Finance for Engineers

This course introduces fundamental financial concepts tailored for engineers, focusing on decision-making, valuation, and financial analysis in technical contexts.

Instructor: Abhishta Abhishta

Term: Q1

Location: University of Twente

Time: TBA

Course Overview

This course provides engineers with essential financial knowledge required for informed decision-making in technical and business environments.

Students will:

  • Understand core financial principles and terminology
  • Apply time value of money concepts to real-world problems
  • Evaluate investment decisions using financial metrics
  • Analyse financial risks and returns
  • Interpret financial statements in an engineering context

Prerequisites

  • Basic mathematics (algebra)
  • No prior finance knowledge required

Assessment

  • Problem sets and assignments
  • Case study analysis
  • Final evaluation

Teaching Approach

The course combines:

  • Conceptual lectures on financial principles
  • Practical problem-solving sessions
  • Real-world engineering case studies
  • Quantitative analysis and decision-making exercises

Schedule

Week Date Topic Materials
1 Introduction to Finance

Basic financial concepts and the role of finance in engineering decisions.

2 Time Value of Money

Discounting, compounding, and present value calculations.

3 Investment Decision-Making

Net present value (NPV), internal rate of return (IRR), and project evaluation.

4 Risk and Return

Understanding financial risk and expected returns.

5 Cost Analysis

Cost structures, budgeting, and financial planning.

6 Financial Statements

Interpreting balance sheets, income statements, and cash flows.

7 Engineering Economics

Applying financial tools to engineering projects.

8 Case Studies

Real-world financial decision-making scenarios in engineering contexts.