James Cook University Subject Handbook - 2003

EG4000:03

Engineering Economics and Entrepreneurship *

39 hours lectures, 39 hours tutorials and seminars. Semester 1.

Engineering project cash flow streams, discounted cash flow techniques, uncertainty and sensitivity analysis; depreciation; costs, volume and profit analysis; supply, demand and price analysis; national income accounts. Accounting terminology; balance sheet; profit and loss statement; accounting ratios. Entrepreneurship, corporate structure and sources of funds; business plan development.

Learning Objectives:

1. understand the basic accounting framework and the interpretation of accounting reports and be able to discuss with accountants, in their language, issues associated with organisational performance;
2. develop an attitude for working as a team member and leader, dealing with other people and handling contracts and resolving conflicts;
3. acquire an understanding of economic principles of time value of money, depreciation, inflation and break-even and its application to the evaluation of engineering projects;
4. learn to undertake problem identification, formulation and solution;
5. advance effective oral and written communication skills;
6. understand professional and ethical responsibilities.

Assessment by examination (50%-70%); on-course assessment (30%-50%).