University of Manitoba Summer 2018

ENG 3000 – A02

Course identification
Course name: Engineering Economics
Prerequisites: N/A
Lecture hours: TR 6:00 PM – 8:30 PM, E2-320, EITC

Instructor
Instructor: Mohamed H. Issa, PhD, PEng, LEED Green Associate
Contact information: Office: E3-589, EITC
Phone: (204)474-8786
Email: [email protected]
Office hours: TR 8:30 PM – 10:00 PM. Also by appointment.

Teaching assistants (TAs)

Teaching Assistants: Rhoda Quaigrain, BSc Bezalel Orogun, BSc, MSc
Contact Information: Email: [email protected] Email: [email protected]
Office Hours: T 9:00 AM – 11:00 AM Office Hours: F 3:00 PM – 5:00 PM
E3-386, EITC, Cubicle 23 E3-386, EITC, Cubicle 12

Course description and learning objectives

Course Description: Introduction to engineering economics; Time value of money and cash flow analysis;
Present worth analysis; Annual cash flow analysis; Rate of return analysis; Uncertainty and risk analysis;
Interest, income, depreciation and inflation evaluation; Replacement analysis.

Learning Objectives:
By the end of this course, you should be able to:
1. Apply the concept of time of value of money to engineering projects
2. Conduct a cash flow analysis to determine project costs and benefits
3. Conduct present worth, annual worth, rate of return and incremental analyses to evaluate investment
alternatives
4. Conduct future worth, benefit-cost ratio, payback period and sensitivity analyses to evaluate
investment alternatives
5. Conduct risk analysis to evaluate investment alternatives
6. Use various types of depreciation methods to evaluate the value of assets
7. Conduct replacement analysis to evaluate the use of existing and new equipment
8. Account for inflation and interest when evaluating investment alternatives

Course web site

UM Learn

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Textbook
Optional material:
Newnan, D., Jones, J., Whittaker, J., Eschenbach, T., and Lavelle, J. (2018). Engineering Economic
Analysis (4th Can. ed.). Oxford University Press.

Other reference material:

Riggs, J., Bedworth, D., and Randhawa, S. (1996). Engineering Economics (4th ed.). McGraw Hill.

A copy of both textbooks will be available in the Engineering library on reserve.

Quizzes
 Quizzes are expected to cover material not covered since the last quiz.
 Missed quizzes cannot be made up, no exceptions.
 Only writing instruments, pens, pencils, rulers, erasers, and regular calculators are allowed in the
exam. Graphic calculators as well as personal devices such as IPods, cell phones and laptops
are not allowed. Please make sure to bring to the exam a paper copy of your formula sheet and
compound interest tables posted on UM Learn.

Assignments
 All assignments are due by 6:00 PM on their due date.
 Assignments must be dropped in the assignment drop-off box (labeled ENG 3000, Engineering
Economics, Issa), located in the hallway across from E2-399. Do not hand in assignments to the
course instructor or to the teaching assistants.
 A declaration form must be filled, signed and attached to each assignment.
 Assignments must be typed. Only graphs and calculations are allowed in pen/ pencil.
 Only one side/ page of each paper must be used.
 Late assignments will be accepted up to 3 days following their due date. Late assignments will
receive a mark deduction of 50%, no exceptions. Please drop late assignments in the
assignment drop-off box.
 Assignments must be completed individually: you are required to only consult with the TAs or
course instructor if you need help. All sources of information (paper and/or electronic documents)
used in the assignments must be referenced.

Midterm exam
 The midterm exam is a 75-minute closed-book exam and will take place on Thursday May 31st
between 7:15 PM – 8:30 PM. A regular class will be held prior to the midterm exam from
6:00 PM – 6:45 PM.
 The midterm exam will cover material taught in lectures and included in lecture notes since the
start of the term.
 The midterm exam cannot be made up, no exceptions. Missing the exam for excused
documented medical, compassionate or travel reasons will entail adding the weight of the exam
to the weight of the final exam. Travel should be pre-approved by myself prior to the test.
 Only writing instruments, pens, pencils, rulers, erasers, and regular calculators are allowed in the
exam. Graphic calculators as well as personal devices such as Ipods, cell phones and laptops
are not allowed. Please make sure to bring to the exam a paper copy of your formula sheet and
compound interest tables posted on UM Learn.

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Final exam
 The final exam is a 2-hour closed-book exam. It will take place on Saturday, June 23rd. More
information about the location and timing of the exam will be announced later.
 Final exam will cover material not covered in the midterm exam.
 Only writing instruments, pens, pencils, rulers, erasers, and regular calculators are allowed in the
exam. Graphic calculators as well as personal devices such as Ipods, cell phones and laptops
are not allowed. Please make sure to bring to the exam a paper copy of your formula sheet and
compound interest tables posted on UM Learn.

Assessment method

Component Value (%)

Quizzes (best 4 out of 5) 20
Individual Assignments (6) 10
Midterm Exam 20
Final Exam 50

Assessment scale

Letter Grade Final Grade (%)

A+ 92-100
A 85-91.99
B+ 78-84.99
B 72-77.99
C+ 66-71.99
C 60-65.99
D 50-59.99
F Less than 49.99

Other course policies

 Attendance of lectures is mandatory. An attendance sheet will be circulated at the beginning of
every lecture. To confirm attendance, please sign next to your printed name. Do not write your
name down or initial. Only a signature is accepted as confirmation of attendance.
 Lecture notes will not necessarily cover everything discussed in lectures. Similarly, lectures will
not necessarily cover everything included in the notes. You should take your own notes to avoid
missing any critical information.
 Lectures notes will be posted on UM Learn before lectures.

University policies
 The Faculty of Engineering expects regular attendance of all students at lectures, laboratories,
and tutorials. Attendance will be taken to monitor this information. If the number of unexcused
absences recorded against a student in any one course exceeds 10 percent of the number of
course hours (including mandatory lectures, laboratories, and tutorials), the course instructor may
report the case to the Dean of Engineering and inform the student of potential debarment. If the
student’s attendance or work continues to be unsatisfactory, the instructor has the authority to
initiate procedures to debar the student from attending classes, handing in assignments, and from
final examinations and/or from receiving credit. Such cases shall be reported to the Faculty
Council of Engineering at the first opportunity. Students so debarred will have failed that course

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 and will have to repeat the course in the case that the course is compulsory. (University of
Manitoba General Academic Regulations 7.1 & Faculty of Engineering Academic Regulations
3.2).
 The undergraduate calendar defines plagiarism as taking ideas or words of another person and
passing them off as one’s own. In short, it is stealing something intangible rather than an object. It
will be considered plagiarism and/or cheating if you copy the answers of another student in any
examination or take-home assignment. Plagiarism or any other form of cheating in tests,
examinations or take-home assignments is subject to severe academic penalty (e.g. suspension
or expulsion). A student found guilty of contributing to cheating is also subject to serious
academic penalties.
 All unclaimed assignments become property of the Faculty of Engineering and are subject to
destruction.

Communications
 Some course announcements with be made by email. You are responsible to ensure that you are
officially registered for the course, that you have access to it through UM Learn, that your
university email account sends and receives email messages, and that you regularly check your
inbox and UM Learn for relevant notices and updates.
 All correspondence by email to myself or the TAs must be done using your university email
accounts and not your personal accounts.
 TAs are available to meet during posted office hours. To meet outside office hours, please email
them for an appointment.
 I am available to meet during office hours. To meet outside office hours, please email or call for
an appointment.
 Bezalel will be responsible for the marking of assignments whereas Rhoda will be responsible for
the marking of the quizzes. Questions regarding the marking of assignments and quizzes should
first be directed to the appropriate TA. If an issue is still pending, please arrange to meet with me.
 Email messages will be answered within 24 hours.

Student Accessibility Services

 If you are a student with a disability, please contact SAS for academic accommodation supports
and services such as note-taking, interpreting, assistive technology and exam accommodations.
Students who have, or think they may have, a disability (e.g. mental illness, learning, medical,
hearing, injury-related, visual) are invited to contact SAS to arrange a confidential consultation.
Student Accessibility Services http://umanitoba.ca/student/saa/accessibility/

520 University Centre

(204) 474 7423
Email: [email protected]

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Detailed course content*

Week Day Date Subject Assignments/ Quizzes

1 T May 8th Making Economic Decisions
R 10 Engineering Costs
2 T 15 Interest Assignment #1 due
R 17 Present Worth Analysis Quiz #1
3 T 22 Annual Cash Flow Analysis Assignment #2 due
R 24 Rate of Return Analysis Quiz #2
4 T 29 Other Analysis Techniques Assignment #3 due
R 31 Midterm Exam**
5 T June 5th Other Analysis Techniques Assignment #4 due
R 7 Risk Analysis Quiz #3
6 T 12 Income and Depreciation Assignment #5 due
R 14 Inflation Quiz #4
7 T 19 Replacement Analysis Assignment #6 due
R 21 Evaluating Public Projects Quiz #5
23 Final Exam

*The schedule is tentative and could change therefore at my discretion.

** The midterm exam starts at 7:15 PM. A regular class will be held prior to the midterm exam from 6:00
PM – 6:45 PM.

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Supplemental Course Information for ENG 3000

All engineering courses are expected to contribute, in some way, to the development of one or more of
the 12 graduate attributes that have been identified by the Canadian Engineering Accreditation Board.
The 12 graduate attributes have been defined below for your information.

Graduate Attributes
1. A Knowledge Base for Engineering: Demonstrated competence in university level
mathematics, natural sciences, engineering fundamentals, and specialized engineering
knowledge appropriate to the program.
2. Problem Analysis: An ability to use appropriate knowledge and skills to identify, formulate,
analyze, and solve complex engineering problems in order to reach substantiated
conclusions.
3. Investigation: An ability to conduct investigations of complex problems by methods that
include appropriate experiments, analysis and interpretation of data, and synthesis of
information in order to reach valid conclusions.
4. Design: An ability to design solutions for complex, open-ended engineering problems and to
design systems, components or processes that meet specified needs with appropriate
attention to health and safety risks, applicable standards, and economic, environmental,
cultural and societal considerations.
5. Use of Engineering Tools: An ability to create, select, apply, adapt, and extend appropriate
techniques, resources, and modern engineering tools to a range of engineering activities,
from simple to complex, with an understanding of the associated limitations.
6. Individual and Team Work: An ability to work effectively as a member and leader in teams,
preferably in a multi-disciplinary setting.
7. Communication Skills: An ability to communicate complex engineering concepts within the
profession and with society at large. Such ability includes reading, writing, speaking and
listening, and the ability to comprehend and write effective reports and design documentation,
and to give and effectively respond to clear instructions.
8. Professionalism: An understanding of the roles and responsibilities of the professional
engineer in society, especially the primary role of protection of the public and the public
interest.
9. Impact of Engineering on Society and the Environment: An ability to analyze social and
environmental aspects of engineering activities. Such ability includes an understanding of the
interactions that engineering has with the economic, social, health, safety, legal, and cultural
aspects of society, the uncertainties in the prediction of such interactions; and the concepts of
sustainable design and development and environmental stewardship.
10. Ethics and Equity: An ability to apply professional ethics, accountability, and equity.
11. Economics and Project Management: An ability to appropriately incorporate economics
and business practices including project, risk, and change management into the practice of
engineering and to understand their limitations.
12. Life-long Learning: An ability to identify and address their own educational needs in a
changing world in ways sufficient to maintain their competence and to allow them to
contribute to the advancement of knowledge.

While there are likely some aspects of many of these attributes that can be found in this course, the
attributes being emphasized in this course are:
1) Problem Analysis, 2) Economics and Project Management.