MASTER SYLLABUS – Spring 2003
Department
and Course No: Technology
Management 612
Title: Economic
and Financial Analysis for Technology Management
Credit: 3
Semester Hours
Location: Gullickson Hall 121
Days & Times: Wednesdays,
4:00 PM to 6:20 PM
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 expected. If you must miss class due
to work, travel, etc., notify the instructor prior to class. 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.
January
7, 2003
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.)., Austin, TX:
Engineering Press.
Fraser, L.M., Ormiston, A.,
(2001). Understanding Financial Statements. (6th Ed.). Upper
Saddle River, NJ: Prentice Hall.
Recommended Text:
Newnan, D. G., et. al. (1998). Student’s
Quick Study Guide (7th Ed.), Austin, TX; Engineering Press.
January 7,
2003
Department and Course No: Technology Management 612
Title: Economic
and Financial Analysis for Technology Management
Credit: 3
Semester Hours
|
Session Date |
Topics
|
Readings /Assignments Due
by |
|
Session 1 January 15 |
Course Introduction Financial
Statements ·
Overview ·
The Balance
Sheet |
Read Fraser Chapters 1, 2 Obtain Company Annual Report |
|
Session 2 January 22 |
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 29 |
Financial
Statements (cont’d.) ·
Students
discuss Income Statements ·
Statement of
Cash Flows |
Read Fraser Chapters 4 |
|
Session 4 February 5 |
Financial
Statements (cont’d.) ·
Students
discuss Statements of Cash Flow Analyzing
Financial Statements ·
Objectives ·
Sources of Data |
Read Fraser Chapter 5 |
|
Session 5 February 12 |
Analyzing
Financial Statements ·
Objectives ·
Sources of
Data |
|
|
Session 6 February 19 |
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 26 |
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 5 |
West
Virginia Prepaid College Plans |
• Study WV Prepaid College Plan ·
Explore alternative plans
|
January 7, 2003
Department and
Course No: Technology Management 612
Title: Economic
and Financial Analysis
Credit: 3
Semester Hours
|
Session Date |
Topics
|
Readings /Assignments Due
by |
|
Session 9 March 12 |
Comparing
Alternatives & Decision Making ·Present Worth Analysis ·Annual Cash Flow Analysis ·Rate of Return Analysis |
Read Newnan Chapters 5, 6, 7 Submit Problems 4-74, 4-86 |
|
Marsh 19 |
No class –
Spring Break |
|
|
Session 10 March 26 |
Comparing
Alternatives & Decision Making (continued) |
Submit Problems 5-23, 5-58, 6-14, & 6-21 |
|
Session 11 April 2 |
Incremental
Analysis Other
Analysis Techniques ·
Future Worth
Analysis ·
Benefit-Cost
Ratio ·
Payback
Period ·
Sensitivity
and Break-even Analysis |
Read Newnan Chapters 8,9 Submit WV Prepaid Plan Problem and
Problems 7-23 & 7-38 |
|
Session 12 April 9 |
·
Comparing
Alternatives & Decision Making ·
Depreciation |
Read Newnan Chaps. 10 Submit Problems 8-23 & 9-34 |
|
Session 13 April 16 |
Comparing Alternatives & Decision
Making ·
Income Tax
Considerations ·
Replacement
Analysis |
Read Newnan Chaps. 11, 12 Submit Problem 10-3 |
|
Session 14 April 23 |
Comparing Alternatives & Decision
Making ·
Inflation
and Price Change ·
Estimation
of Future Events |
Read Newnan Chaps. 13, 14 Submit Problems Assigned |
|
Session 15 April 30 |
Selection of
a Minimum Attractive Rate of Return Rationing
Capital Among Competing Projects |
Read Newnan Chaps. 15, 17 |
|
May 7 |
Final
Examination (2 hours) |
|
January 7, 2003