Simon Fraser University
Engaging the World

Course Outlines

Summer 2024 - MSE 300 D100

The Business of Engineering I (3)

Class Number: 1165

Delivery Method: In Person

Overview

  • Course Times + Location:

    May 6 – Aug 2, 2024: Tue, 10:30–11:20 a.m.
    Surrey

    May 6 – Aug 2, 2024: Thu, 9:30–11:20 a.m.
    Surrey

  • Prerequisites:

    More than 65 units.

Description

CALENDAR DESCRIPTION:

Covers topics in decision theory and engineering economics including: gap analysis, multi-attribute utility theory, discounted cash flow fundamentals, inflation, depreciation, tax, financial analysis, uncertainty and optimization. Students with credit for SEE 300 may not take this course for further credit.

COURSE DETAILS:

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

Grading

  • Assignments 16%
  • Exam 1 28%
  • Exam 2 28%
  • Exam 3 28%

NOTES:

  1. Online assignments (problem sets) will be posted using Canvas (canvas.sfu.ca), with solutions released as the term progresses.
  2. Exams are all in-person. 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. 

Materials

MATERIALS + SUPPLIES:

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)

REQUIRED READING:

Title: Contemporary Engineering Economics, 7th Edition
Author: Chan S. Park
Publisher: Pearson
Year: 2023
ISBN: 9780137633111

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

SFU’s Academic Integrity website http://www.sfu.ca/students/academicintegrity.html 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. http://www.sfu.ca/policies/gazette/student/s10-01.html