Academic Catalog

IE347 ENGINEERING ECONOMY

Course Code: 5680347
METU Credit (Theoretical-Laboratory hours/week): 3(3-0)
ECTS Credit: 6.0
Department: Industrial Engineering
Language of Instruction: English
Level of Study: Undergraduate
Course Coordinator: Assoc.Prof.Dr. SERHAN DURAN
Offered Semester: Fall Semesters.

Course Content

Economic analysis for engineering and managerial decision making. Techniques for evaluating the worth of prospective projects, investment oppurtunities and design choices. Interest and time value of money, methods for evaluation of alternatives: present worth, annual equivalent worth, rate of return, benefit cost ratio method, and payback method. Replacement analysis, inflation and cost estimation. After tax economic analysis, and methods of financing. Sensitivity and risk analysis.