Grade Average MGA = 2.60 < MGA ≤ 2.85 2.75
Spreadsheet Exercises 20%
2.85 < MGA ≤ 3.00 3.00
Module Exam 30% M1 Grade + M2 Grade + M3 Grade
3 IP IP
Module 3
5.00 5.00
Concept Checks 20%
Worksheets 30%
Spreadsheet Exercises 20%
Module Exam 30%
CH040: ENGINEERING ECONOMY 8
 Course Evaluation
Additional Notes on Course Evaluation
 A student who fails a module will get a module grade of IP.
 A student with an IP grade in Module 1 or 2 in this course will have the opportunity to convert the IP grade to a
3.00 until the end of the term using the fully online Completion Module (the schedule of which is upon the
discretion of the professor).
 Unremoved IPs in any of the modules by the end of the term will correspond to a course grade of IP.
 Students are given an additional quarter to convert the IP module grade to a 3.00. After this additional quarter,
the student needs to re-enroll the module as a Remedial Module in the following term, if offered.

 A student who incurs a 100% absence (in terms of task submission) in any of the modules will get a grade of 5.00,
regardless of his/her performance in the other modules.
 A student who violates the Policy on Academic Integrity will get a grade of 5.00.

 A student who gets an IP in all the modules will get a course grade of 5.00.

 Only courses can be dropped; not modules. The deadline of dropping courses is the Friday of Week 9.

CH040: ENGINEERING ECONOMY 9

 References
• White, JA, Grasman, KS, Case, KE, Needy, KL, Pratt, DB. Fundamentals of Engineering Economic Analysis, 1st ed. John

Wiley & Sons, Inc., 2014.

• Marnell, Paul. Engineering Economics for the 21st Century. John Wiley & Sons, Inc., 2016.

• Blank, L, Tarquin, A. Engineering Economy, 8th ed. McGraw-Hill Education, 2018.

• Sullivan, WG, Wicks, EM, Koelling, CP. Engineering Economy, 15th ed. Pearson Education Ltd, 2012.

CH040: ENGINEERING ECONOMY 10

 Course Policies
a. Submission of Assessment Tasks. All assessment tasks must be submitted as scheduled, using the designated links.
No late assessment tasks shall be accepted. And no tasks will be entertained through course messaging.

b. Honor Code. The University’s Policy on Academic Integrity shall be in full effect. Any dishonest act shall be
construed as a violation of this policy. The Cardinal Edge test on the Policy on Academic Integrity will serve as a
prerequisite to future submissions. Be sure to accomplish it.

c. Appeal System. Appeals on student assessment must be made by the concerned student within one week after the
return of the assessed student work.

CH040: ENGINEERING ECONOMY 11

 Introduction to Engineering Economy

Engr. Elisa G. Eleazar

School of Chemical, Biological, and Materials Engineering and Sciences

CH040: ENGINEERING ECONOMY 12