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Economics for Engineers

Code

GBE-ECE1

Version

1.0

Offered by

Global Business Engineering

ECTS

5

Prerequisites

Basic math and working in excel

Main purpose

The main purpose of the course is to enable students to assess and present the financial consequences of a business case concerning investments in capital equipment and/or product / market development.

 

Knowledge

Upon completion of this course, the student will be able to:

  • Read and understand company financial reports
  • Explain how companies make decisions on investments and carry out risk assessments in connection with investment decisions
  • Identify methods for making calculations and assessments of investment proposals
  • Identify different options for raising capital for company investments
  • Explain methods for optimizing companies' use of working capital

Skills

​Upon completion of this course, the student will be able to:

  • Analyze and interpret company financial reports in a communication context.
  • Select and apply methods for making calculations and assessments of companies' investment proposals
  • Select and apply methods for analyzing the risk profile of companies' investment proposals
  • Use methods to measure company financial performance
  • Apply methods that can optimize companies' use of working capital

Competences

Upon completion of this course, the student will be able to:

  • Carry out and present calculations of the return on an investment, perform sensitivity analysis and set up relevant scenarios and probability analysis.
  • Act as a constructive sparring partner for executives' who are responsible for decisions about strategic investments in and financing of capital equipment and or product/market development
  • Evaluate and present the financial consequences of an investment proposal.

Topics

Teaching methods and study activities

​The teaching methods will be a combination of lecturer presentations,  casework and assignments individual or in groups.  

Product:
Hand in of assignments and  case work on investment decisions

Ongoing evaluation and feedback during the course:
Feedback on hand ins.

 

Resources

Edie McLaney
Business Finance – Theory and practice 11th Edition
Cases and relevant articles

Evaluation

Examination

Prerequisites for exam: 
No

Exam type
:
3 hours written exam.
External censor
 
Tools allowed:
All except access to internet.

Re-exam
Same as ordinary exam

Grading criteria

​7-point scale

Additional information

Responsible

Lars Grunnet Jespersen

Valid from

2/1/2023 12:00:00 AM

Course type

Compulsory Course for Mechanical Engineering
4. semester

Keywords

Financial reporting and ratio analysis. Investment appraisal methods, Risk analysis in relation to investment decisions. Sources of financing. Optimizing of working capital.