Engineering economics - 2012

Class date(s):	11 September onwards
Download video: Link [113 M]
Download video: Link [109 M]
Download video: Link [122 M]
Download video: Link [110 M]
Download video: Link [118 M]
Download video: Link [113 M]

Class slides

The slides are in tab 3 of the notes.

11 September 2012

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: We cover slides 1 to 24. Slides 19, 20 and 23 are exercises for you to do on your own.
• Audio and video recording of the class
• Self-learning: here's an interesting PDF explaining time value of money and engineering economic concepts
• Enrichment: I mentioned an article about packed distillation towers in class today.

13 September 2012

We continue considering the time value of money (TVM) and do some class exercises.

• Slides: We cover slides 24 to 29. Slides 30 and 31 will feature in the next tutorial.
• Audio and video recording of the class

14 September 2012

• We wrap up the TVM section with one more example and then continue looking at Measures of Profitability: slides 32 to 42
• Audio and video (bad sound!)

18 September 2012

• We continue with various Measures of Profitability: slides 42 to 48
• Audio and video recording of the class

20 September 2012

• We will wrap up Measures of Profitability (slides 49 to 54); including jumping ahead to slides 88 to 90.
• Audio and video recording of the class

21 September 2012

• We will cover Depreciation, slide 63 to 80.
• Here are the websites used in today's class if you want more information on CRA's rules on depreciation (called Capital Cost Allowance, CCA):
  • CCA for individual tax payers
  • Assets that you may depreciate as an individual
  • List of eligible business expenses to reduce tax
  • Basic information on CCA
  • Classes of depreciable property
  • CRA's guidance on calculating CCA
  • The tax form for businesses claiming CCA
  • CRA's guidance on business expense vs capital expense

25 September 2012

• We will cover the effect of taxes on NPV, slides 78 to 83; consider mutually exclusive alternatives, slides 91 to 103.

27 September 2012

• We will cover sensitivity analysis on an NPV, slides 104 to 115

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	Google	Amazon
Fraser et al.	Engineering Economics in Canada (3rd edition, or earlier)	McMaster	Google	Amazon
Fraser et al.	Global Engineering Economics (4th edition, or earlier)	McMaster	Google	Amazon
Park, Zuo and Pelot	Contemporary Engineering Economics, a Canadian perspective (3rd edition, or earlier)	McMaster	Google	NA
Stermole and Stermole	Economic Evaluation and Investment Decision Methods (13th edition, or earlier)	NA	Google	Amazon
Turton et al.	Analysis, Synthesis and Design of Chemical Processes (4th edition, or earlier)	McMaster	Google	Amazon