Conference Session

Engineering Economy Division Technical Session 1

Collection

2016 ASEE Annual Conference & Exposition

Authors

K. Jo Min, Iowa State University; John Jackman, Iowa State University; Michelle Zugg, Iowa State University

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy

mode.3 Thisapproach, however, has yet to overcome the following critical shortcomings. 1. The Black-Scholes Formula is based on one discrete up or down movement of an underlying asset in a European call option without dividends (i.e., it can be exercised only at the maturity, implying a single period). This is clearly not the case for numerous engineering projects as there are many decision points before the “maturity” when decisions can be made or real options unfold (e.g., if the electric power price becomes too low, the power plant’s option to contract its operations becomes viable). 2. To mimic the evolution of the underlying asset value, a multi-period binomial lattice

Conference Session

Engineering Economy Division Technical Session 1

Collection

2016 ASEE Annual Conference & Exposition

Authors

Wolter J. Fabrycky P.E., Virginia Tech

Tagged Divisions

Engineering Economy

enthusiastic about the potential forEngineering Economy (EE) when integrated at that level. Specifics will emerge from seven topicswherein Engineering Economy and the system level are shown to interface in a significant way.Specifics about these interfaces are addressed by EE@SL comments provided in each text box.I. Recognizing and Addressing the System LevelThe purpose of this paper may be realized most directly by recognizing the system of interest tobe the world in which we live. We observe the natural, the human-made, and the human-modifiedworlds to be interconnected sectors as illustrated in Figure 1. Of these, it is the human-modifiedworld that should be adopted as the highest-level system of concern. This section is devoted todescribing EE@SL

Conference Session

Engineering Economy Division Technical Session 1

Collection

2016 ASEE Annual Conference & Exposition

Authors

Paul C. Lynch, Penn State University Erie, The Behrend College; Joseph Wilck, United States Air Force Academy; Omar Ashour, Pennsylvania State University Erie, The Behrend College

Tagged Topics

Diversity

Tagged Divisions

Engineering Economy

entrepreneurship, one would have to believe that engineering economy is thatcourse, Figure 1. The literature clearly shows evidence of engineering economy being at thecrossroads of engineering, business, and entrepreneurship. “The importance and relevance ofengineering economic analyses is always emphasized when students discuss their projects withpracticing engineers. Without this interaction students sometimes consider economics to beirrelevant to design – a subject for business students,” noted by Archibald, Reuber, and Allison3.Figure 1: Engineering Economy: The course that is at the crossroads of business, engineering, and entrepreneurship.Engineering education literature has continuously shown that projects with industry can behelpful for

Conference Session

Engineering Economy Division Technical Session 1

Collection

2016 ASEE Annual Conference & Exposition

Authors

Kellie Grasman, Missouri University of Science & Technology; Dan Cernusca, North Dakota State University

Tagged Divisions

Engineering Economy

sections weredelivered in a hybrid/buffet mode, though significant modifications to online content occurredfrom Fall 2013 to Fall 2015. A thorough discussion of the historic course structure, components,and preliminary implementation results may be found in a recent journal paper.5 A summary ofFall 2013 course components is presented here, followed by a description of modificationsimplemented for Fall 2015.Fall 2013 Instructional Design StrategiesThe Fall 2013 course components may be categorized as: 1. Online Resources a. WileyPLUS, the online learning environment associated with Principles of Engineering Economic Analysis 5e by White, Case and Pratt6, consisting of a digital copy of the text as well as ungraded

Conference Session

Engineering Economy Division Technical Session 2

Collection

2016 ASEE Annual Conference & Exposition

Authors

Jerome P. Lavelle, North Carolina State University

Tagged Divisions

Engineering Economy

spirit in mind, it is proposed that perhaps now is the time for ABET to re-vision the content of the data collected and processes used for program evaluation and accreditation.  Confluence of Effects: Three characteristics make this an ideal time for a critical evaluation of ABET program accreditation processes:  (1) Widely accepted and valued: From ABET “… to date, approximately 3,600 programs at over 700 colleges and universities in 29 countries have received ABET accreditation. Approximately 85,000 students graduate from ABET-accredited programs each year, and millions of graduates have received degrees from ABET-accredited programs since 1932.”1 ABET’s value in the marketplace is

Conference Session

Using a Real-Options Analysis Tutorial in Teaching Undergraduate Students

Collection

2016 ASEE Annual Conference & Exposition

Authors

John A. White Jr., University of Arkansas

Tagged Divisions

Engineering Economy

course wasCapital Investment Analysis for Engineering and Management, 3rd edition, by Canada, Sullivan,White, and Kulonda.After teaching AdvEngEcon in 2014, I decided to provide an enhanced treatment of real options in2015. Toward that end, I developed a tutorial, targeting undergraduate students enrolled inAdvEngEcon. The tutorial has been revised numerous times in an attempt to increase its value tostudents taking the course. A copy of the tutorial for the 2016 spring semester is provided in theAppendix.My purposes in preparing this paper are twofold: 1) encourage engineering economy educators toincorporate real-options analysis in their engineering economy courses and 2) share lessons learnedin teaching the subject of real-options analysis to

Conference Session

Engineering Economy Division Technical Session 3

Collection

2016 ASEE Annual Conference & Exposition

Authors

Corey Kiassat, PhD, MBA, PE P.E., Quinnipiac University; Xiaoyue Jiang, Quinnipiac University

Tagged Topics

ASEE Diversity Committee

Tagged Divisions

Engineering Economy

-grid and renewable integration, platform system design and optimization, performance guarantees for service and supply-chain systems, and reliability and maintenance optimization. c American Society for Engineering Education, 2016 Systematic Team Formation Leading to Peer Support and Leadership Skills Development1. IntroductionWithin a typical university environment, there are many courses that are taught in multiple sectionsand are multi-disciplinary. Within such settings, this paper aims to examine the role of teamformation on the following: 1) the learning of students, as measured by end-of-term grades,especially the weaker students; and 2) the quality of team leaders

Conference Session

Engineering Economy Division Technical Session 2

Collection

2016 ASEE Annual Conference & Exposition

Authors

Ted Eschenbach P.E., TGE Consulting; Neal A Lewis, University of Bridgeport

Tagged Divisions

Engineering Economy

examples in each category, as shown in Table 1. Percentagesfor each category are also shown. The TVM categories include examples where how the TVMwas calculated could be determined and that would demonstrate that approach to students. Asdetailed in Table 1, spreadsheets and formulas can be applied to other types of examples wherecalculating the TVM is not the focus. Note that the percentages for each text sum to more than100%, because many examples are solved more than one way. Table 1. Tabulated Factors, Spreadsheets, Formulas, and Words for All Examples Book TVM not TVM Book # Exp. Factors SSht Formulas SSht Formulas Words # Exp. B&T 7th

Conference Session

Engineering Economy Division Technical Session 2

Collection

2016 ASEE Annual Conference & Exposition

Authors

Hector E. Medina, Liberty University; Benjamin T. Scoville, Liberty University

Tagged Divisions

Engineering Economy

, and marine aquaculture. c American Society for Engineering Education, 2016Implementation and Evaluation of Visual Algorithm to Teach Benefit-to-Cost Ratio AnalysisIn the recent past, we developed a novel, visual, simple algorithm to teach incremental benefit-to-cost ratio (BCR) analysis to first- and second-year engineering students. The impetus behindthat endeavor was twofold: (a) BCR analysis is the most used technique for economic analysisand decision making in the public sector, and (b) to accommodate to the visual learning stylethat dominates in the engineering student demographics. In the present follow-up work, we: (1)carried out statistical analysis to assess the reception and

Conference Session

Engineering Economy Division Technical Session 3

Collection

2016 ASEE Annual Conference & Exposition

Authors

Jingjing Tong, Southeast Missouri State University; Heather Nachtmann, University of Arkansas

Tagged Topics

ASEE Diversity Committee

Tagged Divisions

Engineering Economy

utilize engineering economy, decision, and data analysistools on a real world engineering problem related to the maritime transportation system.Case Study IntroductionThe Mississippi River, including its main channels and tributaries, is a vital component ofcommodity transport in the United States. It flows 2,350 miles from Minnesota through thecenter of the United States to the Mississippi River Delta at the Gulf of Mexico[1]. It is estimatedthat approximately 600 million tons of commodities transported via the Mississippi River eachyear, including 125 million tons from the Upper Mississippi River (Minneapolis, Minnesota toCairo, Illinois) and 470 million tons from the Lower Mississippi River (Cairo, Illinois to the Gulfof Mexico)[2]. Multiple

Conference Session

Engineering Economy Division Technical Session 3

Collection

2016 ASEE Annual Conference & Exposition

Authors

Deborah Ann Pedraza, Texas Tech University; Mario G. Beruvides P.E., Texas Tech University

Tagged Topics

ASEE Diversity Committee

Tagged Divisions

Engineering Economy

Latin III grades predicted the college English grades. This same study, further,stated that performance in a college English course may be predicted by using a high schoolEnglish course, any high school secondary language score, general high school grade pointaverage, or the Cooperative English Examination. They also noted that, regarding gender andprediction, vocabulary scores are extremely important in predicting the success of boys inCollege English. However, general information scores are more important for girls in theprediction of success in College English.[46] In Table 1, entitled “Zero-Order Correlation Coefficients Between College English andVarious Measures,” shows that the coefficients of prediction used in the study

Conference Session

Engineering Economy Division Technical Session 2

Collection

2016 ASEE Annual Conference & Exposition

Authors

Paul C. Lynch, Penn State University Erie, The Behrend College; James F. Kimpel, University of Pittsburgh; Karen M. Bursic, University of Pittsburgh

Tagged Divisions

Engineering Economy

needs are met is through the “Race to the Case”competition.The Swanson School of Engineering at Pitt also recognizes the critical need to provide studentswith experienced-based learning opportunities. The instructor for the engineering economycourse (housed in the department of industrial engineering (IE)) has incorporated numerousactive learning pedagogies, including case studies and model-eliciting activities, within thecourse over many years. The instructor saw the “Race to the Case” competition as an additionalopportunity to provide IE students with an opportunity to apply engineering economy and otherindustrial engineering skills to a real world problem.The Race to the Case, represented by Figure 1, is an annual case competition, sponsored

Conference Session

Engineering Economy Division Technical Session 3

Collection

2016 ASEE Annual Conference & Exposition

Authors

Paulina Z. Sidwell, McLennan Community College

Tagged Topics

ASEE Diversity Committee, Diversity

Tagged Divisions

Engineering Economy

—some which required the Engineering Economics course forprogram completion. The Texas Board of Higher Education added Engineering Economics to theLower Division Academic Course Guide Manual (ACGM) during the fall semester of 2011 and,although the course is generally included within the schedule of an undergraduate’s junior year(within a four-year program), our college offers the course during the students’ sophomore year.The course’s learning outcomes were also provided in the ACGM, which are the following: 1. Apply different methods to calculate the time value of money. 2. Construct cash flow diagrams for a given problem. 3. Estimate total revenue, total cost, and break even points. 4. Calculate the uniform series payment