This seminar presents the tools of engineering economy for
utilization by engineers, estimators, and management. The areas of
emphasis will be: 1) Cash flows, profits, financial statements, and
the Purcell Diagram; 2) Types of Interest and Dollars Used in Cash
Flow Analysis; 3) The 10 basic expressions used for cash flow
analysis; 4) Cash flows before taxes; 5) Depreciation types and Cash
flows after tax considerations; 6) Project evaluation techniques
such as payback period, present worth, average annual cost, rate of
return, benefit/cost ratios, and positive and negative project
balances and 7) Probability Considerations in project evaluations.
There will be seven problem sessions so participants can practice
the skills learned.
Attendees should bring calculator which can perform exponential
calculations; pencil with eraser, paper, and ruler (6 inch, 12 inch,
or 25 cm).
Skill Level: Intermediate
Who Would Benefit by Attending? Engineers, project managers, accountants,
estimators
Learning Objectives:
The learning objectives are to present tools and techniques that engineers, estimators, and managers may be able to use in their work environment.
The specific objectives are that the participant:
- will understand the concept of cash flows and interest;
- will understand the basic engineering economic expressions;
- will be able to perform a before-tax cash flow and after-tax cash flow analysis; and (4) will be familiar with various project evaluation techniques.
Course Outline:
| Times |
Agenda / Instruction Material Covered |
|
| Day 1 |
|
|
| 08:00 AM - 10:00 AM |
Session I: Basic:- Introduction
- Cash Flows or Profits?
- Cash Flow Diagrams
- Purcell Diagram – Cash Flows and Financial Statements
- Mathematical Fundamentals for Engineering Economics
- Types of Interest
- Types of Dollars
- Problems Session I
|
| 10:00 AM - 10:15 AM |
Morning Break |
| 10:15 AM - 12:00 PM |
Session II: Fundamental Expressions
- Single Cash Flow Expressions
- Present Worth Expression
- Future Worth Expression
- Uniform Series Expressions
- Compound Amount Expression
- Present Worth Uniform Series Expression
- Sinking Fund Expression
- Capital Recovery Expression
- Problem Session II
|
| 12:00 PM - 01:00 PM |
Lunch Break |
| 01:00 PM - 03:00 PM |
Session III: Intermediate Expressions
- Uniform Gradient Expressions
- Present Worth Uniform Gradient Expression
- Uniform Series Uniform Gradient Expression
- Geometric Gradient
- Present Worth Geometric Gradient Expression
- Future Worth Geometric Gradient Expression
- Problem Session III
|
| 03:00 PM - 03:15 PM |
Afternoon Break |
| 03:15 PM - 05:00 PM |
Session IV: Cash Flows, Taxes, and Depreciation – Part I
- Cash Flows Before Taxes
- Depreciation
- Purpose of Depreciation
- Types of Depreciation
- Straight Line Depreciation
- Double Declining Balance Depreciation
- MACRS Depreciation
- Section 179 Depreciation
- Problem Session IV
|
|
| Day 2 |
|
|
| 08:00 AM - 10:00 AM |
Session V: Cash Flows, Taxes and Depreciation – Part 2
Loan Payments, Principle and Interest
Cash Flow After Taxes Analysis
Time Value of Money – Present Worth
– Average Annual Cost
Problem Session V |
| 10:00 AM - 10:15 AM |
Morning Break |
| 10:15 AM - 12:00 PM |
Session VI: Project Evaluation Techniques – Part 1
Payback Period
Return on Investment
Return on Average Investment
Present Worth
Average Annual Cost
Rate of Return
Benefit Cost
Positive & Negative Project Balances |
| 12:00 PM - 01:00 PM |
Lunch Break |
| 01:00 PM - 03:00 PM |
Session VII: Project Evaluation Techiques – Part 2
Completion of Techniques in Part 1
Problem Session VI |
| 03:00 PM - 03:15 PM |
Afternoon Break |
| 03:15 PM - 04:45 PM |
Session VIII: Cash Flows and Probability
Independent Cash Flows
Problem Session VII |
| 04:45 PM - 05:15 PM |
Seminar Evaluation and Wrap |
|
About the Instructor:
Dr. Robert C. Creese CCE, is Professor of Industrial and Management Systems
Engineering at West Virginia University. He has previously taught at the
Pennsylvania State University, Grove City College, and Aalborg University in
Denmark. He is an AACE Fellow, received the Charles V. Keane Service Award by
AACE, and is treasurer of the Northern West Virginia Section of AACE. He has
degrees in Industrial Engineering (BS) and Metallurgy (Ph.D.) from the
Pennsylvania State University and in Industrial Engineering (MS) from the
University of California at Berkeley. He is a member of AACE International,
ASEE, ISPA, SCEA, ASM, AIME, AWS, AFS, and SME.
[REGISTER]
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