The Roles of Tabulated Factors, Financial Calculators, and Spreadsheets in Engineering Economy Teaching

Abstract

For decades engineering economists have discussed the balance between using tabulated engineering economy factors and spreadsheets for the first course in engineering economy. However, the potential role of financially capable calculators has been ignored. Many engineering economy faculty personally use a financial calculator for time value of money (TVM) calculations, but judging from engineering economy texts and past discussions at conferences there is little or no use of such calculators by students. Such calculators allow us the opportunity to phase out the tables and reduce the fraction of our courses that is spent on financial arithmetic. Students should be able to use tables, calculators, and spreadsheets, but our courses and their preparation for professional practice can be improved by minimizing the amount of time spent using tabulated factors.

Notes

^aNeedy et al. (2000).

^bGibbons (2009).

^cThese results assume that all IEs take the course and then calculates what fraction of each major in row 2 takes the course to give the split in students majors in row 1. This calculation also removes the 7% of other majors.