Engineers work within socio-economic and ethical contexts, and many find employment in areas outside the traditional vocation (e.g., management, politics, business, etc.). As a result, economic and geopolitical considerations are at the heart of most engineering activity.
MECH431 (Engineering Economics)
This course provides an overview of the basic financial tools required for decision-making in engineering. cash flow calculations and the time value of money are covered in the first half of the course. We then focus on taxes, inflation, and sensitivity analysis. The rest of the course is devoted to a Guest Lecture Series given by engineers that have made a successful transition into the business world.
After completing the course, the students are expected to
- Use the basic financial tools required for sound decision making in engineering (time value of money, taxes, inflation, etc.),
- Perform discounted cash flow calculations to choose between engineering projects using the relevant mathematical models,
- Asses and quantify the uncertainty and risk associated with engineering projects,
- Develop and present a business plan, and
- Perform basic calculations to rank engineering projects according to their environmental impact (e.g., annual greenhouse gas emissions, criteria pollutant levels, etc).
The course materials are available online at www.vista.ubc.ca