2020-2021 / GCER0091-1

Engineering Economics (Project Evaluation)

Duration

45h Th

Number of credits

 Executive Master in industrial Management7 crédits 

Lecturer

Language(s) of instruction

English language

Schedule

Schedule online

Units courses prerequisite and corequisite

Prerequisite or corequisite units are presented within each program

Learning unit contents

Main topics:
Introduction to Engineering Economics
Capital Budgeting
Term Project Presentation

1 Introduction to Engineering Economics
The role of Engineering Economics in the decision making process
What is Engineering Economics?
2 Capital Budgeting
Time value of money
+ Definition
+ Interest
+ Methods of calculating interest
+ Economic equivalence
+ Nominal and effective interest rate
Cash flows diagram
Factors of calculating economic equivalence
Homework
Tools for evaluating alternatives
+ Net present value method
+ Net annual value method
+ Internal rate of return method
+ Benefit – cost ratio method
+ Breakeven point analysis
Minimum attractive rate of return
Homework
Investment under risk / uncertainty
Term Project Presentation
3 Students will be asked to prepare their own project. They have to calculate NPV, IRR, BCR and Breakeven point of the project. Every student has to present his/her work in the class and answer questions from other students.

Learning outcomes of the learning unit

  • Introduce the basic concepts of Engineering Economics and Analysis
  • Introduce the fundamental quantitative analytical techniques for evaluating engineering projects
  • Apply techniques for project analysis

Prerequisite knowledge and skills

Planned learning activities and teaching methods

Mode of delivery (face to face, distance learning, hybrid learning)

Organisational adjustments related to the current health context

Recommended or required readings

  • Fundamentals of Engineering Economics – Chan S. Park – Pearson Education, Inc - 2004
  • Basic of Engineering Economy – Leland Blank, P. E. and Anthony Tarquin, P. E – McGraw-Hill - 2008

Assessment methods and criteria

Below you will find information on the evaluation methods planned for in-person and remote exams as well as those planned for hybrid sessions. Depending on how the health crisis evolves, the chosen method will be communicated to you no later than one month before the start of the exam session.

  • Participation: 15%
  • Assignment: 15%
  • Midterm Exam: 15%
  • Term project: 20%
  • Final exam: 35%

Work placement(s)

Organizational remarks

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Contacts

Tran Van Tan, Faculty of Construction Economics and Management,
National University of Civil Engineering, Room 308, A1 Building,
Email: tvtandhxd@gmail.com