Problem Set 1 - E120 Principles of Engineering Economics Fall 2010 Problem Set#1 1

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E120 Principles of Engineering Economics Fall 2010 Problem Set #1 1. Penguin Pucks, Inc., has current assets of $5,100, next fixed assets of $23,800,  current liabilities of $4,300, and long-term debt of $7,400. What is the value of  the shareholders’ equity account for this firm? How much is net working capital? 2. Papa Roach Exterminators, Inc., has sales of $586,000, costs of $247,000,  depreciation expense of $43,000, interest expense of $32,000, and a tax rate of  35 percent. What is the net income for this firm? 3. Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7  million. The machinery can be sold to the Romulans today for $4.9 million.  Klingon’s current balance sheet shows net fixed assets of $3.7 million, current  liabilities of $1.1 million, and net working capital of $380,000. If all the current  assets were liquidated today, the company would receive $1.6 million cash. What 
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This note was uploaded on 11/22/2010 for the course ENGIN 120 taught by Professor Ilan during the Fall '08 term at University of California, Berkeley.

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Problem Set 1 - E120 Principles of Engineering Economics Fall 2010 Problem Set#1 1

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