Department of Management and Humanities

Course Outline

GBB/GCB 3173
Engineering Economics & Entrepreneurship
September 2014

Team-Teaching: Dr. Maran Marimuthu

(Coordinator), Dr. M Yussoff
Ibrahim, Mr. Md Akhir M Sharif,
Dr. Rahmat Shazi & Mr. Abu
Bakar Sedek

Office Phone No.: 05-3687770

Office Location: Room 21-03-18
Email Contact: maran.marimuthu@petronas.com.my

Objectives: 1. Introduction to engineering capital investment alternatives.

2. Provide a working knowledge on making economic comparisons of alternatives
involving future benefits and costs.
3. Understand the impact of taxation, depreciation, capital budgeting, project risk
and uncertainty and economic optimization.

Learning Outcomes: On completion of this subject a student should be able to:

1. Describe the monetary side of engineering, the basic concepts of engineering
economy and its underlying principles.
2. Discuss and apply the various methodology of engineering economy and their
application that will assist in making rational decision or solution to engineering
problems that will be encountered in practice.
3. Discuss and solve problems related to the advanced topics such as interests,
depreciation, depletion, income taxes, effect of inflation, tools for evaluating
alternatives, capital financing, replacement analysis and sensitivity analysis in
project situations involving risk and uncertainty.
Synopsis: This course will cover the fundamental concept of engineering economics and its
principles, methodology and application of the various methods as well as discussions
on issues related to the economics of various engineering projects.

Learning method: Learning independently is essentially important. Students are to focus on the designated
topics in the prescribed textbook and attempt all assigned exercise questions prior to
attending the proceeding lecture sessions. Students are expected to read all the
assigned topics or articles prior lecture sessions in order to actively participate in class
discussion.

Assessment: Coursework:
Test 20%
Assignment1-3 15%
Project 15%
Final Exam: 50%

1
 Department of Management and Humanities
Course Outline

Textbook: Blank L. T., Tarquin A. J. (2012), Engineering Economy, Seventh Edition, McGraw-
Hill, Singapore.
Other References: 1. Sullivan W. G., Wicks E. M., Koelling C. P. (2009), Engineering Economy,
Fourteenth Edition, Prentice Hall International, USA.
1. Thuesen G. J., Fabrycky W. J. (2001), Engineering Economy, Ninth Edition,
Prentice Hall International, USA.
2. Hatten S. T. (1997), Small Business: Entrepreneurship & Beyond, Prentice-
Hall.
3. Zimmer W. T. (1998), Essentials of Entrepreneurship & Small Business
Management Prentice-Hall.

Online sources:

Malaysia:
http://www.nst.com.my/business
http://biz.thestar.com.my/
http://www.theedgedaily.com/

International:
http://online.wsj.com/public/asia
http://www.forbes.com/finance/
http://www.bloomberg.com/index.html?Intro=intro3

Magazines:
The Edge
Malaysian Business

2
 Department of Management and Humanities
Course Outline

Lecture topics:

CHAPTER Topic
1 Foundation of Engineering Economy
2 Factors: How time and Interest Effect Money
3 Combining Factors and Spreadsheet Functions
4 Nominal and Effective Interest Rates
5 Present Worth Analysis
6 Annual Worth Analysis
7 Rate of Return Analysis: One Project
8 Rate of Return Analysis: Multiple Alternatives
9 Benefit/Cause Analysis and Public Sector Economics
10 Project Financing and Non-Economic Attributes
11 Replacement and Retention Decisions
13 Breakeven and Payback Analysis
16 Depreciation Methods
17 After-tax Economic Analysis
18 Sensitivity Analysis
In addition, there will be a 2-hr lecture on Entrepreneurship
by Mr. Abu Bakar Sedek in week 6 at 8.30 pm 10.30 pm,
Date & venue-TBA.