Opetussuunnitelmat

Objective

Purpose
You get to know the mathematical principles of business economy. You understand the time value of money. You are able to estimate the profitability of operations by using financial calculations.

Learning outcomes
You know the basic concepts and methods in business economy used by engineers. You can perform calculations involved with interest, indexes, financing, investment and life cycle cost by using spreadsheets and make estimates based on them about the economic worth of operations.

Content

Time value of money. Using indexes.
Interest, discounting and recurring amounts
Financial calculations
Investment calculations
Life cycle cost calculations
Optimal replacement time of equipment
Using Excel

Location and time

This implementation takes place 28.8.2023 - 5.11.2023.

Oppimateriaali ja suositeltava kirjallisuus

Learning material prepared by teacher.

Books in Finnish:
- Saaranen, P., Kolttola, E. & Pösö, J. 2016. Liike-elämän matematiikka. 11. uudistettu painos. Helsinki: Edita.
- Pulkkinen, P. & Holopainen, M. 2006. Talous- ja rahoitusmatematiikka. 4. uud. p. Helsinki: WSOY oppimateriaalit.

Books in English:
- Park, C. S. 2019. Fundamentals of engineering economics. Fourth edition, Global edition. NY, NY: Pearson.
- Newnan, D. G., Eschenbach, T. G. & Lavelle, J. P. 2016. Engineering economic analysis. International twelfth edition. New York: Oxford University Press.
- Farr, J. V. & Faber, I. 2021. Engineering Economics of Life Cycle Cost Analysis. Boca Raton, FL: CRC Press.

Teaching methods

Face-to-face learning: Lectures at the Rajakatu campus, exercises and independent studying.

Employer connections

-

Exam schedules

The exams will take place at:
- Lessons of the week starting on 30.11.
- First resit 22.11.2023
- Second resit 13.12.2023

International connections

-

Vaihtoehtoiset suoritustavat

- Online implementation in Finnish in the fall of 2023 or in the spring of 2024
- Hybrid implementation in Finnish in the fall of 2023 or the spring of 2024
- Face-to-face implementation in Finnish in the fall of 2023

Student workload

3cr = 3*27h = 81h, of which...
- lessons approximately 24h
- exams approximately 4h
- independent studying approximately 53h

Content scheduling

More precise timing will be presented in the beginning of the course, but the topics will be discussed more or less in the following order:
- indices and inflation
- simple interest
- compound interest
- periodic payments
- financial calculations
- investment profitability calculations
- comparison of investment alternatives
- profit margin calculations

Further information

Final exam in two parts. Part 1 determines whether you pass or fail, part 2 determines your grade.

Evaluation scale

0-5

Arviointikriteerit, tyydyttävä (1-2)

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.

Arviointikriteerit, hyvä (3-4)

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.

Qualifications

Basic use of spreadsheets