Engineering economics - 2014

From Engineering Economics and Problem Solving: 4N4
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Class date(s): 08 September 2014 onwards
Download video: Link [573M]

Download video: Link [614 M]

Download video: Link [538 M]

Download video: Link [612 M]

Download video: Link [548 M]

Download video: Link [596 M]

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
Peters and Timmerhaus Plant Design and Economics for Chemical Engineers McMaster Google Amazon
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
Woods, Donald Cost Estimation for the Process Industries (McMaster download, 30 Mb) NA NA NA


Readings and resources

  • The slides from the 2013 class are available for those that want to read ahead. I'm modifying the slides somewhat from last year, but feel free to go through the 2013 ones if you want.

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".

  • Take a look at this article. As engineers, you will have to decide on finances for the company are you working for, which is no different to making financial decisions for your own life.
  • And then another article about the rising cost of tuition that is coming along: "Stock up on ramen noodles: cost of university to rise 13 per cent over four years"
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