Most courses 4000-level and above can be credited to all degree programs.
All courses are subject to advisor approval.
25 class sessions plus 75 minute midterm and 3 hours final. The course will consist mainly of lectures where the instructor will explain the fundamental concepts used in the economic evaluation of industrial projects. The course will cover a number of decision rules used to select one project among multiple alternatives with due considerations of inflation, taxes and depreciation. The course will also cover capital budgeting models in which budget limits are imposed during several time periods and projects are selected to maximize an appropriate objective function. Utility theory, mean-variance analysis, stochastic dominance and stochastic programming are used in the second part of the course where the timing and the quantity of the cash flows are assumed to be random variables.