Fall Semester, 2009
August 25 to December 10, 2009
Class Time Period: TTH 10:50 A.M. – 11:40 A.M.
The course is an introduction to the economic tools necessary for basic business
decision-making and project evaluation.
The determination of prices and costs, the time value of
money, cash flow and present worth analysis, rates of return, the effects of inflation,
depreciation and tax effects, breakeven and benefit-cost analysis.
Instructor: Dr. Paul M. Mason
Telephone: (904) 620-2640/2641
and by appointment
Donald G. Newnan, Jerome P. Lavelle and Ted G. Eschenbach.
Ninth edition or Tenth Edition.
Dallas, Texas: Engineering Press, 2004 or
OBJECTIVES AND APPROACH OF THE COURSE
This course is designed to give the undergraduate engineering student an introduction to the
tools needed for decision-making in a business environment, and for project evaluation.
course begins with a review of the market system and its role in establishing prices and costs.
The time value of money is then covered in detail, as it relates to the cash flows associated with
projects and investments.
Included is the consideration of equivalence concepts, discount rates,
present value, gradients, and internal rate of return. Both breakeven and benefit-cost analysis is
then covered, along with the effects of taxes and depreciation.
Classes are conducted using a combination of lecture and discussion, with ample opportunity for
student reaction and interaction.
Emphasis is placed upon the effective application of financial
III. PREREQUISITES OF THE COURSE
Students are expected to have successfully completed their general education requirements.
IV. CLASSROOM PROTOCOL
Because we must cover a lot of material in a short period of time, it is necessary that we all
cooperate in using the time as efficiently as possible.
Excessive chatter, horseplay, or other
noise making that disturbs other students is not acceptable.
Continued abuse will result in the
offending students being removed from the classroom or from the course.
Beepers and cellular
telephones must be set to vibrate mode, so that they do not disturb the class.
NO FOOD OR
DRINKS ARE PERMITTED IN THE CLASSROOM!