Unit ENGINEERING ECONOMY
- Course
- Engineering management
- Study-unit Code
- A002915
- Curriculum
- In all curricula
- Teacher
- Alberto Burchi
- Teachers
-
- Alberto Burchi
- Duccio Martelli (Codocenza)
- Hours
- 27 ore - Alberto Burchi
- 27 ore (Codocenza) - Duccio Martelli
- CFU
- 6
- Course Regulation
- Coorte 2022
- Offered
- 2023/24
- Learning activities
- Caratterizzante
- Area
- Ingegneria gestionale
- Academic discipline
- ING-IND/35
- Type of study-unit
- Obbligatorio (Required)
- Type of learning activities
- Attività formativa monodisciplinare
- Language of instruction
- English
- Contents
- Investment analysis; Capital allocation theory; Risk Management.
- Reference texts
- Leland Blank and Anthony Tarquin, Engineering Economy, 9th Edition
ISBN10: 1264158092 | ISBN13: 9781264158096
All the materials available on the Unistudium are part of the course and their study is necessary to pass the final exam. - Educational objectives
- This course introduces the foundations of investment analysis, capital budgeting and risk management. Students will learn how to evaluate investment projects for profitability and risk. Capital allocation methodologies in the presence of limited resources will be analysed. The student will also understand how engineering decisions are influenced by financial analysis when making project plans. Finally, risk management topics useful for the management of adverse events and how these aspects can be included in projects will be covered.
- Prerequisites
- There are no mandatory classes to undertake before this one
- Teaching methods
- Lectures, practical exercises, case studies, and flipped classroom. Class attendance is highly recommended.
- Other information
- More information available on the university web platform Unistudium (look for the course page)
- Learning verification modality
- Written exam covering the topics included in the course program. The exam contains both theoretical and practical questions, requiring computational skills.
Part of the final evaluation can be achieved through group projects (not mandatory) - Extended program
- Topics Covered
Learning Stage 1 - The Fundamentals
1) Foundations of Engineering Economy
2) Factors: How Time and Interest Affect Money
3) Combining Factors and Spreadsheet Functions
4) Nominal and Effective Interest Rates
Learning Stage 2 - Basic Analysis Tools
5) Analysis Using Present Worth and Future Worth Values
6) Annual Worth Analysis
7) Rate of Return Analysis: One Project
8) Rate of Return Analysis: Multiple Alternatives
9) Benefit/Cost Analysis and Public Sector Economics
Learning Stage 2 - Epilogue: Selecting the Basic Analysis Tool
Learning Stage 3 - Making Decisions
10) Project Financing and Noneconomic Attributes
11) Replacement and Retention Decisions
12) Independent Projects with Budget Limitation
13) Breakeven and Payback Analysis
Learning Stage 4 - Rounding Out the Study
14) Effects of Inflation
15) Cost Estimation and Indirect Cost Allocation
16) Depreciation and Depletion Methods
17) After-Tax Economic Analysis
18) Sensitivity Analysis and Staged Decisions
19) Decision Making under Risk - Obiettivi Agenda 2030 per lo sviluppo sostenibile
- SDG 3, 4, and 8