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Why ENCE 422

Effective project managers have complete command of their project costs; understand and use several different project performance measurement concepts; and, prepare and utilize various forms of economic analysis. Students will understand these concepts and how to read and analyze financial statements; how to read and prepare project cost reports; how to summarize project data and turn it into management information; how to perform cash flow analysis; how to determine an appropriate discount rate for project analysis; how to analyze project feasibility under uncertainty. Students will be able to apply the concepts and methods to real world problems and project cases.

ProfessorQingbin Cui, PhDQingbin Cui, PhDStats Credits 3 Offered* Fall On-Campus, Spring On-Campus, Summer Online Prequisite Permission


Time value of money and Equivalence

Introduction to the fundamental concepts of engineering economic analysis

Project evaluation

Process, criteria, data requirements, and use of project economic analysis

Selection of discount rate

How to determine appropriate discount rate to reflect the project capital structure

Risk and uncertainty in project evaluation

Incorporation of risk and uncertainty into the project feasibility analysis

Financial statements

How to read and analyze balance sheet, income statement, and cash flow statement

Accounting process

Transfer business operations and transactions into financial statements

Project cash estimation

Depreciation and equipment cost, project overhead charge

Case Study

A comprehensive case study for students to apply the concepts and methods learned to project evaluation

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Offered: Fall On-Campus, Spring On-Campus, Summer Online*
Week 1Time Value of MoneyWeek 2Interest FormulasWeek 3Present Worth AnalysisWeek 4AW and Other Analysis TechniquesWeek 5Rate of Return AnalysisWeek 6MARR and UncertaintyWeek 7Problems and ReviewWeek 8Mid Term ExamWeek 9Estimating costs and benefitsWeek 10Accounting SystemWeek 11Accounting ProcessWeek 12Financial Statement AnalysisWeek 13Depreciation and TaxWeek 14Analysis of Public Projects: Case StudyWeek 15Project PresentationWeek 16Final Exam

*All course content, including schedule, topics, and books are subject to change semester-to-semester. Course costs are dependent on students' individual situations, including but not limited to, online vs on-campus enrollment, in-state vs out-of-state enrollment, and scholarships. Not all books on this page may be required readings and additional readings may be assigned. Please check the UMD Schedule of Classes for most up to date semester offerings. Instructors give students specific semester details once they are enrolled.