Business Mathematics (3cr)

Objective

Purpose: In this course, you become familiar with the mathematical foundations of engineering economics. For example, you will learn to use indices to account for changes in prices. You will also learn to apply interest calculations to choose the most profitable investment option among alternatives.

Competences: You increase your knowledge and deepen your understanding of the mathematical foundations of your own technical specialization. You learn to apply established computational methods to support decision-making related to economics.

Learning outcomes: After completing the course, you know the basic concepts and methods of business economics that are important for an engineer. You will be able to perform calculations related to indices, interest, financing, investments, and life-cycle costs using a spreadsheet application. You will also be able to use the results of these calculations for planning operations and assessing profitability.

Content

During the course you will study the following topics:

Change in the value of money and use of indices
Gross margin calculations
Interest, discounting, and periodic payments
Financial calculations
Investment calculations
Life-cycle cost calculations
Optimal service life of equipment
Use of spreadsheet software

Qualifications

You can solve equations and simplify expressions. You understand the concept of a function. You are familiar with the basic use of a spreadsheet application.

Assessment criteria, satisfactory (1)

Sufficient 1: You have achieved the desired goals. You know a few of the concepts and methods and how to apply them in familiar situations but your reasoning is often deficient and you make mistakes in calculations.

Satisfactory 2: You have achieved the desired goals. You know many of the concepts and methods and how to apply them in familiar situations but your reasoning is sometimes deficient or you make mistakes in calculations.

Assessment criteria, good (3)

Good 3: You have achieved the desired goals. You know most of the concepts and methods and how to apply them in familiar situations showing often the ability to reason completely and calculate flawlessly

Very good 4: You have achieved the desired goals. You know most of the concepts and methods and how to apply them in new situations showing in most cases the ability to reason completely and calculate flawlessly.

Assessment criteria, excellent (5)

Excellent 5: You have achieved the desired goals. You know all the concepts and methods and how to apply them in new situations showing always the ability to combine things, reason completely and calculate flawlessly.