St.

Anthony’s College
San Angel, San Jose Antique

Engineering and Technology Department

Lesson Plan in ESECON

(Engineering Economy)

Week No. 10
Prepared by: ENGR. ESMAR A. PIDO

Offline/Online Instruction

I. COURSE LEARNING OUTCOME

Evaluate project alternatives by applying engineering economic principles and methods

and select the most economically efficient one.

INTENDED LEARNING OUTCOME

Understand the correct use of contemporary methods for determining project profitability.
Solve problems using external rate of return method.
Solve problems using payback period method.

II. CONTENT: Topic/Subject Matter:

3. Basic Economy Study Methods

3.7. The External Rate of Return Method (ERR)

3.8. The Payback Period Method

Reference/Material:

Hipolito B. Sta. Maria, Engineering Economy 3rd Edition

Jaime R. Tiong, Engineering Economy, 2002
Leland Blank and Anthony Tarquin, Engineering Economy 6th Edition, 2005
L.T Blank and A.J Tarquin, Basics of Engineering Economy, 2008
III. ACTIVITIES:

1. Presentation of hand outs with solved problems.

2. Video viewing.

- Basic Economy Study Methods

The External Rate of Return Method (ERR)

The Payback Period Method

3. Evaluation of the example problems.

- Read the hand out and study the example problems. (Week 10)
- Open the video files. (Week 10)

4. Independent Learning/Home Study:

Exam on evaluating projects using payback period method and external rate of
return method.

- Open the file Exam in Engineering Economy (Week 10)

- Solve the following problems.