COMSATS University Islamabad, Lahore Campus

Block–B, Department of Electrical and Computer Engineering

1.5 KM Defence Road, Off Raiwind Road, Lahore

COURSE DESCRIPTIVE FILE

1 CourseTitle Fundamentals of Engineering

Economics
2 CourseCode ECO290
3 CreditHours 2(2,0)
4 Prerequisites NA
5 Co requisites NA
6 Semester SP 26
7 ResourcePerson Dr. FarihaRehman
8 ContactHours(Theory) 3 hours per week
9 ContactHours(Lab) N/A
10 Office Hours Monday 9:30-11:30
11 Email fariharehman@[Link]
12 Course Catalog Description
The processes of determining exactly which assets to invest in and how much to invest have a
great deal of impact on the organization's 'bottom line' - the profitability. Sound engineering
economic decisions, considering both time and risk are key to the success of any organization.
13 Textbook:
Textbook
1. Engineering Economy 4th edition, by R. Panneerselvam

Reference Books
1. Engineering Economic Analysis by ByJammes L. Riggs, David Bedworth Sabah
u. RandjawaDonald Newnan (Author), Jerome Lavelle
2. Fundamentals of Engineering Economics by Chan S. Park
3. Engineering Economy William G. Sullivan, James A. Bontadelli, [Link].
14 Course Learning Objectives
This course deals with the concepts of economics in engineering perspective. The aim of this
subject is to perform Economic Analysis for decision making with emphasis on rate of return,
net present value, benefit-cost and multi-objective evaluation methods. It also focuses on cost
estimation, alternative analysis and uncertainty analysis. Students will learn about how the
value of money changes over time due to interest and inflation. They will also learn how to
work with cash flows that take place at different times over the life of the project. This
knowledge will then be used with different evaluation techniques to determine whether an

Course Handbook | ECO290 Fundamentals of Engineering Economics 1

investment is worth making.
15 Course Learning Outcomes (CLOs)
After successfully completing this course, the students will be able to:

1. Explain the fundamental principles of engineering economics, including supply-demand

relationships, elasticity, pricing, and capital financing. (C2-PLO-1)
2. Apply economic evaluation techniques such as cost-benefit analysis, rate of return, and
depreciation methods to compare alternative engineering projects. (C3-PLO-2)

16 Marks Breakup
Theory
Quizzes (minimum 4) 15%
Homework assignments (minimum4) 10%

Midtem exam (1 hour and 30 minutes) 25%

Terminal
Final exam
marks (3 hours)
Theory marks * 1 50%
Total (theory) 100%

17 Lecture Plan
Bloom Students
Contact
Week Topic CLO Taxonom Specific Outcome Learning Assessment
Hours
y Hours
Comprehend the elements
of economics and the
Assignment I
interaction between its
1-2 Introduction. CLO1, C2 various components, which 4 4
Quiz I
is followed by the analysis
of the need and scope of
engineering economics.

Analyze the management

Interest Formulas CLO1, of the economic decision
Midterm
and their CLO2 making. Also comprehend
3-4 C2, C3 4 4 Terminal
Application the use of interest formulas
in various investment
alternatives.

Present worth
method of
Analyze that if various
comparison and investment opportunities Assignment II
CLO1, are given to a single task,
5-7 future worth C2, C3 6 6
CLO2 what should be the Midterm
method of appropriate strategies to
select the best alternative.
comparison

8-10 Demand and CLO1, C2, C3 Comprehend the basic 6 6 Assignment

CLO2 concepts of demand and III
supply analysis
supply, which leads to ,
and economic market clearing situation. Quiz II
Also able to provide
efficiency analysis
knowledge about the Midterm

Course Handbook | ECO290 Fundamentals of Engineering Economics 2

 different market clearing
situation. Terminal

 Evaluate the Types of

maintenance
Replacement problem
 Evaluate the Rate of
Replacement and Return Method
Maintenance  Comprehend the
Analysis,Rate of concept of inflation Assignment
Return Method, and analyze its IV
Effects of components which
inflation, CLO1,
12-15 C2, C3 effects the 8 8 Quiz III
Depreciation, CLO2
performance of the Quiz IV
Inventory control economy.
 Analyze the two Terminal.
methods to calculate
depreciation such as
straight line method of
depreciation and
declining balance
method of depriciation

Course Handbook | ECO290 Fundamentals of Engineering Economics 3

18 Course LearningOutcomes(CLOs)and AssessmentPlan
Cognitive Domain Affective Domain Psychomotor Domain
CLO

CLO 1

CLO2

CLO3

CLO4

CLO5

CLO6

CLO7

A1

A2

A3

A4

A5
C1

C2

C3

C4

C5

C6

P1

P2

P3

P4

P5
Activity

Quiz 1 x x

Assignment 1 x x x

Assignment 2 x x

Quiz 2 x x

Midterm x x x x

Assignment 3 x x

Quiz 3 x x
x
Assignment 4 x

Quiz 4 x x

Terminal x x x x

Course Handbook | ECO290 Fundamentals of Engineering Economics 4

Course Handbook | ECO290 Fundamentals of Engineering Economics 5
20 Laboratory Experiences
N/A
21 Laboratory Resources
N/A
22 Computer Resources
N/A
23 Mapping of CLOs to PLOs
PLO1 EngineeringKnowledge:Anabilitytoapplyknowledgeofmathematics,science, engineering
fundamentals andan engineeringspecialization to the solution of complexengineeringproblems.
(Cognitive)
PLO2 ProblemAnalysis:Anabilitytoidentify,formulate,researchliterature,andanalyze complex
engineering problems reaching substantiated conclusions using first
principlesofmathematics,naturalsciencesandengineeringsciences.(Cognitive)
PLO3 Design/Development of Solutions: An abilityto designsolutionsfor complex engineering
problems and designsystems, componentsorprocessesthatmeet
specifiedneedswithappropriateconsideration forpublichealthandsafety,cultural,
societal,andenvironmentalconsiderations.(Cognitive)
PLO4 Investigation: An ability to investigate complex engineeringproblemsin a methodical
wayincluding literaturesurvey,designandconductofexperiments, analysisandinterpretationof
experimentaldata,andsynthesis ofinformationto derivevalidconclusions.(Cognitive,
Psychomotor)
PLO5 ModernToolUsage:Anabilitytocreate,selectandapplyappropriatetechniques,
resources,andmodernengineeringandITtools,includingpredictionandmodeling,to
complexengineeringactivities,withanunderstandingofthelimitations.(Psychomotor)
PLO6 TheEngineerandSociety:Anabilitytoapplyreasoninginformedbycontextual knowledge
toassesssocietal,health,safety,legalandculturalissuesandthe
consequentresponsibilitiesrelevanttoprofessionalengineeringpracticeandsolution
tocomplexengineeringproblems.(Cognitive)
PLO7 EnvironmentandSustainability:Anabilityto understandtheimpactof professional
engineeringsolutionsinsocietalandenvironmental contextsanddemonstrate
knowledgeofandneedforsustainabledevelopment.(Cognitive)
PLO8 Ethics:Applyethicalprinciplesandcommittoprofessionalethicsandresponsibilities
andnormsofengineeringpractice.(Affective)
PLO9 IndividualandTeamWork:Anabilitytoworkeffectively,asanindividualorina team,on
multifacetedand/or multidisciplinarysettings.(Affective)
PLO10 Communication:Anabilitytocommunicate effectively,orallyaswellasinwriting, on
complexengineeringactivitieswiththeengineeringcommunityandwithsocietyat large, such as
being able tocomprehendand write effectivereports and design
documentation,makeeffectivepresentations,andgiveandreceiveclearinstructions.(Affective)
PLO11 Project Management: An ability to demonstrate management skills and apply engineering
principles to one’s own work, as a member and/or leader in a team, to manage projects in a
multidisciplinary environment.(Affective)
PLO12 Lifelong Learning: An ability to recognize importance of and pursue lifelong learning in the
broader context of innovation and technological developments.(Affective)

Course Handbook | ECO 290 Fundamentals of Engineering Economics 6

 CLOs – PLOs Mapping

PLO Cognitive Domain Affective Domain Psychomotor Domain

PLO10
PLO11
PLO12
PLO1
PLO2
PLO3
PLO4
PLO5
PLO6
PLO7
PLO8
PLO9
CLOs

A1
A2
A3
A4
A5
C1
C2
C3
C4
C5
C6

P1
P2
P3
P4
P5
P6
P7
CLO1 X
X
CLO2 X X
CLO3

Course Handbook | ECO290 Fundamentals of Engineering Economics 7

 24 PLOs Coverage Explanation

PLO 1 - Engineering Knowledge:

Expertise in applying the fundamental knowledge of mathematics required for any career in electrical
[Link] mathematical background of the course includes basic set theory, elementary integral and
differential calculus. The homework and exams require direct application of mathematics and probability laws
to successfully complete the course.

PLO 2 - Problem Analysis:

Students learn how fundamental concepts of set theory and probability laws are used to under stand and apply
probability distributions on different engineering problems.

24 List of Experiment With Objectives as Per OBE Format

N/A

Course Handbook | ECO290 Fundamentals of Engineering Economics 8