EM531 ENGINEERING ECON.&INVESTMENT MANAGEMENT
| Course Code: | 8660531 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 8.0 |
| Department: | Engineering Management |
| Language of Instruction: | English |
| Level of Study: | Graduate |
| Course Coordinator: | Assist.Prof.Dr BANU LOKMAN |
| Offered Semester: | Fall or Spring Semesters. |
Course Objectives
This course is mainly concerned with economic analysis for engineering and managerial decision making. It consists of techniques for evaluating the worth of prospective projects, investment oppurtunities and design choices. The main topics covered are: Interest and time value of money, economic equivalence, nominal and effective rates, methods for evaluating alternatives, and replacement analysis, before and after tax analysis, index numbers, inflation and escalating costs, sensitivity analysis and how methods of financing affects the analysis. Deterministic capital budgeting models.
Course Content
Interest and time value of money. Economic Equivalence; nominal and effective rates; methods for evaluating alternatives. Replacement analysis; before and after tax analysis. Index numbers; inflation and escalating costs. Sensitivity analysis; methods of financing. Deterministic capital budgeting models.