Term and Year of offering: Winter 2016
Course Number and Title: MSCI 261 Engineering Economics: Financial Management for Engineers
Instructor’s Name: Bon Koo
Course Description: See description in the Undergraduate Calendar
Course objectives:
The purpose of this course is to provide students with basic economic and financial concepts for decision making of various engineering projects and financial management. The key concepts and topics to be covered include time value of money, rate of return, comparison of investment alternatives, valuation of securities, risk and return, effects of tax system and inflation on decision making, costs of capital, replacement analysis, and capital budgeting. Students will learn how to apply these concepts to real world using various examples and case studies.
Required Readings, Materials and Texts:
Text:
• The main textbook for this course is Engineering Economic Analysis. Third Canadian Edition (2014) by Newnan D.G., J. Whittaker, T.G. Eschenbach and J.P. Lavelle. Oxford University Press. The supplementary textbook is Fundamentals of Corporate Finance, Eighth Edition (2013) by Ross, S., R. Westerfield, B. Jordan and G. Roberts. McGraw-Hill Ryerson.
• You are encouraged to have (either buy or borrow) the textbooks during the term. If you want to buy only one book, you should buy the Newnan et al. I will cover three chapters (7 and 8) from the Ross et al. Any kind of introductory finance textbooks include the relevant topics.
• You have to read the textbook, along with the lecture notes, to fully understand the concepts. You can use an old edition, though the numbering of end-of-chapter problems may be different.
This is a basic course description made available for public reference only. The Undergraduate Calendar is always the official source for all course descriptions. Course Syllabi will be distributed by the instructor in class. For additional details not found here, please contact the listed instructor.