MASTER SYLLABUS, TM 612/EM 675 – SPRING 2007
Department and Course No: Technology Management 612
(co-listed as Engineering Management 675)
Title: Economic and
Financial Analysis
(Engineering
Economics)
Credit: 3 Semester Hours
Location: S
166, Huntington
AC
211,
Dates & Times: Tuesdays, 4:00 to 6:20 PM
Instructor: Neal Lewis, Ph.D.
Office: 338
Telephone: 304-746-2078
E-mail: lewisn@marshall.edu
Office Hours: Mondays,
1:00 – 3:00 pm
Tuesdays, 10:00 – Noon
Wednesdays, 10:00 – Noon
Feel
free to call at other times.
Course
Objectives:
· To provide the student an understanding of financial statements,
including an understanding of what the various entries in the statement mean
and some of the important assumptions that may affect the values.
· To introduce the student to 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 problem solving abilities.
Exams
The exams will be open book. Any written material (notes, books) may be
used during the examination. Calculators
are required but computers are not permitted.
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.
Homework:
During
the semester, problems will be assigned as homework. Assignments are to be completed and turned in
by the due date shown on the syllabus or assigned by the instructor. Late assignments will be accepted but a 10%
penalty will be deducted for every day late.
If you are going to be absent from any class, you must make arrangements
to obtain and return any homework.
Class Contribution:
Class contribution includes
attendance, preparedness, participation, and contributing meaningful questions,
experiences and examples to enhance the learning opportunities of your
classmates. Be prepared to discuss the
material. I want to hear from you.
Required Texts:
Fraser, L.M. and Ormiston,
A., Understanding Financial Statements, 8th
edition. Prentice
Hall, 2007.
Newnan, D.G.; Eschenbach, T.
G.; Lavelle, J.P. Engineering
Economic Analysis, 9th edition.
Recommended
Supplemental Material:
Merrill Lynch. How to Read a Financial Report. 2000.
(to be supplied).
Sullivan, W.G.; Wicks, E.M.;
and Luxhoj, J. Engineering Economy, 12th
edition. Prentice Hall, 2002.
Eschenbach,
Ted. Engineering Economy, Applying Theory to
Practice, 2nd edition.
Attendance
Policy: Attendance is expected. A portion of the course grade is based on
class contribution, and you cannot contribute if you are not in class. Excessive absences may result in a lower
grade. You must be present for
examinations. 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:
Exam 2 20%
Final Exam 20%
Class Contribution 10%
Numerical and letter grades correspond as follows:
100
£ A £ 90 < B £ 80 <C £ 70 < F
TM 612
Economic & Financial Analysis
EM 675
Engineering Economics
Class
Date |
Topics |
Practice Problems (tentative) |
|
Session 1
Jan. 9 |
Introductions & Course Administrative
Information Financial
Statements: Overview, The Balance Sheet
|
|
Fraser, Chapters 1&2 |
|
Session 2 Jan. 16 |
Financial Statements: Income Statement |
Case 2.1, Lucent Technologies |
Fraser, Chapter 3 Obtain a Company Annual Report |
|
Session 3 Jan. 23 |
Financial Statements: Cash Flows |
|
Fraser Chapter 4 Homework 1 due |
|
Session 4 Jan. 30 |
Financial Statements: Analysis
|
Case 4.1, PetMed Express,
Inc. |
Fraser Chapter 6 |
|
Session 5 Feb. 6 |
Financial Statements: Wrap-up |
|
Homework 2 due |
|
Session 6 Feb. 13 |
Exam 1 |
|
|
|
Session 7 Feb. 20 |
Economic Analysis - Introduction The Decision-Making Process Costs and Cost Estimating |
2-1,2,3,5,6,7,9 |
Newnan
Chapters
1-2 |
Session 8
Feb. 27 |
Interest and Equivalence |
3-3,4,5,6,7,13,19 4-1,3,6,7,20,22,26, 28,30,38 |
Newnan
Chapters
3-4 Hand out Homework 3 |
Class
Date |
Topics |
Practice Problems |
|
Session 9
March 6 |
Present Worth and Annual Cash Flow Analysis |
5-1,3,6,14,16,22,26 6-1,2,4,9,10,32,37,38 |
Newnan
Chapters 5-6 Homework 3 due Hand out Homework 4 |
Session
10
March 13 |
Rate of Return and Analysis Techniques |
7-1,2,28 9-1,2,21,30,31,32, 46,48 |
Newnan Chapters
7, 9 |
March 20
|
Spring Break
No Class |
No class |
|
Session 11
March 27 |
Uncertainty |
10-2,6,8,16,18 |
Newnan Chapter 10 Homework 4 due |
Session 12
April 3 |
Exam 2 |
|
|
Session 13
April 10 |
Depreciation |
11-4a,4d,6a,19 |
Newnan
Chapter
11 |
Session
14
April 17 |
Taxes |
12-17a&b, 18,30,31,34 |
Newnan
Chapter
12 |
Session
15
April 24 |
Inflation Selection of a MARR |
14-7,9,10,11,13 15 – See Handout |
Newnan
Chapters
14-15 Homework 5 due |
Session
16
May 1
|
Final
Exam |
|
|