MASTER SYLLABUS – Spring 2001
Department
and Course No: Technology
Management 612
Title: Economic
and Financial Analysis for Technology Management
Credit: 3
Semester Hours
Location: via
Compressed Video
So.
Charleston: AC 211
Huntington; Science
Hall Room 166
Days & Times: Thursdays,
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 though not mandatory
except for examinations. 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 20 %
Mid
Term Exam 30
%
Final
Exam 30
%
Class
Contribution 20
%
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
9,2001
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., (1998).
Understanding Financial Statements. (5th Ed.). Upper Saddle
River, NJ: Prentice Hall.
January 9,2001
Department and Course No: Technology Management 612
Title: Economic
and Financial Analysis for Technology Management
Credit: 3
Semester Hours
|
Session Date Location |
Topics
|
Readings /Assignments Due
by |
|
Session 1 January 11 So. Charleston |
Course
Introduction Financial
Statements ·
Overview ·
The Balance
Sheet |
Read Fraser Chapters 1, 2 Obtain Company Annual Report |
|
Session 2 January 18 Huntington |
Financial
Statements (cont’d.) ·
Students
discuss Balance Sheets ·
Income
Statement & Statement of Retained Earnings |
Request WV Prepaid Tuition Plan Read Fraser Chapters 3 |
|
Session 3 January 25 So. Charleston |
Financial
Statements (cont’d.) ·
Students
discuss Income Statements ·
Statement of
Cash Flows |
Read Fraser Chapters 4 |
|
Session 4 February 1 Huntington |
Financial
Statements (cont’d.) ·
Students
discuss Statements of Cash Flow Analyzing
Financial Statements ·
Objectives · Sources of Data |
Read Fraser Chapter 5 |
|
Session 5 February 8 So. Charleston |
Analyzing
Financial Statements (cont’d.) ·
Techniques |
|
|
Session 6 February 15 Huntington |
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 22 So. Charleston |
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 1 Huntington |
Comparing
Alternatives & Decision Making ·Present
Worth Analysis ·Annual
Cash Flow Analysis ·Rate
of Return Analysis |
Read Newnan Chapters 5, 6, 7 Submit Problems Assigned |
January 9,2001
Department and Course No: Technology Management 612
Title: Economic
and Financial Analysis
Credit: 3
Semester Hours
|
Session Date Location |
Topics
|
Readings /Assignments Due
by |
|
Session 9 March 8 So. Charleston |
Comparing Alternatives
& Decision Making (continued) – Problem session |
Submit Problems Assigned |
|
Session 10 March 15 Huntington |
Incremental
Analysis Other
Analysis Techniques ·
Future Worth
Analysis ·
Benefit-Cost
Ratio ·
Payback
Period ·
Sensitivity
and Break-even Analysis |
Read Newnan Chapters 8,9 Submit Problems for Extra Credit |
|
March 22 |
No class –
Spring break |
|
|
Session 11 March 29 So. Charleston |
Comparing
Alternatives & Decision Making ·
Depreciation |
Read Newnan Chaps. 10 Submit Problems Assigned |
|
Session 12 April 5 Huntington |
Comparing Alternatives & Decision
Making ·
Income Tax
Considerations ·
Replacement
Analysis |
Read Newnan Chaps. 11, 12 Submit Problems Assigned |
|
Session 13 April 12 So. Charleston |
Comparing Alternatives & Decision
Making ·
Inflation
and Price Change ·
Estimation
of Future Events |
Read Newnan Chaps. 13, 14 Submit Problems Assigned |
|
Session 14 April 19 Huntington |
Minimum
Attractive Rate of Return |
Read Newnan Chaps. 15 Submit Problems Assigned |
|
Session 15 April 26 So. Charleston |
Economic
Analysis in the Public Sector |
Read Newnan Chaps. 16 Submit Problems Assigned |
|
Session 16 May 3 Huntington |
Final
Examination (2 hours) |
|
January 9,2001