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2nd_exam_OB3_key - Student Name UTEID ME353 Engineering...

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Student Name & UTEID 1 ME353 Engineering Finance key Second Midterm Exam Open Book You may use Excel, the ME353 website, the Excel add-ins and the course textbook. You may not use the Blackboard class site. You may not open files prepared before the exam. You may not communicate with others. The exam is presented in this document. To receive credit you must answer the questions in the spaces provided. Submit an Excel workbook through Blackboard when you are finished with the exam. Include a worksheet for each of the first three problems. 1. (15 Points) A chicken farm receives delivery of young chickens on February 1. During the year, the chickens lay eggs that are sold to grocery stores with revenues as recorded in the table below. There are spikes in sales around Easter and Christmas. Food costs rise early in the year until the chickens are mature. The initial cost of the flock of chickens is $10,000, incurred on Feb. 1. They are sold to a soup maker for $2,000 at the end of December (treat as salvage value). All revenues and costs are expressed at the end of each month. During January, the farm is closed and there is no revenue or food cost. Month Cost Month Revenue Food Cost January 0 0 February $1000 $600 March 1000 700 April 6000 800 May 1000 900 June 1000 1000 July 1000 1000 August 1000 1000 September 1000 1000 October 1000 1000 November 1000 1000 December 6000 1000 The farm expects similar costs and revenues each year. The owner has a MARR of 18% nominal annual interest. Interest is compounded monthly. Use the Economics add-in.
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