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Lecture 1 UP NICE

The document outlines the agenda and key concepts for the ECO-130 Engineering Economics course, including financial statements, accounting issues, and course learning outcomes. It details various methods for calculating the cost of computers sold and their associated profits. Additionally, it provides assessment criteria and course objectives, emphasizing financial analysis and sustainable economic decision-making.

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Saad Abbasi
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21 views12 pages

Lecture 1 UP NICE

The document outlines the agenda and key concepts for the ECO-130 Engineering Economics course, including financial statements, accounting issues, and course learning outcomes. It details various methods for calculating the cost of computers sold and their associated profits. Additionally, it provides assessment criteria and course objectives, emphasizing financial analysis and sustainable economic decision-making.

Uploaded by

Saad Abbasi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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LECTURE 1

ECO-130
Engineering Economics
Agenda
Basic Concepts 01
Defining Scope

Financial Statements 02
Why all the recording

Course Outline 03
Every picture has a canvas

Today’s Special 04
If we get time
Basics
• Accounting

• Finance

• Economics

• Engineering
Economics
Financial
Statements
1. Financial
Performance

2. Financial position

3. Cashflows

4. Share Holders
Wealth Statement
Accounting Issue

• On 1st Jan 2021 ,Bought 3 computers @ 40,000 each

• On 1st March 2021 Bought 6 computers @ 50,000

each

• On 1st April 2021 , Sold 6 computers @ 60,000

each
Sales ( 60,000 x 6 ) = 360,000
FIFO Method LIFO Method Average Method

Computer Cost Computer Cost Computer Cost Computer Cost

1 40,000.00 1 40,000.00 1 40,000.00 1 46,666.67

2 40,000.00 2 40,000.00 2 40,000.00 2 46,666.67

3 40,000.00 3 40,000.00 3 40,000.00 3 46,666.67

4 50,000.00 4 50,000.00 4 50,000.00 4 46,666.67

5 50,000.00 5 50,000.00 5 50,000.00 5 46,666.67

6 50,000.00 6 50,000.00 6 50,000.00 6 46,666.67

7 50,000.00 7 50,000.00 7 50,000.00 7 46,666.67

8 50,000.00 8 50,000.00 8 50,000.00 8 46,666.67

9 50,000.00 9 50,000.00 9 50,000.00 9 46,666.67

Cost of 6 computers Cost of 6 computers Cost of 6 computers


270,000 300,000 280,000

Profit 90,000 Profit 60,000 Profit 80,000


COURSE OUTLINE

ECO-130 Objectives
DESCRIPTION Book
Engineering Eco
Theory- 2 Engineering Financially
Contact hours 32 Economy
CAPITAL Evaluate
Prerequisite – 7th edition
None BUDGETING Leland Blank
Engineering
Mode of Teaching- Anthony Tarquin Projects
Interactive lectures
COURSE LEARNING
OUTCOMES (CLOs)
COGNITIVE –PLO 2
Carryout financial analysis of engineering
1 projects of public and private sector.
COGNITIVE –PLO 11 2
Analyze cash flows of engineering 3
projects over their entire life to make
informed decisions COGNITIVE –PLO 12
Use cost/revenue data to make sustainable
economic decisions.
ASSESSMENT
CRITERIA
Assign
5-10% Quizzes
10-15% Mids
25-35%
40-50%

Assignments Quizzes MSE ESE


Syllabus will be Syllabus will be shared

4-5 4-5 shared before exam before exam

ON LMS only NOTE: Mostly its all we have NOTE: Mostly its all we have
discussed
discussed
PRIORITY MATRIX
THANK YOU

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