CE  450  SECTION 2

ENGINEERING ECONOMY AND LAW

CAGE Department

1999 Fall Semester

 

 

INSTRUCTOR:

Dr. John Hernandez

OFFICE:

EC II, Rm 233

PHONE 524-2980

646-2311(O)

OFFICE HOURS:

On request

e-mail address:

Hernandz@nmsu.edu

FAX:

646-2311

 

CLASS MEETING SCHEDULE AND LOCATION: 1:30 – 2:20 PM  MWF ECII  RM 103

 

 

 

 

CATALOG DESCRIPTION: Discounted cash flows, economics of engineering projects, and contracts and specifications.

 

PREREQUISITES: Senior standing.

 

TEXT: “Contemporary Engineering Economics”,  2nd. edition by Chan S. Park, published by Addison-Wesley, ISBN 0-201-83598-3           

 

COURSE GOALS: To introduce the student to the concept of the time-value of money  and to the effect that interest rates have on the present worth of a future cash flow.  To provide the student will the techniques need to compare the relative economics of alternative engineering projects. To introduce engineering students to the concept of depreciation and its role in economics and in taxation. The last one-third of the couses is designed to familiarize students with various types of contracts, contract bidding, and contract specifications.  Some parts of lectures will concern engineering ethics  

 

 

SUMMARY OF COURSE OBJECTIVES:  At the conclusion of the course the student will be able to:go to work as an entry level engineer and be able to do routine economic analyses of relatively complex systems of cash flow and depreciation on alternative pieces of equipment, manufacturing or construction techniques, or investments. Students completing the course will be knowledgeable about construction contracts and bidding that they are likely to encounter s inspectors and contract managers. Graduates should be ble to under take courses in advanced engineering economics and to pursue a professional career in this field.

 

 

CONTRIBUTION OF COURSE TO MEETING THE PROFESSIONAL COMPONENT:

This course provides the student with the necesary background to preform entry-level professional work in Civil Engineering with an emphysis on project design and selection, and contract management.  The sections on engineering law and ethics will contribute to a sense of professionalism and the need for standards in decision making.

RELATIONSHIP OF COURSE TO PROGRAM OBJECTIVES:

This course satisfies the engineering science components of the civil, geological, and agricultural engineering programs. 

 

GENERAL POLICIES: Students are expected to arrive in class, ready to take a 5 to 10 minute quiz at the start of every class session. No make-ups are allowed for daily quizzes that are missed because of an absence from class unless the instructor is notified prior to class time of your impending absence.  

 

            Students are expected to complete all of the hone-work problems assigned and students will not receive a passing gade in the course unless all home-work problems are submitted for grading prior to the last day of class. Turn home-work in on or before the due date shown in the class schedule.  A specific format must be followed in submitting home-work problems. Start each problen on a separate page. Write on one side of the paper only! Do not fold your home-work papers. Double space any and all text in each home-work problem. Show all units for every numerial value at each step in your calculations! Show all of your work! Always use the following format:

 

FORMAT FOR HOME-WORK PROBLEMS:

 

                GIVEN:  State the information that has been provided. Use tables if the data is extensive.

 

TO FIND: State what information or analysis is sought. Give the units that you expect for the end-results.

                                                                                                           

CASH FLOW DIAGRAM:  Draw a cass flow diagram that shows all income, costs, time payments, depreciation, taxes, and salvage values

 

STATEMENT OF BASIC EQUATIONS: Write down the basic euation to be used in the solution of the problem. Give all units for each element in the equation.

 

SOLUTION:  Show each step. Show all units!

 

ANSWER: ______________________ UNITS! (only to significant digits!)

 

 

GRADING:

 

Home-work (you must submit all problems to obtain a C or better) …..    25 points

Daily Quizzes (no make-up unless instructor is notified before class)..    15 points

Hour Exams ( 2 @ 20 points each) …………………………………………...    40 points

Final exam  (erngineering law and ethics) ………………………………….    20 points

 

 

COURSE TOPICS AND SCHEDULE

No.

Date

Topic and Reading Recommended

ASSIGNMENT

3.3,

1

8/25

Description of the course; definitions; the time value of money

 

2

8/27

to

9/1

Cash flow diagrams; equivalency; Interest equations; Chapter 2, pages 35-63

Problems 2.3, 2.5, 2.7, 2.9, 2.12 due 9/3

-

4

5

9/3

Unequal and equal payment series

 

 

9/6

Labor Day Holiday

 

6

9/8

9/10

Salvage value; deferred payments; Chapter 2, pages 64-75

Problems 2.17,2.19, 2.23, 2.26, 2.29, 2.32 due 9/17

7

8

9/13

to

9/17

linear gradient series;Geometric gradient series; Chapter 2, page 76-100

Problems 2.40, 2.51, 2.56 due 9/22

9

10

11

9/20

To

9/24

Nominl and effective interest rates; cash flow functions; Chapter 3, page 116-140

Problems 3.1, 3.3, 3.8, 3.19, 3.33 due 9/27

12

13

14

9/27

9/29

Variable mortage rate; changing interest rates; add on loans; loan balance; bonds; principal and interest ; Chapter 3 pg 141-165

Problems 3.41, 3.44, 3.46, 3.58, 3.63, 3.65, 3.69 due 10/4

15

16

10/1

Hour Exam I  on Chapter 2

 

17

10/4

To

10/8

Present worth analysis; Chapter 4

Problems 4-1, 4-5, 4-7, 4-25, 4.29, 4-39 due 10/11

18

19

20

10/11

To

10/15

Equal Uniform Annual Payments; Chapter 5, pages 248-290

Problems 5.4, 5.10, 5.15, 5.20, 5.36 due 10/18

21

22

23

10/18

Rate of Return

 

24

10/20

Review ……  Last Day to Drop with a “W”

 

25

10/22

Hour Exam II on Chapters 3,4, and 5

 

26

10/25

Rate of return on investment

Problems 6.5, 6.15,6.21, 6-A4,   6-A4,  6-A8 due 10/29

27

10/27

To

11/1

Depreciation and taxes, Chapter 7 & 8

Problems 7-6, 7.16, 7.18, 7.26, 7.30, 8.7, 8-13 due 11/5

28

29

30

 

 to

 

11/3

 

to

 

11/22

Engineering law, types of business organizations, bidding, types of contracts, types of contract specifications, elements of a contract;  contract disputes

 

38

 

11/24-26

Thanksgiving Holiday

 

39

11/29

12/1

12/3

Liability, legal actions related to accidents, court actions related to contracts, role of engineering evidence

 

40

41

42

12/6

12/10

Professionalism, code of conduct, engineering ethics, case histories

 

44

 

45

12/15

FINAL EXAM on Engineering Law and Chapters 6,  7,and 8

 

 

STUDENTS WITH DISABILITIES

If you have or believe you have a disability, you may wish to self-identify.  You can do so by providing documentation to the Services for Students with Disabilities, SSD, located at Garcia Annex (Phone: 646-6840).  Appropriate accommodations may then be provided for you.

 

If you have a condition which may affect your ability to exit safely from the premises in an emergency or which may cause an emergency during class, you are encouraged to discuss this in confidence with the instructor and/or the director of SSD.  If you have general questions about the Americans with Disabilities Act (ADA), call the ADA coordinator at 646-3333.

 

PREPARATION OF COURSE SCHEDULE: John Hernandez, August 24th, 1999