Difference between revisions of "Engineering economics - 2014"
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* A spreadsheet of [https://docs.google.com/spreadsheet/pub?key=0AtqiArsxgE8YdEZXMnZBdk5sTHY4OG5aSWZlUHlwcmc&output=html capital cost inflation information] specific to the process industries. Print this out for the midterm. | * A spreadsheet of [https://docs.google.com/spreadsheet/pub?key=0AtqiArsxgE8YdEZXMnZBdk5sTHY4OG5aSWZlUHlwcmc&output=html capital cost inflation information] specific to the process industries. Print this out for the midterm. | ||
* A [http://www.che.com/Assets/File/CEPCI_2002.pdf reading on the Chemical Engineering Plant Cost Index] (CEPCI) | * A [http://www.che.com/Assets/File/CEPCI_2002.pdf reading on the Chemical Engineering Plant Cost Index] (CEPCI) | ||
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| 01 October | |||
| 05B | |||
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We started looking at how to use the cost correlations from tables, and adjust them for capacity, materials, operations and inflation. | |||
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[[Media:Economics-4N04-2014-Part-3.pdf |Slides]] | |||
| [http://learnche.mcmaster.ca/media/2014-4N4-Class-05B.mp4 Video] | |||
| [http://learnche.mcmaster.ca/media/2014-4N4-Class-05B.mp3 Audio] | |||
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| 03 October | |||
| 05C | |||
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We continue and mostly will finish the capital costing section. | |||
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[[Media:Economics-4N04-2014-Part-3.pdf |Slides]] | |||
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Revision as of 19:31, 2 October 2014
| Class date(s): | 08 September 2014 onwards | ||||
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Selected references
The following printed materials have influenced the course content. In alphabetical order:
| Author(s) | Title | Library link | Google search for ISBN | Amazon link for ISBN |
|---|---|---|---|---|
| Blank and Tarquin | Engineering Economy (7th edition, or earlier) | McMaster | Amazon | |
| Fraser et al. | Engineering Economics in Canada (3rd edition, or earlier) | McMaster | Amazon | |
| Fraser et al. | Global Engineering Economics (4th edition, or earlier) | McMaster | Amazon | |
| Park, Zuo and Pelot | Contemporary Engineering Economics, a Canadian perspective (3rd edition, or earlier) | McMaster | NA | |
| Peters and Timmerhaus | Plant Design and Economics for Chemical Engineers | McMaster | Amazon | |
| Stermole and Stermole | Economic Evaluation and Investment Decision Methods (13th edition, or earlier) | NA | Amazon | |
| Turton et al. | Analysis, Synthesis and Design of Chemical Processes (4th edition, or earlier) | McMaster | Amazon | |
| Woods, Donald | Cost Estimation for the Process Industries (McMaster download, 30 Mb) | NA | NA | NA |
Class slides, videos, and other resources
| Date | Class number | Topic | Slides for class | Video and audio files | References and Notes | |
|---|---|---|---|---|---|---|
| 08 September | 02A |
In this class we give an overview of the "Engineering Economics" section of the course. We start by introducing the topic of the time-value of money. |
Slides | Video | Audio |
|
| 10 September | 02B |
We looked at the investing point of view last class; in this class we look at the inflationary viewpoint and why money in the future is worth less in today's terms. |
Slides | Video | Audio |
|
| 12 September | 02C |
We looked at an example the considered the time value of money; then discussed various criteria related to assessing an investment. Our focus in the next class is more detail around these "profitability metrics" |
Slides | Video | Audio |
We will be covering not only engineering economics in 4N, but also a bit of "personal economics".
|
| 15 September | 03A |
We looked at what NPV means and how you can explain it to someone else. Details around payback time, and the minimum acceptable rate of return (MARR) were discussed. |
Slides | Video | Audio |
|
| 17 September | 03B |
We saw how the MARR is used to compare an investment, and that DCFRR > MARR for a worthwhile investment. We considered how to select among independent alternative investments. |
Slides | Video | Audio |
|
| 19 September | 03C |
We started to consider the effect of depreciation on cash flows. |
Slides | Video | Audio |
|
| 22 September | 04A |
We see how tax and depreciation combine to affect cash flows and TVM. |
Slides | Video | Audio |
|
| 24 September | 04B |
We will quickly wrap up the prior case study, and the consider the estimation of capital costs. |
Slides | Video | Audio | |
| 26 September | 04C |
Tyler will be teaching the class today around sales and (non-capital) cost estimation. I will be away from campus. |
Audio |
Video recording of this class is not possible. | ||
| 29 September | 05A |
We covered the start of capital cost estimation: looking at capacity factors and inflation factors |
Video | Audio |
| |
| 01 October | 05B |
We started looking at how to use the cost correlations from tables, and adjust them for capacity, materials, operations and inflation. |
Video | Audio | ||
| 03 October | 05C |
We continue and mostly will finish the capital costing section. |
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