Curricula

Objectives

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

Time and location

The course is implemented from September 2, 2024, to December 8, 2024.

Learning materials and recommended literature

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

Flipped learning: The theory is studied independently using written material and instructional videos before the weekly lesson. During the weekly contact session, the focus is on problem-solving exercises and personal guidance. Attendance is mandatory at the weekly sessions.

Active participation in solving exercise tasks is necessary to achieve the learning objectives.

Practical training and working life connections

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Exam dates and retake possibilities

Exams will be held during the week starting on December 2nd.

The first retake session will begin on the week starting on January 13, 2025.

The second retake session will begin on the week starting on February 3, 2025.

International connections

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Alternative completion methods

- Hybrid implementation in Finnish in the fall of 2024 or the spring of 2025
- Online implementation in Finnish in the spring of 2024
- Face-to-face implementation in English in the fall of 2024

Student workload

3cr = 3*27h = 81h, of which...
- lessons approximately 18h
- exams approximately 4h
- independent studying approximately 59h

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:
- profit margin calculations
- indices and inflation
- simple interest
- compound interest
- periodic payments
- financial calculations
- investment calculations

Further information for students

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

If a student enrolled in the course does not show activity within three weeks of the start of the course, the enrollment will be rejected.

Evaluation scale

0-5

Evaluation criteria, satisfactory (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.

Evaluation criteria, good (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.

Evaluation 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.

Prerequisites

Basic use of spreadsheets