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.

Qingbin Cui, PhD Credits 3 Offered^* Fall On-Campus, Spring On-Campus, Summer Online Prequisite Permission

Topics

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

Student Feedback

“The lecture recordings were really good quality and made it so that I could miss class if I was feeling sick and not worry about missing material and falling behind.” Spring 2022
“The class was very informative and eye-opening for an engineer. There are a lot of things I never considered as an engineer, especially financially. I definitely learned that the financial aspects of being an engineer and working on projects are very important.” Spring 2022
“I appreciate all of the examples and practice problems that were done in class. I learn best with examples and I think this helped a lot. Walking through each question and thoroughly answering each part is really nice. I also liked the recorded lectures which were extremely helpful for reviewing.” Spring 2022
“I most enjoyed the content that was taught in the course. I had not previously been familiar with the concept of engineering economics, but after taking this course I feel that I am much more capable of making strategic engineering decisions on behalf of a company someday.” Spring 2022
“I really liked how the professor tried to incorporate interesting topics and relate to topics we as students will eventually need to face.” Spring 2022
“I liked the attitude of the instructor and how interested he was in students doing things outside of class.” Spring 2022

Book^*

Engineering Economic Analysis,14th edition; Newnan, Eschenbach, & Lavelle; Oxford University Press

Schedule

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.

The GAC and PMI logos are registered marks of the Project Management Institute, Inc. For the full list of PMI’s legal marks, please contact the PMI Legal department.

Web Accessibility

↑ top

Why ENCE 422

Topics

Student Feedback

Book*

Schedule

Book^*