Using Concepts From Statics And Mechanics Of Materials To Teach Engineering Economy

The spectrum of topical knowledge ranges from an awareness of a lack of knowledge to application of the knowledge without thought about the implied knowledge. The acquisition of knowledge can be facilitated when previous knowledge or experience can be applied to the learning process. In Engineering Economy, the toolbox calculations are based on algebraic expressions for the relationship between present worth, future worth, or annual payments as a function of interest rate and number of compounding periods. For a basic toolbox equation with four parameters (e.g., P, A, F, i, or n), it is intuitive for engineering students that three of these parameters must be specified in order to solve for an unknown (i.e., one equation and one unknown). These problems may be solved without much thought about the implied knowledge. After students become familiar with the basic toolbox calculations, the concept of Equivalence is introduced. This topic is based on a definition and is therefore not as intuitive. It is apparent that there is a different rate of learning and therefore ability to apply the concept. As students become familiar with the concept, errors as well as the time needed to solve an Equivalence problem decrease. The generally accepted approach is to teach the concept by presenting numerous applications of the definition. This paper presents an alternative by integrating the previously learned concept of moments from Statics and Mechanics of Materials. In this approach, students are able to perform the calculations with little understanding and then learn the concepts. The result is that much less time is allocated to learning these topics.