Engineers cannot see their designs come to fruition, take shape, and be implemented without the acquisition of necessary funds. Since most engineering curricula don’t include significant financial analysis and engineering economics skill dissemination, this course fills that gap. In this course, you learn about finance, engineering economics, and corporate reporting requirements. Engineers need to be able to, objectively and quantitatively, show the advantages and disadvantages of various engineering design options to their clients and employers. After all that is the 2nd Code of Engineering Ethics requirement for all Licensed Professional Engineers. 

One way to view the value of this course is to see it as a “Crash MBA” Course for Engineers, Professionals, and Managers. This course is themed after a book published by the instructor, Prof. Rauf, titled: "Finance and Accounting for Energy Engineers," published through River Publishers. In this course, you learn to perform time value of money calculations using equations or financial factor tables explained in a simple and easy to understand way, illustrated through practical examples, just the way Prof. Rauf does in his book. 

You will learn asset depreciation methods and their influence on net profit and taxes. Learn about the widely used and accepted capital investment performance metrics, such as financial ratios, payback period, breakeven, and NPV, etc. You learn about fundamental accounting methods: The Income Statement and the Balance Sheet. You will get an appreciation of the role played by inventory systems in the control of net income, net profits and tax liability. Life cycle cost and other cost classifications in industrial and commercial organizations are covered. 

This course is designed for engineers, professional engineers, energy professionals, engineering managers, technical professionals, facilities  managers and other professionals who are not intimately familiar or current on finance, accounting, time value of money analysis, and engineering economics principles and practices. Participants are kept engaged through questions and answers, discussions and classwork. 

Course Outline

1. Finance, Engineering Economics and Accounting Concepts: Definitions, Discussion and Examples of Calculations.

a) Economics and engineering economics

b) Common Organizational Structures - Role of Financial Analysts, Accountants, Controllers and CFO’s

2. Income Statements and Balance Sheets. Cash Flow and Working Capital Concepts 

3. Financial Reporting Requirements

4. Financial Metrics and Ratios: Payback Period, FV, PV, Time Value of Money Conversions and Analyses. IRR, ROI, NPV, ROE, ROR, Current Ratio, Acid Test Ratio, Plant Turnover Ratio

5. Depreciation Alternatives: S/L, Prod. Based, SOY Digits. 

6. Inventory Concepts: FIFO, LIFO, EOQ, Inv. Turnover Ratio, WIP Inv., Inv. Carrying Costs.

7. Lease vs. Buy Decisions. Repair vs. Replace Decisions

8. Costs: Life Cycle Cost. Period Costs, Direct and Indirect Costs.