Conference Session

Engineering Economy -- The Introductory Course

Collection

2008 Annual Conference & Exposition

Authors

Christopher Jablonowski, University of Texas at Austin

Tagged Divisions

Engineering Economy

in project economics andengineering statistics.The Base CaseWe first examine a risk-neutral utility maximizing decision-maker with a utility function givenby U *$ X + ? Xu , where u is the unit of utility.b The base case is depicted in Figure 1. The Page 13.1335.2decision-maker faces a choice between investing in a project or doing nothing. If he invests, theunconditional probability of success is estimated to be 0.15 with a payoff of $500. Theunconditional probability of failure is estimated to be 0.85 with payoff of -$100. If he doesnothing, the payoff is $0. The expected utility of node B is computed as follows:EU *B + ? 0.15U *$500

Conference Session

Applications of Engineering Economy

Collection

2008 Annual Conference & Exposition

Authors

John Robertson, Arizona State University; Michael Kozicki, Arizona State University; Slobodan Petrovic, Arizona State University

Tagged Divisions

Engineering Economy

environment Exploit 8 System technology qualified 9 Technology has successful mission operations Figure 1. Technology Readiness Levels The TRI is important because it is accepted for risk identification and analysis. The levels are defined in great detail in the DOD literature but they can also be summarized concisely and usefully as shown in figure 1. The limitation of the TRI is that it was designed to assess components and cannot handle the diversity of concepts and expectations involved in determination of a whole new technology. It was the starting point for the work described in this paper. b. The risk attaching to

Conference Session

Applications of Engineering Economy

Collection

2008 Annual Conference & Exposition

Authors

Benjamin Kelley, Baylor University; Robert Doty, Baylor University; Bill booth, Baylor University; Cynthia Fry, Baylor University

Tagged Divisions

Engineering Economy

$6,000 Year 2 $3,000 $5,000 Year 3 $4,000 $4,000 Year 4 $5,000 $3,000 Year 5 $6,000 $2,000 If the prevailing market interest rate over the coming 5 years is expected to be 3% per year: a. Investment X will be preferred to Investment Y. b. Investment Y will be preferred to Investment X. c. Since the two investments generate the same total cash flows over their lifetimes, and the same market interest rate applies to each investment, an investor would have no reason to prefer one to another. 5. You

Conference Session

Applications of Engineering Economy

Collection

2008 Annual Conference & Exposition

Authors

Donald Merino, Stevens Institute of Technology; Jakob Carnemark, SKANSKA

Tagged Divisions

Engineering Economy

. Benefit Estimation - Capital A - Operating Savings A - Operating Expense - Other Savings 4. Economic Analysis - Establish Economic Criteria (MARR, FoM, Tax Rate, etc.) - Use After Tax Analysis (ATA) Model - Calculate Life Cycle Costs (EUAC) 5. Evaluate Intangibles / Non Economic - Environmental, Aesthetic, Legal, etc. - Set Goals / Criteria 6. Decision Analysis A. Conduct Economic Analysis B. Conduct Sensitivity Analysis

Conference Session

Engineering Economy -- Outside the Introductory Course

Collection

2008 Annual Conference & Exposition

Authors

Peter Boerger, Engineering Economic Associates, LLC

Tagged Divisions

Engineering Economy

Production Functions. Atlantic Highlands,NJ: Humanities Press International, 1987.5) Leontief, Wassily W. The Structure of American Economy, 1919-1939: An Empirical Application ofEquilibrium Analysis. New York: Oxford University Press, 1951. Page 13.503.86) Chenery, Hollis B. "Process and Production Functions from Engineering Data.” Studies in the Structure of theAmerican Economy. Ed. Wassily Leontief. White Plains, NY: International Arts and Sciences Press, 1953.7) Swann, G.M. Peter. Engineering Economics: A Feasibility Study. Report to Department of Trade and Industry:Innovation Economics, Statistics and Evaluation Division. November

Conference Session

Engineering Economy -- Outside the Introductory Course

Collection

2008 Annual Conference & Exposition

Authors

William Peterson, Arizona State University

Tagged Divisions

Engineering Economy

, this author was surprised by the treatment of one engineering economy topic in anarea so essential to the development of the inputs to the economic analysis at the core ofengineering economy. This paper discusses these treatments and their implications for theengineering economy discipline.IntroductionThe intent of this paper is not to point fingers at specific authors for their treatment ofengineering economy topics. The intent is to start a discussion of what the discipline needs to doto encourage better treatment of these topics in order that students have a better appreciation ofthe how to apply engineering economy in the practice of engineering. The idea for this paper hasbeen a long time in bubbling up to the surface. The author has been

Conference Session

Engineering Economy -- The Introductory Course

Collection

2008 Annual Conference & Exposition

Authors

Rajkamal Kesharwani, Virginia Polytechnic Institute and State University; Xiaomeng Chang, Virginia Polytechnic Institute and State University; Janis Terpenny, Virginia Polytechnic Institute and State University; william sullivan, Virginia Polytechnic Institute and State University

Tagged Divisions

Engineering Economy

AC 2008-2956: CONTEXT-BASED PROBLEMS AND EXERCISES FORTEACHING ENGINEERING ECONOMYRajkamal Kesharwani, Virginia Polytechnic Institute and State University Rajkamal Kesharwani is an MS student in the Industrial and Systems Engineering Department at Virginia Tech. His interests include decision making in engineering design and design economics.Xiaomeng Chang, Virginia Polytechnic Institute and State University Xiaomeng Chang is a doctoral student in Industrial and Systems Engineering at Virginia Tech with an expected graduation in May 2008. Her research and teaching interests are primarily focused in the areas of engineering design, integration and knowledge environments.Janis Terpenny, Virginia Polytechnic

Conference Session

Engineering Economy -- The Introductory Course

Collection

2008 Annual Conference & Exposition

Authors

Joseph Hartman, University of Florida

Tagged Divisions

Engineering Economy

AC 2008-267: DOES CLASS SIZE MATTER? REFLECTIONS ON TEACHINGENGINEERING ECONOMY TO SMALL AND LARGE CLASSESJoseph Hartman, University of Florida Joseph Hartman received his PhD in Industrial and Systems Engineering from Georgia Tech in 1996. He has served as Director of the Engineering Economy Division of ASEE and is currently Editor of The Engineering Economist. Page 13.449.1© American Society for Engineering Education, 2008 Does Class Size Matter? Reflections on Teaching Engineering Economy to Small and Large ClassesAbstractHaving recently transitioned from a small, private university

Conference Session

Engineering Economy -- Outside the Introductory Course

Collection

2008 Annual Conference & Exposition

Authors

Neal Lewis, University of Bridgeport; Ted Eschenbach, TGE Consulting

Tagged Divisions

Engineering Economy

in operations research and his doctorate in industrial engineering are from Stanford University. He is the principal of TGE Consulting, an emeritus professor of engineering management at UAA, and the founding editor emeritus of the Engineering Management Journal. He is the author or co-author of engineering economy texts currently published by Oxford University Press. Page 13.1023.1© American Society for Engineering Education, 2008 Real Options in Engineering Economy EducationAbstractThis paper presents the results of a survey of engineering economy educators that service a widevariety of