Unformatted text preview: IE 430: ECONOMIC FOUNDATIONS OF QS Final Exam Prep Guide
Prof. R. Nagi Comprehensive: Topics 1 through 12 (See CT column in course schedule) Iii-class, two-hour exam. Present your work and steps clearly for partial credit. Make appropriate assumptions
where necessary — do mention them. No questions and no extra time, please. Basic Guidelines 1. Number of Questions:
4 total 2 multi-part, short-answer or calculation-oriented questions.
2 quantitative (calculation-oriented, may also include small parts). . Closed book, closed notes . No cheat sheet. vii-03M . Any other formulas will be provided or they will be so basic that you need to know them
5. Bring a scientiﬁc calculator (please do not program anything, no graphical functions) 6. Bring pen, pencil; Exam will be attempted on the question sheet itself. Most questions will be drawn from the following: 1. Use of series, factors in worth/equivalence calculations . Use of effective interest rate in worth/equivalence calculations
. Payback period, discounted payback period, and present worth calculations
. Unit cost or proﬁt calculations . Annual worth calculations and costing 2 3 4 5 6. Economic life of an equipment 7. Development of after tax cash ﬂow: Depreciation (SL, SOYD or DDB) + Taxation
8. Simple, non-simple, pure and mixed investments in Rate of Return Chapter
9 . Inﬂation and its impact on project analysis 10. Economic life of an asset 11. Defender-Challenger replacement under inﬁnite and ﬁnite life...
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- Fall '08