Research Methodolgy & Intellectual Property Rights Series 1
Es5 engineering-economy-and-accounting (1)
1. TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES – Taguig
VISION : Be a center of excellence for technology and engineering education in the country.
MISSION : Provide continues training, development & advancement of highly qualified & competent technical manpow er for national& global socio-economic & industrial grow th, progress & prosperity.
To pursue this mission, TUPT shall;
1. develop globally competitive technicians, engineers, and technology-oriented managers; 3. provide quality extension services for the community and industry;
2. conduct researches to support technology & engineering education & existing technicalknow ledge 4. and implement realistic resource generations
1. Department: ELECTRICALAND ALLIED DEPARTMENT
2. Course Code: ES 5 - BSEE
3. Course Title: ENGINEERING ECONOMY AND ACCOUNTING
4. Course Description:
The course deals with the study of money and equivalence; basic economy study
methods; decisions under certainty; decisions recognizing risk; and decisions admitting certainty.
5. Course Objectives:
At the end of the course, the student shall be able to:
1. Solve problems involving interest and the time value of money;
2. Evaluate project alternatives by applying engineering economic principles and methods and
select the most economically efficient one; and
3. Deal with risk and uncertainty in project outcomes by applying the basic economic decision
making concepts.
6. Unit Credit/Time: 3 UNITS; 14 WEEKS
Lecture: 3.75 HOURS
7. Semester/TermOffered: 1st
YEAR /2nd
TERM
8. Pre-requisite Subject: NONE
9. Clientele: BSEE STUDENTS
10. Requirements:
The requirements of this course and the corresponding inputs
into the final grade are as follows:
a. Quizzes, seatwork/s, homework/s,
Recitation, Attendance -----------------------------------30%
b. Unit Test ----------------------------------------------------40%
c. Term Test ---------------------------------------------------30%
TOTAL -------------------------------------------------------100%
COURSE SYLLABUS
2. 11. Grading System:
Ratings in the quizzes/exercises, homework’s, seatwork’s, unit tests, termtest, and exercises
and other requirements may be in the 0-100% or the 0-10 scale.
In whatever scale used, all final grades are transmitted to the 1-5 scale using the following
conversion:
Raw Grade Final Grade
0 – 100% Grade 0-10 Grade 1-5 Equivalent
98-100 9.8-10 1.00
91-97 9.1-9.7 1.25
85-90 8.5-9.0 1.50
79-84 7.9-8.4 1.75
73-78 7.3-7.8 2.00
67-72 6.7-7.2 2.25
61-66 6.1-6.6 2.50
55-60 5.5-6.0 2.75
50-54 5.0-5.4 3.00
Below 50 Below 5.0 5.00
12. Textbooks:
Abes, Joselito., Cornelio, Ma. Erlinda S., Lupague, Melinda M.,
Magcuyao, Dan Andrew H., Rondaris, Clydelle M., Ventura, Rodel
T.,Engineering Economy, PamantasanngLungsodngMaynila,
Manila, Philippines, 2003
Areola, Mateas., Engineering Economy (Third Edition)
Sta. Maria, Hipolito., Engineering Economy (Student Edition)
13. References:
Blank, Leland T. and Anthony J. Tarquin. Engineering Economy 6th
ed. McGraw-Hill, Inc., 2005.
Newman, Donald G., et al. Essentials of Engineering Economic
Analysis, 2nd
ed. Oxford University Press. 2002
Park, Chan S. Contemporary Engineering Economics, 3rd
ed.
Addison Wesley, 2001
Riggs, James L., et al. Engineering Economics, 4th
ed. McGraw-Hill.
1996.
Sullivan, William G., et al. Engineering Economy, 12th
ed. Prentice
Hall, Inc., 2002.
Thuesen, Gerald J. and W.J. Fabrycky. Engineering Economy, 9th
ed.
Prentice Hall, Inc., 2001
3. 14. Course Outline:
Week
No.
Major Topics/Sub-topics Specific Learning Objectives Activities/
Strategies
Enrichment
Activities
Desired
Values
Materials/
Tools
Equipment
Needed
Evaluation
Scheme/
Tools
1
I. The Economic Environment
a. Engineering Economy
b. History of Economics
c. Consumer and Producer Goods
and Services
d. Law of Supply and Demand
e. Market Structure
Discuss the present economic
environment of the country by sharing of
current events
Define engineering economy and describe
its effect to the lives of the people
Familiarize with the brief history of
economics
Define and compare consumer goods and
producer’s goods
Appreciate the law of supply and demand
and its contribution to the economy
Describe the structure of the market and
the effect of competition to the market
Lecture
Class Discussion
Peer Discussion
News Research Appreciation
Optimism
Involvement
Productivity
Knowledge
Multimedia
Projector
Whiteboard
Handouts
Recitation
Assignment
Quiz
2-4
II. Interests and Money Time
Relationships
a. Simple Interest
b. Ordinary and Exact Simple
Interest
c. Cash Flow Diagram
d. Compound Interest
e. Nominal and Effective Rates of
Interest
f. Equation of Value
g. Continuous Compounding
Interest
h. Discrete Payments
i. Banker’s Discount
Analyze the relationship of time and
money through interests
Discuss and differentiate ordinary and
exact interest and solve problems involved
Illustrate the future worth of money using
the cash flow diagram
Compute for the future worth of money
using compound interest; nominal and
effective rates of interests
Illustrate and compute for the future and
Lecture
Class Discussion
Peer Teaching
Boardwork
Problem Solving
Challenge
Achievement
Confidence
Contribution
Skillfulness
Involvement
Encouragement
Determination
Knowledge
Chalk & Board
Handouts
Recitation
Quiz
4. past worth of money through by
understanding the equation of value
Calculate the future worth of money by
using other interest rates; continuous
compounding, discrete payments, and
banker’s discount
5 UNIT EXAM 1
6
III. Annuity
a. Ordinary Annuity
b. Annuity Due
c. Deferred Annuity
d. Perpetuity
e. Differentiating Ordinary Annuity
and Annuity Due
Define annuity and determine how to
compute annual payments
Describe different types of annuity and
compute money problems that involves
annual payments
Lecture
Class Discussion
Peer Teaching
Boardwork
Problem Solving
Challenge
Achievement
Confidence
Contribution
Skillfulness
Involvement
Encouragement
Determination
Knowledge
Chalk & Board
Handouts
Recitation
Quiz
7
IV. Gradient
a. Uniform Arithmetic Gradient
b. Uniform Geometric Gradient
Define gradient and solve problems
involving the use of gradient formulas
Differentiate UniformArithmetic Gradient
from Uniform Geometric Gradient
Lecture
Class Discussion
Peer Teaching
Boardwork
Problem Solving
Challenge
Achievement
Confidence
Contribution
Skillfulness
Involvement
Encouragement
Determination
Knowledge
Chalk & Board
Handouts
Recitation
Quiz
8-10
V. Depreciation
a. Definition of Terms
b. Straight Line Method
c. Matheson Formula
d. Double Declining Balance
e. Sum of the Year’s Digit Method
f. Sinking Fund Method
g. Hour Output Method
h. Service Output Method
Describe depreciation and its effect to the
value of a certain investment over a
period of time
Discuss different methods of calculating
depreciation and solve depreciation
problems
Lecture
Class Discussion
Peer Teaching
Boardwork
Problem Solving
Challenge
Achievement
Confidence
Skillfulness
Involvement
Encouragement
Determination
Knowledge
Chalk & Board
Handouts
Recitation
Quiz
5. 11 UNIT EXAM 2
12
VI. Break Even Analysis
a. Ways to Lower Break Even
Points
b. Break Even Analysis
c. Key Break Even Factors
d. Calculating Break Even Point
e. Mathematical Explanation
f. Break Even Chart
Describe the concept of breakeven in
determining the economic status of an
investment
Analyze problems involving the concept of
break even
Identify key factors that affects break
even points
Illustrate break even analysis using a
chart
Lecture
Class Discussion
Peer Teaching
Boardwork
Problem Solving
Challenge
Achievement
Confidence
Contribution
Skillfulness
Involvement
Encouragement
Determination
Knowledge
Chalk & Board
Handouts
Recitation
Quiz
13
VII.Comparison of Alternatives
a. Present Worth Method
b. Annual Cost method
c. Rate of Return
d. Capitalized Cost
Identify which best alternative engineering
economic principle will be used in a
business management decision
Lecture
Class Discussion
Peer Teaching
Boardwork
Problem Solving
Challenge
Achievement
Confidence
Contribution
Skillfulness
Involvement
Encouragement
Determination
Knowledge
Chalk & Board
Handouts
Recitation
Quiz
14
FINAL EXAM
Prepared by:
Dr. SELFA J. BRIONES Mr. HECTOR M. TIBO Engr. EDWIN P. ROLDAN
Associate Professor V Instructor 1 Instructor 1
Noted by: Approved by:
Engr. PAL MALETER M. DOMINGO Dr. EDGAR I. GAY-YA
Department Head, Electrical and Allied Assistant Director for Academic Affairs