HW9 solutions (1).docx - CAE419 Introduction to...

Info icon This preview shows pages 1–2. Sign up to view the full content.

CAE419 Introduction to Transportation Engineering and Design Semester Fall 2017 Homework 9: Engineering Economics and Project Evaluation 1. Find F given P and i F = P ( F / P, 12 , 5 ) = 1000 ( 1 + 12 ) 5 = 1762.34 2. Find F given P and i F = P ( F / P, 6 , 12 ) = 1000 ( 1 + 6 ) 12 = 2012.2 3. Find i based on P, A, and n Solve 800 = 222 ( P A ,i, 5 ) for i 800 222 ( 1 + i ) 5 1 i ( 1 + i ) 5 = 0 i = 12 4. Find P given F P = F ( P / F , 6 , 12 ) = 1000 / ( 1 + 6 ) 12 = 496.969 5. Find A given P A = P ( A / P, 12 , 4 ) = P i ( 1 + i ) 4 ( 1 + i ) 4 1 = 2000 0.12 ( 1 + 0.12 ) 4 ( 1 + 0.12 ) 4 1 = 658.469 6. In sum Year 0 1 2 3 4 5 Profit/cost ($) -35,000 10,000 8,000 9,000 7,000 10,000 Present Worth -35000 8928.57 6377.55 6406.02 4448.63 5674.27 Total=-3164.96 7. Project A: Annual Equivalent Cost: 30000*(A/P,12%,8)+2000+6000=14039.1 Project B: Annual Equivalent Cost: 36000*(A/P,12%,8)+2500+7000=16746.9
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '14
  • ZongzhiLi

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern