48250 Engineering Economics and Finance

Requisite(s): 48230 Engineering Communication AND 48240 Design Fundamentals
Core
Undergraduate
Subject coordinator: Dr Garry Marks

The objectives of this subject are to provide engineering students with an understanding of and the capacity to deal with workplace concerns and the business side of engineering, and to provide them with an awareness of the language of accounting and engineering economy.

Themes addressed include:

1. The economic context – the creation of wealth, a description of the sectors in the economy, the circulation of money and goods, the system of national accounts, current account deficit, the budget, economics of international trade
2. Engineering economy – discounted cash flow analysis, cash flow diagrams, interest, time value of money, Net Present Value calculations, rates of return, project costing methods (cost estimating), etc.
3. Cost-benefit analysis – cost-benefit analyses taking intangibles into account, types of intangibles and costing methods, and shadow pricing
4. Financial accounting – balance sheets and profit and loss statements, cash flow statements and performance ratios
5. Management accounting – cost categories, break even analysis, contribution margin calculations, budgets
6. Engineering and sustainability – relationships between engineering practice, economics and sustainability.

Assessment: Typically, this subject will be assessed through a combination of class assignments, a major project and a final examination.

Typical availability

Autumn semester, City campus
Spring semester, City campus
Autumn semester, Hong Kong
Spring semester, Hong Kong
Summer session, Hong Kong
Winter session, Hong Kong
Autumn semester, Singapore
Spring semester, Singapore
Summer session, Singapore
Winter session, Singapore