Study-unit ENGINEERING ECONOMY
| Course name | Engineering management |
|---|---|
| Study-unit Code | A002915 |
| Curriculum | Comune a tutti i curricula |
| Lecturer | Alberto Burchi |
| Lecturers |
|
| Hours |
|
| CFU | 6 |
| Course Regulation | Coorte 2022 |
| Supplied | 2023/24 |
| Supplied other course regulation | |
| Learning activities | Caratterizzante |
| Area | Ingegneria gestionale |
| Sector | 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 |