Engineering economics - 2014
| Class date(s): | 08 September 2014 onwards | ||||
| |||||
| |||||
| |||||
| |||||
| |||||
| |||||
| |||||
| |||||
| |||||
| |||||
| |||||
| |||||
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 | |
| Seider, Seader, Lewin and Widagdo | Product and Process Design Principles: Synthesis, Analysis and Design, 3rd Edition | NA | 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 students only; use MacSecure on campus to download the PDF, 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 exceeds 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 continued and finished the capital costing section. |
Video | Audio | ||
| 06 October | 06A |
We will start (and finish) the final short section of the economics topic: sensitivity analysis |
Video | Audio | ||
Some extra slides on economic problems were donated by Dr. Marlin. They are for you to complete in your own time. They are good practice for the midterm.