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ENG M 401 Financial Management for Engineers
Winter 2024 - January 08 to April 12
Class time: Monday, Wednesday, Friday 8:00-8:50 Location: ETLC E
Instructor:
Ming J Zuo, PhD, P.Eng
ming.zuo@ualberta.ca
Donadeo Innovation Centre For Engineering 10-
Office Hours: 9-10am Wednesday or by appointment
Course Description:
*3 (fi ) (either term, 3-0-0) The application of the fundamentals of engineering economics, financial analysis
and market assessment to engineering alternatives in the planning, development and ongoing management
of industrial enterprises. The course covers the use of engineering, economic, financial and market
assessment information in investment and business operation decisions in technology oriented companies.
Note: Credit cannot be obtained for more than one of ENGG 310, ENGG 401, ENG M 310, or ENG M 401
Prerequisites: None
Course synchronous and asynchronous content delivery schedule:
Course contents will be delivered synchronously.
TA Information:
Abril Alejandria Alvaro Munoz: alvaromu@ualberta.ca. Other info to be provided at eClass soon.
Course Objectives & General Content:
The introduction and the application of the fundamentals of engineering economics and financial analysis for
evaluation of engineering alternatives in planning, development, and ongoing management of industrial
enterprises.
Learning Outcomes:
By the end of this course, students should be able to:
1. Be familiar with financial terminology
2. Interpret income statements, balance sheets and statements of cash flow
3. Draw and read cash flow diagrams
4. Calculate the net present value of an investment or project
5. Describe the concepts of time value of money and equivalence
6. Calculate values of cash flow at various points in time
7. Evaluate and compare alternative investments of projects
Marking Scheme:
Activity (A)Synchronous Due/Scheduled Weight
Assignments Asynchronous Top 5 of 6 (see lecture
schedule)
Quizzes Synchronous Top 5 of 6 (see lecture
schedule)
Midterm exam I Synchronous Feb 16 (in class) 15%
Midterm exam II Synchronous Mar 13 (in class) 15%
Final exam Synchronous Apr 23 40%
The Faculty recommended grade point average for a 400 level course is 3.1. Instructors have the leeway to
deviate from this average and can assign grades based on their own scheme. All grades are approved by
the department chair (or delegate). The office of the Dean has final oversight on all grades.
Term Work
All term work solutions will be posted no later than the last day of classes. All term work will be returned to
students by the final day of classes, with the exception of major term work due in the last week of classes.
The latter will be returned by the day of the final examination or the last day of the examination period if
there is no final examination in the course as per university policy; instructors will make accommodations to
return these term work. It is the responsibility of the student to pick up all their term work at the specified
time and place. Any unreturned term work, shall be retained and then shredded six months after the
deadline for reappraisal and grade appeals. Final examinations will be kept for one year as required by
university guidelines and the Government of Alberta's Freedom of Information and Protection of Privacy Act.
Calculator Policy
Only approved non-programmable calculators are permitted in examinations. Any calculator taken into an
examination must have a sticker identifying it as an acceptable non-programmable calculator (gold sticker).
Students can purchase calculators at the University Bookstore with the stickers already affixed. Calculators
purchased elsewhere can be brought to the Student Services where the appropriate sticker will be affixed to
the calculator.
Text and References (Recommended):
Textbook eBook: Park C.S. (2023), Contemporary Engineering Economics, Published by Pearson
Education (US), 7th Edition, ISBN: 9780137632992.
Reference Book: Park, C.S., Zuo, M.J., Pelot, R. (2012), "Contemporary Engineering Economics, A
Canadian Perspective", Published by Pearson Canada, Toronto, 3rd Canadian Edition. ISBN
Reference Book: Flynn, P. (2009), Financial Management for Engineers, Published by Castlerock, 4th
Lecture Schedule for ENGM 401 B1 January 2024
Date
Topic Description
Posted PPT #
Textbook Sections (Park 2023)
Book Sections (Park et al. 2012)
Book Sections (Flynn 2009)
Due Dates or Comments
8‐Jan‐2024 Course overview 1 ‐ ‐ ‐ 10‐Jan‐2024 Introduction 2 1 1 1 12‐Jan‐2024 Bookkeeping and accounting 3 2.1 2.1 2 15‐Jan‐2024 Financial statements 4 2.2 2.2 2 17‐Jan‐2024 Income statement 5 2.2 2.2 3 19‐Jan‐2024 Balance sheet 6 2.2 2.2 4 Quiz 1 22‐Jan‐2024 Cash flow statement 7 2.2 2.2 5 24‐Jan‐2024 Time value of money 8 3.1 3.1 7.1 HW#1 due 26‐Jan‐2024 Economic equivalence 9 3.2 3.2 7. 29‐Jan‐2024 Interest formulas 10 3.3 3.3 7. 31‐Jan‐2024 Equivalence calculations 11 3.4 3.4 7.2 Quiz 2 2‐Feb‐2024 Nominal & effective interests 12 4.1 4.1 7.2 HW#2 due 5‐Feb‐2024 Applications of interests 13 4.2, 4.4 (Ex.4.9) 4.2, 4.4 (Ex.4.8) 7. 7‐Feb‐2024 Loans and mortgages 14 4.5 4.5 A3. 9‐Feb‐2024 Bonds 15 4.6 4.6 ‐ Quiz 3 12‐Feb‐2024 Payback methods 16 5.1‐5.2 5.1‐5.2 7. 14‐Feb‐2024 PW and FW methods 17 5.3‐5.4 5.3‐5.4 7. 16‐Feb‐2024 Midterm exam I 19‐Feb‐2024 No class Family day 21‐Feb‐2024 No class Reading week 23‐Feb‐2024 No class Reading week 26‐Feb‐2024 AE method 18 6.1‐6.2 5.5 7. 28‐Feb‐2024 ROR method 19 7.1‐7.2 5.6‐5.7 7.3 HW#3 due 1‐Mar‐2024 Total investment approach 20 5.5.1‐5.5.4 6.1‐6.2 7.
4‐Mar‐2024 IRR rule for pure investments 21
7.4.1‐7.4.2 6.3 7.3 Quiz 4 6‐Mar‐2024 Analysis period situations 22 5.5.5‐5.5.8 6.4 7. 8‐Mar‐2024 AE method applications 23 6.3‐6.5 6.5‐6.7 7. 11‐Mar‐2024 Depreciation fundamentals 24 9.1‐9.2 8.1‐8.2^ 3.4.3‐3.4.4 HW#4 due 13‐Mar‐2024 Midterm exam II 15‐Mar‐2024 Book depreciation methods 25 9.3 8.3 A3. 18‐Mar‐2024 Tax depreciation method 26 9.4 8.4 A7. 20‐Mar‐2024 Corporate income taxes 27 9.7.1 9.1‐9.4 A7. 22‐Mar‐2024 Disposal tax effects 28 9.7.3 9.5 A7. 25‐Mar‐2024 Project cash flow fundamentals 29 10.1‐10.2 10.1‐10.2^ A7.2 Quiz 5 27‐Mar‐2024 Income statement approach 30 10.3 10.3 A7.2 HW#5 due 29‐Mar‐2024 No class Good Friday 1‐Apr‐2024 No class Easter Monday 3‐Apr‐2024 Examples & applications 31 10.3 10.3 A7. 5‐Apr‐2024 Replacement (2 approaches) 32 14.1 11.1 ‐ Quiz 6 8‐Apr‐2024 Replacement (economic life) 33 14.2 11.2 ‐ 10‐Apr‐2024 Replacement (planning horizons) 34 14.3 11.3 ‐ 12‐Apr‐2024 Course summary 35 ‐ ‐ ‐ HW#6 due
23‐Apr‐2024 Final Exam 2‐4pm
COURSE OUTLINE POLICY The policy about course outlines can be found in Course Requirements, Evaluation Procedures and Grading of the University Calendar, see https://calendar.ualberta.ca/
UNIVERSITY AND
FACULTY POLICIES
AUDIO/VIDEO RECORDING
Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).
Only those items specifically authorized by the instructor may be brought into the exam facility. The use of unauthorized personal listening, communication, recording, photographic and/or computational devices is strictly prohibited. Students should refrain from bringing any unauthorized electronic device into an examination room, including cell phones, high tech watches, high tech glasses or other such devices.
RESPECT AND PROFESSIONALISM
The Faculty of Engineering is committed to fostering and protecting an equitable, inclusive, and
respectful work and study environment in line with University of Alberta policies and professional
engineering industry standards. University is an opportunity for students to explore areas of interest
and to potentially pursue a career in a specific field. The Faculty of Engineering prepares students to
uphold industry standards to become a Professional Engineer (P. Eng). Respect, professionalism, and
accountability must be upheld within the Faculty of Engineering.
Harassment and discrimination are serious issues that have a negative effect on culture and
therefore the Student Conduct Policy states that no student shall discriminate against or harass any
person or group of persons. The Faculty expects an environment free of harassment, discrimination,
and bullying. Please refer to the Definitions for Discrimination, Accommodation and Harassment.
SAFETY DURING
LEARNING ACTIVITIES
In all Faculty of Engineering courses,
labs, seminars or other learning
activities, safety is of paramount
importance. In some cases,
laboratory work in a program
requires high standards for risk
management to keep potential
hazards safely under control. Anyone
found to be unable to function safely,
due to intoxication, harassment or
discriminatory behaviour, or other
reasons, in the class, lab, seminar or
other learning activity may be asked
to leave or be removed for their and
the safety of other participants and
instructors in alignment with the
Student Code of Behaviour or
Student Conduct Policy. As members,
or prospective members, of the
engineering profession, it is your
responsibility to identify and inform
the proper authorities of an unsafe
work/learning environment. ENG M 401 - Winter 2024^ Page 5
NEED
HELP?
HELP
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There are a lot of services available to students on campus and in Edmonton, and sometimes it's hard to know where to go. While this isn't a comprehensive list, the services shown here should at least give you some ideas about where to start. If you're still not sure, check out the services just beneath this box—they'll give you the guidance you're looking for.
Empower Me (international) 1-833-628-
WELLNESS
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find the right help for your
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uab.ca/ask
FINANCIAL
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For awards and other funding supports.
uab.ca/ask
Campus Food Bank
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If you're worried about someone because of the things they've been saying or doing, or there's a noticeable change in their behaviour (often in multiple ways), contact HIAR, who will protect your confidentiality and help decide how best to support the person.
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CONFIDENTIAL
SUPPORT
Office of Safe Disclosure
and Human Rights
The OSDHR advises confidentially on sensitive issues you may not feel comfortable solving on your own. Contact the OSDHR if you want to get help or to make a report while keeping your privacy.
780-492- osdhr@ualberta.ca
ACADEMIC
Engineering Student Services
Drop-in, first-come, first-served advising.
E: enggadvising@ualberta.ca
Engineering Student Success Centre
Drop-in tutoring for first-year courses.
E: dessc@ualberta.ca
Academic Success Centre
Many services to maximize your academic success. E:
success@ualberta.ca | M-F, 8:30am-4:30pm
Academic Accommodations
Connects students with disabilities to
accommodations. E: arrec@ualberta.ca
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Office of the Student Ombuds
Call for complex problems and conflict mediation.
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