ISE 307 - Engineering Economic Analysis

Term 173 - Summer 2018


Aiman H. El-Maleh


Office: Building 22, Room 405-7, Phone: 2811

Schedule and Office Hours

Syllabus | Lectures | Course Resources


Catalog Description

Introduction to concepts of economic decision-making from a cash flow view point. It includes present worth analysis, cash flow equivalence, rates of return, replacement analysis, benefit-cost analysis, depreciation and taxes, and projects break-even point, selection, and sensitivity analysis.

Prerequisite: Third Year.



Park, Chan S., Fundamentals of Engineering Economics, 3rdEd., Prentice Hall (2013).


Course Objectives

  • This course is about making decisions. The purpose of this course is to develop tools and properly analyze and solve the economic problems that are commonly faced by engineers.

  • Through using the basic principles, concepts, and methodology of engineering economics also addresses the practical concerns of engineers.

  • To satisfy the very practical needs of the engineer toward making informed financial decisions when acting as a team member or project manager for engineering projects.

  • To incorporate all critical decision-making tools needed for precise presentation of the effect of the time value of money on engineering decision making.

  • The tools include present worth analysis, annual cash flow, rate of return, incremental analysis, future worth analysis, and payback period. The course also covers such topics as depreciation, replacement analysis, inflation, and deflation.


Course Learning Outcomes

  1. Evaluate the economic feasibility of investments related to engineering projects.

  2. Assess the impact of depreciation, taxation and other economic factors on projects' feasibility.

  3. Conduct sensitivity analysis on key compounding parameters.

  4. Develop policies for assets replacement.

  5. Assess alternative financing modes.

  6. Make financially prudent decisions in everyday life (car/home loans or investments).



  Last Updated: Friday August 24, 2018, by Dr. Aiman El-Maleh