CPE 522: Economic Appraisal of Chemical and Petroleum Projects

Course Description:
Consideration of the economic factors important in the development of the chemical or petroleum enterprise. Applications of economic evaluation methods to engineering project development. Consideration of risk and uncertainty in project development. Prerequisite: MATH 122, C&PE 121, PHSX 211, and C&PE 221 or consent of instructor.

Page Contents:
Introduction and Calender
Lecture Presentations
Excel Spreadsheets
Exam Solutions

Introduction and Calendar
Course Introduction
Course Calender

Lecture Presentations
Lecture 2: Time Value of Money
Lecture 3: Review of Time Value of Money with MPS 6-Step Problem Solving Strategy
Lecture 4: Time Value of Money: Example Problems
Lecture 5: Discrete and Continous Compounding Interest Factors
Lecture 6: Continous Compounding Interest Factors Continued
Lecture 7: Inflation
Lecture 9: Inflation and Bonds
Lecture 10: Measure of Worth
Lecture 11: Capital Recovery
Lecture 12: Comparison of Alternatives
Lecture 13: Comparison of Projects - Ranking and Incremental
Lecture 14: Remaining Topics in Chapter Five
Lecture 15: Cash Flow Patterns and Taxes
Lecture 16: Taxes and Depreciation
Lecture 17: Exam 2 Review
Lecture 19: Taxes and Depreciation
Lecture 20: After-Tax Analysis with Inflation
Lecture 21: Uncertainty and Risk
Lecture 22: Probability
Lecture 24: Monte-Carlo Simulation 1
Lecture 25: Monte-Carlo Simulation 2
Lecture 26: Taxes and Uncertainty
Lecture 29: Public and Regulated Sector Projects
Lecture 30: Cost-Effectiveness Analysis
Lecture 31: Final Review

Homework 13 & 14 Handout
Homework 15 Handout
Homework 19 Handout
Homework 20 Handout
Homework 21 Handout
Homework 24 Handout

Excel Spreadsheets
Interest Factors
Discrete Interest Factors
Homework Ten Solution (must open w/ Discrete Interest Factors)
Ranking Approach (must open w/ Discrete Interest Factors)
MACR-GDS Depreciation Calculations
Monte Carlo
HW21 Base Case
Monte Carlo 4

Exam Solutions
Exam 1 Solution
Exam 2 Solution
Exam 3 Solution

Last Updated 6:50 PM 12/12/03 by David Tarverdi