Skip to main content

Engineering Economy and Decision Making

General

Prefix

EM

Course Number

652

Course Level

Graduate

College/School

College of Science and Engineering

Description

Decision making among mutually exclusive projects, time value of money, internal rate of return analysis, constrained project selection, replacement analysis, depreciation, cost benefit analysis of engineering projects, effect of income taxes on engineering project analysis, decisions under risk and uncertainty, sensitivity analysis.

Credits

Min

3

Max

3

Repeatable

No

Goals and Diversity

MN Goal Course

No

Cultural Diversity

No

Learning Outcomes

Outcome

Evaluate constrained projects and mutually exclusive alternatives.

Outcome

Analyze engineering decision-making options using internal rate of return and incremental analysis methods.

Outcome

Use probability and uncertainty principles to select an appropriate economic project.

Outcome

Assess decisions using sensitivity analysis and replacement analysis methods.

Course Outline

Course Outline

Time value of money. 5% Internal rate of return. 5% Benefit to cost analysis. 10% Mutually exclusive alternatives. 10% Constrained project selection. 10% Replacement analysis. 10% Income taxes and engineering projects. 10% Depreciation. 10% Uncertainty and probability. 15% Sensitivity analysis. 15%

Dependencies

Programs

EM652 is a completion requirement for: