Summer 2021 - MSE 300 D100

The Business of Engineering I (3)

Class Number: 1449

Delivery Method: Remote


  • Course Times + Location:

    We 3:30 PM – 4:20 PM

    Fr 2:30 PM – 4:20 PM

  • Exam Times + Location:

    Aug 13, 2021
    8:30 AM – 11:30 AM

  • Prerequisites:

    More than 75 units.



Covers topics in decision theory and engineering economics including: gap analysis, multi-attribute utility theory, discounted cash flow fundamentals, inflation, depreciation, tax, financial analysis, uncertaintly and optimization. Students with credit for SEE 300, ENSC 201, ENSC 311, ENSC 410 or ENSC 411 may not take MSE 300 for further credit.


After completing this course, students will:

  • Understand and articulate the fundamentals of multivariate financial decision‐making processe and the corresponding roles of engineering and economic analyses.
  • Have a strong working knowledge of the time value of money and project analysis based on cash flows and financial metrics
  • Have a working knowledge and appreciation of several entrepreneurial and financial concepts including pro forma income statements, valuations and the cash‐to‐cash cycle


  • Assignments 16%
  • Quizzes 14%
  • Midterm 1 12%
  • Midterm 2 12%
  • Final exam 46%


  1. Online problem sets will be posted using Canvas (, with solutions released as the term progresses.
  2. Midterm and final examinations are online. Further details will be provided as the term progresses.
  3. Tutorial sessions will be used as working sessions to reinforce concepts and tools, for general course material review and assistance, and to catch up on lecture materials if needed. Online practice problems will be administered using Canvas (



Syllabus                                                             Topic

Week 1‐2 Course introduction
Engineering Economic Decisions (Chapter 1 in Park et al)
Understanding Financial Statements (Chapter 2 in Park et al)
Week 2‐3 Time Value of Money and Economic Equivalence (Chapter 3 in Park et al)
Week 3‐4 Understanding Money and its Management (Chapter 4 in Park et al)
Week 4‐5 Analysis of Independent Projects (Chapter 5 in Park et al)
Week 5‐6 Comparing Mutually Exclusive Alternatives (Chapter 6 in Park et al)
Week 6‐7 Cost Concepts Relevant to Decision Making (Chapter 7 in Park et al)
Week 7‐8 Project Risk and Uncertainty (Chapter 15 in Park et al)
Week 8‐9 Depreciation (Chapter 8 in Park et al)
Week 9‐10 Corporate Income Taxes (Chapter 9 in Park et al)
Week 10‐11 Developing Project Cash Flows (Chapter 10 in Park et al)
Week 11‐12 Capital‐Budgeting Decisions and Cost of Capital (Chapter 12 in Park et al)
Week 12‐13 Risk‐Adjusted Weighted Average Cost of Capital (auxiliary material)
Understanding the “Cash to Cash” Cycle (auxiliary material)


Title: Contemporary Engineering Economics, A Canadian Perspective, Third Canadian Edition
Author: Chan S. Park, Ming J. Zuo, Ronald Pelot
Publisher: Pearson
Year: 2011  
ISBN: 978‐0‐321‐53876‐5

Registrar Notes:


SFU’s Academic Integrity web site is filled with information on what is meant by academic dishonesty, where you can find resources to help with your studies and the consequences of cheating.  Check out the site for more information and videos that help explain the issues in plain English.

Each student is responsible for his or her conduct as it affects the University community.  Academic dishonesty, in whatever form, is ultimately destructive of the values of the University. Furthermore, it is unfair and discouraging to the majority of students who pursue their studies honestly. Scholarly integrity is required of all members of the University.


Teaching at SFU in summer 2021 will be conducted primarily through remote methods, but we will continue to have in-person experiential activities for a selection of courses.  Such course components will be clearly identified at registration, as will course components that will be “live” (synchronous) vs. at your own pace (asynchronous). Enrollment acknowledges that remote study may entail different modes of learning, interaction with your instructor, and ways of getting feedback on your work than may be the case for in-person classes. To ensure you can access all course materials, we recommend you have access to a computer with a microphone and camera, and the internet. In some cases your instructor may use Zoom or other means requiring a camera and microphone to invigilate exams. If proctoring software will be used, this will be confirmed in the first week of class.

Students with hidden or visible disabilities who believe they may need class or exam accommodations, including in the current context of remote learning, are encouraged to register with the SFU Centre for Accessible Learning ( or 778-782-3112).