48250 Economics and Finance for Engineering Projects
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Subject handbook information prior to 2024 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): ((48110 Engineering Experience 1 OR 48120 Review of Engineering Practice 1 OR 41036 Professional Experience 1)) OR ((87 credit points of completed study in spk(s): C10063 Bachelor of Engineering Bachelor of Arts International Studies OR 87 credit points of completed study in spk(s): C10073 Bachelor of Engineering Bachelor of Science OR 87 credit points of completed study in spk(s): C10075 Bachelor of Engineering Bachelor of Medical Science OR 87 credit points of completed study in spk(s): C10078 Bachelor of Engineering Bachelor of Biotechnology OR 72 credit points of completed study in spk(s): C10067 Bachelor of Engineering OR 87 credit points of completed study in spk(s): C09068 Bachelor of Engineering (Honours) Bachelor of Arts International Studies OR 87 credit points of completed study in spk(s): C09072 Bachelor of Engineering (Honours) Bachelor of Science OR 87 credit points of completed study in spk(s): C09074 Bachelor of Engineering (Honours) Bachelor of Medical Science OR 72 credit points of completed study in spk(s): C09066 Bachelor of Engineering (Honours) OR 72 credit points of completed study in spk(s): C10136 Bachelor of Engineering Science Bachelor of Laws OR 87 credit points of completed study in spk(s): C10339 Bachelor of Engineering Bachelor of Creative Intelligence and Innovation OR 87 credit points of completed study in spk(s): C09076 Bachelor of Engineering (Honours) Bachelor of Creative Intelligence and Innovation OR 72 credit points of completed study in spk(s): C10066 Bachelor of Engineering Science OR 87 credit points of completed study in spk(s): C09123 Bachelor of Engineering (Honours) Bachelor of International Studies OR 87 credit points of completed study in spk(s): C09124 Bachelor of Engineering (Honours) Bachelor of International Studies Diploma Professional Engineering Practice OR 87 credit points of completed study in spk(s): C09067 Bachelor of Engineering (Honours) Diploma Professional Engineering Practice) AND 48230 Introduction to Engineering Projects AND 48240 Design and Innovation Fundamentals)
Description
In this subject, students develop an understanding of finance and economics as they apply to engineering projects. Students increase their ability to accurately cost and manage simple engineering projects by applying economic and financial techniques, such as cash flow, valuation and costing. Students also develop competence in the financial language in the engineering domain by analysing financial reports and assessing the impacts of engineering projects on the financial performance of a business.
Subject learning objectives (SLOs)
Upon successful completion of this subject students should be able to:
| 1. | Analyse the factors that shape the economic environment of an engineering project. (B.1) |
|---|---|
| 2. | Analyse different financial statements within accounting systems of an engineering project. (D.1) |
| 3. | Apply financial analysis techniques and skills such as cash-flow analysis for an engineering project. (D.1) |
| 4. | Evaluate the impacts of financial and economic information on an engineering project to assess project viability. (C.1) |
Course intended learning outcomes (CILOs)
This subject also contributes specifically to the development of the following Course Intended Learning Outcomes (CILOs):
- Socially Responsible: FEIT graduates identify, engage, interpret and analyse stakeholder needs and cultural perspectives, establish priorities and goals, and identify constraints, uncertainties and risks (social, ethical, cultural, legislative, environmental, economics etc.) to define the system requirements. (B.1)
- Design Oriented: FEIT graduates apply problem solving, design and decision-making methodologies to develop components, systems and processes to meet specified requirements. (C.1)
- Technically Proficient: FEIT graduates apply abstraction, mathematics and discipline fundamentals, software, tools and techniques to evaluate, implement and operate systems. (D.1)
Contribution to the development of graduate attributes
Engineers Australia Stage 1 Competencies
This subject contributes to the development of the following Engineers Australia Stage 1 Competencies:
1.5. Knowledge of engineering design practice and contextual factors impacting the engineering discipline.
2.4. Application of systematic approaches to the conduct and management of engineering projects.
Teaching and learning strategies
Students will learn through 12 online lectures (1.5 hours) and 12 face-to-face or online tutorials (1.5 hours, starting from week 1) over 12 weeks. Student learning in the subject is facilitated by a range of activities, as follows:
Lectures
A 1.5-hour weekly session will begin with a formal lecture. The purpose is to develop students' understanding of concepts and methods. Lecture notes and pre-recorded videos for each week will be made available on Canvas. Students are expected to download the notes, watch videos, engage with new content, and use it in the lectures r. The lecture will explain each topic based on the Canvas materials and encourage students to clarify their interpretations through verbal interaction and feedback. During each lecture, the lecture will have further discussions on the topic for each week, which require students' engagement.
Tutorials
Every lecture session will be followed with a tutorial where a set of questions will be provided for students to apply their understanding of concepts and methods for problem-solving.
Tutorials are designed to engage students in learning activities, encourage them to collaborate with other students, learn from each other's ideas through group discussion and peer review, and provide additional feedback on teaching materials that inform the assessment tasks. Tutorial classes will involve a range of planned activities, such as testing students' understanding using
problem-solving and group activities and discussions. Students are required to learn concepts covered in each week's lecture topic before each tutorial.
Weekly tutorial questions (case study questions and discussion questions) and instructions for each class will be made available on
Canvas to enable students to engage with the content, draft their answers, then actively and collaboratively complete the questions in the tutorials. Students will form collaborative groups to discuss their solutions with their peers, complete problem-solving activities, analyse case studies and answer discussion questions in teams.
Project
As part of the tutorial sessions, students are required to research and identify a real-life group project that is relevant to the engineering profession, and to work with their peers to apply concepts and methods for evaluating the project in specific contexts, to analyse trade-offs when making decisions about the project, and to develop constructive critique on the concepts and methods applied on evaluating projects.
Students are encouraged to come up with ideas, present them to their group, and evaluate each other's responses; this regular peer feedback will help students learn. As part of the tutorial, constant feedback will be provided by extending the collaborative class discussion with reflective questions from the tutor.
Content (topics)
Topics addressed in this subject include:
- Economics vs finance
- Basics of accounting and finance
- Financial statements
- Interest and money equivalence
- Money management
- Development of project cash-flows
- Costs concepts
- Market pricing (supply-demand interactions)
- Project viability indicators
- Inflation
- Risks and uncertainty
- Private and social projects
Assessment
Assessment task 1: Project Identification
| Intent: | To establish a report to identify engineering economic problems of a contemporary (ongoing) engineering project from publicly available sources. |
|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 1 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): B.1 |
| Type: | Report |
| Groupwork: | Individual |
| Weight: | 20% |
| Length: | 600 Words |
| Criteria: | Relevance of discussion and evidence |
Assessment task 2: Project Portfolio
| Intent: | To establish a project portfolio to demonstrate knowledge and understanding of subject content and apply it to a selected project from Assessment task 1. |
|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 1, 2, 3 and 4 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): B.1, C.1 and D.1 |
| Type: | Portfolio |
| Groupwork: | Group, individually assessed |
| Weight: | 30% |
| Length: | The submission is an Excel file. The template will be provided on Canvas. |
| Criteria: | Relevance of discussion and evidence |
Assessment task 3: Project Evaluation
| Intent: | To establish a report and apply an understanding of finance and economic concepts to evaluate an engineering project. Students will also develop their abilities to present complex technical analyses in a succinct form for a non-technical audience. |
|---|---|
| Objective(s): | This assessment task addresses the following subject learning objectives (SLOs): 1, 2, 3 and 4 This assessment task contributes to the development of the following Course Intended Learning Outcomes (CILOs): B.1, C.1 and D.1 |
| Type: | Report |
| Groupwork: | Group, group and individually assessed |
| Weight: | 50% |
Minimum requirements
In order to pass the subject, a student must achieve an overall mark of 50% or more.
Required texts
- Park, CS. (2020). Fundamentals of Engineering Economics., Pearson.
- NSW Government. (2023, February). NSW Government Guide to Cost-Benefit Analysis. https://www.treasury.nsw.gov.au/sites/default/files/2023-04/tpg23-08_nsw-government-guide-to-cost-benefit-analysis_202304.pdf
Recommended texts
ALTERNATIVE TEXTS
Newnan, DG, Eschenbach, TG, Lavelle, JP, Lewis, NA (2020), Engineering Economic Analysis, Oxford University Press.
Park, CS (2016) Contemporary Engineering Economics, Pearson.
Sullivan, WG, Wicks, EM and Koelling, CP (2018) Engineering Economy, Pearson.
References
RECOMMENDED ADDITIONAL READINGS
Boardman, AE, Greenberg, DH, Vining, AR and Weimer, DL (2018) Cost-Benefit Analysis: Concepts and Practice, Cambridge University Press.
Mankiw, NG (2021) Principles of Economics, MA Cengage.