MASTER SYLLABUS – Spring 2004
Department
and Course No: Technology
Management 612
Title: Economic
and Financial Analysis for Technology Management
Credit: 3
Semester Hours
Location: Gullickson Hall 206A
Days & Times: Wednesdays,
Instructor: Prof.
Bernard Gillespie
Office: Room 205B,
Gullickson Hall
Telephone:
696-6007
E-mail: GILLESPB@MARSHALL.EDU
Office
Hours: By
appointment
Attendance Policy: Attendance
is required. More than two absences –
for any reason – will result in a one grade point reduction for the
course. If you must miss class due to
work, travel, etc., notify the instructor prior to class. An unexcused absence (with no prior
notification) will count as two absences and will result in a grade
reduction. You must be present for
examinations and presentations. MAKE
SURE THESE DATES ARE ON YOUR CALENDAR.
Students are responsible for material covered in class whether they are
present or not.
Grading
Policy: Final
Grade for the course will be calculated as follows:
Case
Studies & Homework 30 %
Mid
Term Exam 30
%
Final
Exam 30
%
Class
Contribution 10
%
Numerical
and letter grades correspond as
follows:
100
£
A £
90 < B £
80 <C £
70 < F
Mid-term and Final Exams:
The mid-term and final exams will be open-book. Any written material (notes, books,
standalone
computers, calculators, etc.) may be used during the examination. No networked
computers will be
allowed. Because the exam will be
open-book, students should anticipate
that it will
require them to demonstrate an understanding and an ability to apply the
materials.
Course
Objectives:
·
To provide the student an understanding of financial
statements, including an understanding of what the various entries in the
statements mean and some of the important assumptions that may affect the
values.
·
To introduce the student to some financial analysis
techniques.
·
To familiarize the student with decision-making based
on financial and economic analysis and some of the pitfalls.
·
To provide a general knowledge of cost control
principles and methods.
·
To assist the student in improving oral and written
communications skills and problem solving abilities.
Course
Outline:
MODULE 1
UNDERSTANDING FINANCIAL STATEMENTS
Financial
Reporting
Financial
Statement Analysis
Module 2 CAPITAL PROJECT EVALUATION
TECHNIQUES
Interest
Formulas and Equivalence
Comparison
of Alternatives and Decision Making
·
Income Tax Considerations
·
Replacement Analysis
·
Inflation Effects
·
Consideration of Risks
·
Economic Analysis in Government
Required
Texts:
Newnan, D.G., Lavelle, J.P.,
(2000). Engineering Economic Analysis. (8th
Ed.).,
Fraser, L.M., Ormiston, A.,
(2001). Understanding Financial Statements. (6th Ed.).
Department and Course No: Technology Management 612
Title: Economic
and Financial Analysis for Technology Management
Credit: 3
Semester Hours
|
Session Date |
Topics
|
Due
by |
|
Session 1 January 14 |
Course
Introduction Financial
Statements ·
Overview ·
The Balance
Sheet |
Read Fraser Chapters 1, 2 Obtain Company Annual Report |
|
Session 2 January 21 |
Financial Statements (cont’d.) ·
Students
discuss Balance Sheets ·
Income
Statement & Statement of Retained Earnings |
Discuss company selected & submit
balance sheet assignment Request WV Prepaid Tuition Plan Read Fraser Chapters 3 |
|
Session 3 January 28 |
Financial Statements (cont’d.) ·
Students
discuss Income Statements ·
Statement of
Cash Flows |
Read Fraser Chapters 4 |
|
Session 4 February 4 |
Financial Statements (cont’d.) ·
Students
discuss Statements of Cash Flow Analyzing
Financial Statements ·
Objectives ·
Sources of Data |
Read Fraser Chapter 5 |
|
Session 5 February 11 |
Analyzing
Financial Statements ·
Objectives ·
Sources of
Data |
|
|
Session 6 February 18 |
In-Class
Mid-term Examination (90 minutes) Economic
Analysis – Introduction The
Decision-Making Process Costs and Cost
Estimating |
Read Newnan Chapters 1-2 |
|
Session 7 February 25 |
Interest
Formulas & Equivalence ·
Computing
Cash Flow ·
Time Value
of Money ·
Simple
Interest ·
Equivalence ·
Single
Payment Compound Interest ·
More
Interest Formulas |
Read Newnan Chapters 3-4 |
|
Session 8 March 3 |
|
• Study WV Prepaid College Plan ·
Explore alternative plans
|
Department and
Course No: Technology Management 612
Title: Economic
and Financial Analysis
Credit: 3
Semester Hours
|
Session Date |
Topics
|
Due
by |
|
Session 9 March 10 |
Comparing
Alternatives & Decision Making ·Present Worth Analysis ·Annual Cash Flow Analysis ·Rate of Return Analysis |
|
|
Marsh 17 |
No class –
Spring Break |
|
|
Session 10 March 24 |
Comparing
Alternatives & Decision Making (continued) |
Read Newnan Chapters 5, 6, 7 Submit Problems 4-74, 4-86 |
|
Session 11 March 31 |
Incremental
Analysis Other
Analysis Techniques ·
Future Worth
Analysis ·
Benefit-Cost
Ratio ·
Payback Period ·
Sensitivity
and Break-even Analysis |
Submit Problems 5-23, 5-58, 6-14, & 6-21 |
|
Session 12 April 7 |
·
Comparing
Alternatives & Decision Making ·
Depreciation |
Read Newnan Chapters 8,9 Submit WV Prepaid Plan Problem and
Problems 7-23 & 7-38 |
|
Session 13 April 14 |
Comparing Alternatives & Decision
Making ·
Income Tax
Considerations ·
Replacement
Analysis |
Read Newnan Chaps. 10 Submit Problems 8-23 & 9-34 |
|
Session 14 April 21 |
Comparing Alternatives & Decision
Making ·
Inflation
and Price Change ·
Estimation
of Future Events |
Read Newnan Chaps. 11, 12 Submit Problem 10-3 |
|
Session 15 April 28 |
Selection of
a Minimum Attractive Rate of Return Rationing
Capital Among Competing Projects |
Read Newnan Chaps. 13, 14 Read Newnan Chaps. 15, 17 Submit
Problems Assigned |
|
Session 16 May 4 |
Final
Examination (2 hours) |
|