**Instructor:** Roger Bales

Office hours: Tu-Th 3:00-4:00 pm, Kolligan 264

**Textbook:**
Fundamentals of Engineering Economics
by Chan S. Park

**Announcements:**

**Homework:** weekly; late penalty of -10% per day for turning in after 4:00 pm

**grades:**

- tests = 45 points
- in-class assignments = 15 points
- homework = 30 points
- Final project = 10 points
- A: 90-100, B: 80-89, C: 70-79, D: 60-69
- Grade calculator

**Class preparation**

- Please read assignments before class & bring questions about material to class for discussion.
- Some class time will be spent doing problem solving. You will need the reading assignment in order to do these.

**Semester schedule:** (if file fails to appear in browser after left click of mouse, download using right click)

Week |
Date |
Topic(s) |
Reading |
Problems |
Info |

1 | 1/17 | Intro & time value of money | ch 1 | slides | |

1/19 | Simple & compound interest | ch 2.1-2.2 | 2.2, 2.6, 2.11 | no class | |

2 | 1/24 | Series payments | ch 2.3-2.4 | HW 1 || ICA | slides |

1/26 | Series payments | ch 2.4-2.5 | ICA | slides | |

3 | 1/30 | Gradient series; composite case flows | ch 2.6-2.7 | HW 2 || ICA | slides || hw 1 due |

2/2 | Nominal & efective interest rates | ch 3 | ICA | slides | |

4 | 2/7 | Inflation | ch 4.1-4.2 | HW 3 || ICA | slides || hw 2 due, sol |

2/9 | Equivalence under inflation | ch 4.3 | ICA f1 || f2 | slides | |

5 | 2/14 | Equivalence under inflation (cont.) | ch 4.3 | HW 4 || ICA | hw3 due, sol |

2/16 | Present worth analysis | ch 5.1-5.3 | ICA | slides | |

6 | 2/21 | review | ch 1-4 | 5.7, 5.9 | hw 4 due, sol || slides |

2/23 | midterm 1 | ch 1-4 | |||

7 | 2/28 | Present worth analysis (cont.) | ch 5.3-5.4 | ICA || HW5 | slides |

3/2 | Annual equivalent worth | ch 6.1-6.2 | ICA | slides | |

8 | 3/7 | Applying annual worth analysis | ch 6.2-6.3 | ICA || HW6 | hw 5 due, sol || ucpb |

3/9 | Comparing mutually exclusive projects | ch 6.3 | ICA | slides | |

9 | 3/14 | Rate of return | ch 7.1-7.3 | ICA HW7 | hw 6 due, sol || slides |

3/16 | Internal rate of return | ch 7.4 & 7A | ICA | slides | |

10 | 3/21 | Depreciation methods | ch 8.1-8.2 | ICA, HW8 | hw 7 due, sol || slides |

3/23 | Depreciation & taxes | ch 8.3-8.5 | ICA | slides | |

11 | 4/4 | midterm review | ch 5-8 | hw 8 due, key slides | |

4/6 | midterm 2 | ch 5-8 | |||

12 | 4/11 | Project cash flow analysis | ch 9.1-9.6 | HW 9, ICA | slides |

4/13 | Project cash flow analysis | GVC | |||

13 | 4/18 | Project analysis: Panama Canal | HW 10 | hw 9 due, sol, DA | |

4/20 | Project uncertainty | ch 10 | ICA | nrc/slides, JW | |

14 | 4/25 | Replacement decisions | ch 11 | HW 11 | hw 10 due, sol, slides |

4/27 | Benefit-cost analysis | ch 12 | BHW 1 | slides | |

15 | 5/2 | Benefit-cost analysis | ch 12 | BHW 2 | hw 11 due, CITRIS |

5/4 | Review ch 9-12 | bhw 1 due | |||

16 | 5/9 | TBD | Project due 5/11 | bhw 2 due; ucpb | |

5/13 | Final exam, ch 9-12 | final sol | 12:00-3:00 pm |