Finance for Engineers

Course Code:

ISE 331

Course Period:

Autumn

Course Type:

Core

Credits:

3

Theoric:

2

Practice:

2

Laboratory Hour:

2

ECTS:

5

Prerequisite Courses:

Economics for Engineers

Course Language:

English

Courses given by:

Sina Rastani

Course Objectives:

The purpose of this course is to provide students with knowledge about the basic methods of cost engineering and financial decision making.

Course Content:

Principles of accounting and cost accounting systems, financial tables, various product costing techniques. Cost estimation methods. Evaluation of alternative investment projects, cost-benefit analysis and examples financial decision making problems.

Course Methodology:

1: Lecture, 2: Lab Exercises, 3: Problem Solving

Course Evaluation Methods:

A: Written Exam

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Course Learning Outcomes

Course Learning Outcomes	Detailed Program Outcomes	Teaching Methods	Assessment Methods
Uses main financial tables such as balance sheet, income statement, and cash flow statement and financial ratios to assess the financial health of a company and the impact of engineering projects on the company’s finances.	1a, 6c	1, 2, 3	A
Decides on the suitability of an investment considering the time value of money.	1a, 1b, 2a, 2b, 6c	1, 2, 3	A
Evaluates alternative investment projects considering all relevant factors including time value of money, taxes, inflation, devaluation and depreciation.	1a, 2a, 2b, 6c	1, 2, 3	A
Determines the economic life of capital assets and when these assets should be replaced.	2a, 2b, 6c	1, 3	A
Evaluates public projects using benefit-cost analysis.	2a, 2b, 6c	1, 3	A
Solves financial problems using MS Excel.	2a, 4b, 6c	1, 2, 3	A

Course Flow

COURSE CONTENT
Week	Topics	Study Materials
1	Understanding financial statements (Park, Chapter 2)	Lecture Notes
2	Understanding financial statements (Park, Chapter 2)	Lecture Notes
3	Introduction to financial engineering (Sullivan, Chapter 1)	Textbook & Lecture notes
4	Cost concepts and design economics (Sullivan, Chapter 2)	Textbook & Lecture notes
5	Cost estimation techniques (Sullivan, Chapter 3)	Textbook & Lecture notes
6	Time value of money (Sullivan, Chapter 4)	Textbook & Lecture notes
7	Evaluating a single project (Sullivan, Chapter 5)	Textbook & Lecture notes
8	Midterm Exam 1	Textbook & Lecture notes
9	Comparison and selection among alternatives (Sullivan, Chapter 6)	Textbook & Lecture notes
10	Depreciation and income taxes (Sullivan, Chapter 7)	Textbook & Lecture notes
11	Price changes and exchange rates (Sullivan, Chapter 8)	Textbook & Lecture notes
12	Replacement analysis (Sullivan, Chapter 9)	Textbook & Lecture notes
13	Benefit-cost ratio method (Sullivan, Chapter 10)	Textbook & Lecture notes
14	Midterm Exam 2	Textbook & Lecture notes

Recommended Sources

RECOMMENDED SOURCES
Textbook	Engineering Economy, 16th Ed. (2014), Pearson William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Additional Resources	Contemporary Engineering Economics, 4th Ed. (2007), Pearson Chan S. Park

Material Sharing

MATERIAL SHARING
Documents	Lecture Notes, Study Questions
Study Questions	Study Questions (1-9)
Assignments	Excel assignment for cost estimation
Exams	2 Midterms, 1 Final

Assessment

ASSESSMENT
IN-TERM STUDIES	NUMBER	PERCENTAGE
Midterm 1	2	35
Midterm 2	1	25
Total		60
CONTRIBUTION OF FINAL EXAMINATION TO OVERALL GRADE		40
CONTRIBUTION OF IN-TERM STUDIES TO OVERALL GRADE		60
Total		100

Course’s Contribution to Program

COURSE'S CONTRIBUTION TO PROGRAM OUTCOMES
No	Program Learning Outcomes	check √
1a	Adequate knowledge in mathematics, science and engineering subjects pertaining to the relevant discipline,	√
1b	Ability to use theoretical and applied knowledge in these areas in complex engineering problems.	√
2a	Ability to identify, formulate, and solve complex engineering problems,	√
2b	Ability to select and apply proper analysis and modeling methods for this purpose.	√
3a	Ability to design a complex system, process, device or product under realistic constraints and conditions, in such a way as to meet the desired result,
3b	Ability to apply modern design methods for this purpose.
4a	Ability to devise, select and use modern techniques and tools needed for analyzing and solving complex problems encountered in engineering practice.
4b	Ability to employ information technologies effectively.	√
5a	Ability to design experiments for investigating complex engineering problems or discipline specific research questions,
5b	Ability to conduct experiments, gather data, analyze and interpret results for investigating complex engineering problems or discipline specific research questions.
6a	Ability to work efficiently in intra-disciplinary teams,
6b	Ability to work efficiently in multi-disciplinary teams,
6c	Ability to work individually.	√
7a	Ability to communicate effectively in Turkish, both orally and in writing,
7b	Knowledge of a minimum of one foreign language,
7c	Ability to write effective reports and comprehend written reports, prepare design and production reports,
7d	Ability to make effective presentations,
7e	Ability to give and receive clear and intelligible instructions.
8a	Recognition of the need for lifelong learning, ability to access information, ability to follow developments in science and technology,
8b	Ability to continue to educate him/herself.
9a	Consciousness to behave according to ethical principles and professional and ethical responsibility.
9b	Knowledge on standards used in engineering practice.
10a	Knowledge about business life practices such as project management, risk management, change management.
10b	Awareness in entrepreneurship and innovation.
10c	Knowledge about sustainable development.
11a	Knowledge about the global and social effects of engineering practices on health, environment, and safety,
11b	Knowledge about contemporary issues of the century reflected into the field of engineering.
11c	Awareness of the legal consequences of engineering solutions.

ECTS

ECTS ALLOCATED BASED ON STUDENT WORKLOAD BY THE COURSE DESCRIPTION
Activities	Quantity	Duration (Hour)	Total Workload (Hour)
Course Duration	14	4	56
Hours for off-the-classroom study (Pre-study, practice)	14	3	42
Study questions	9	2	18
Midterms	2	2	4
Homeworks	1	3	3
Final	1	2	2
Total Work Load			125
Total Work Load / 25 (h)			5.00
ECTS Credit of the Course			5

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