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IE 303
Decision Economics

Faculty Faculty of Engineering and Natural Sciences
Semester Summer 2025-2026
Course IE 303 - Decision Economics
Time/Place
Time
Week Day
Place
Date
08:40-11:30
Mon
FENS-L063
Jul 6-Aug 21, 2026
08:40-11:30
Wed
FENS-L063
Jul 6-Aug 21, 2026
Level of course Undergraduate
Course Credits SU Credit:3, ECTS:6, Engineering:6
Prerequisites -
Corequisites
Course Type Lecture

Instructor(s) Information

Fatemeh Karamyar

Course instructor Fatemeh Karamyar

Email: Fatemeh.karamyar@sabanciuniv.edu
Office Hours: Tuesday 13:30-15:30

Course Information

Catalog Course Description
Time value of money; discounted cash flow analysis; break-even analysis; equivalent worth methods; rate of return methods; bond calculations; evaluation of alternative capital investment proposals considering depreciation, inflation, taxes; make or buy analysis; replacement analysis.
Learning Outcomes:
1. Apply key engineering economics concepts relevant to industrial and service systems, including time value of money, cost structures, and interest computations.
2. Apply equivalent worth methods (PW, AW, FW) to compare alternative processes, systems, and investments.
3. Apply rate of return methods (IRR, ERR) to compare alternative processes, systems, and investments.
4. Understand depreciation concepts and conduct after-tax cash flow analysis.
5. Incorporate inflation and cash flow in different currencies in engineering economic analysis.
Course Objective
This course aims to equip students with the knowledge and analytical skills necessary to evaluate engineering alternatives using economic principles, time value of money concepts, and quantitative decision-making techniques to make cost-effective and sustainable engineering decisions. The main techniques are equivalent worth methods and rate of return methods by considering tax consequences, inflation and different currencies.
Sustainable Development Goals (SDGs) Related to This Course:
Industry, Innovation and Infrastructure

Course Materials

Resources:
Contemporary Engineering Economics, Chan S. Park, 6th edition
Engineering Economy, Sullivan, Wicks, Wilck, 18th edition.
Technology Requirements:

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