Catalog Description:

Economic theory of capital allocation decisions. Current and relevant views of managerial economics used to present a unified theory of capital allocation appropriate to private, public and governmental entities. Integrated application of economic and operations analysis to managerial problem-solving and decision making processes. Study of inflation and tax consequences on economic decisions. Open to all majors. Four 1-hour lecture discussions. Prerequisites: Completion of GE Area A and sub-areas B1, B2, B3, and D1, D2, D3. Fulfills GE Interdisciplinary Synthesis sub-area B4 or D4

Course Objectives:

Understand the sources of capital and how to evaluate alternative uses.

Understand the "time value of money" and related theory.

Become familiar with common terminology, conventions, and calculations related to financial calculations.

Know how and when to use various analysis methods for analyzing economic decisions.

Be able to choose the most appropriate analysis methods for a given situation and defend your approach.

Be able to present findings both orally and in written form in a manner appropriate for decision makers.

To be familiar with ethical issues related to capital allocation and develop a strategy for dealing with these issues when they arise.