Final Review Session

Final Review Session - Final Review Session Spring...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Final Review Session Spring Engineering 110 June 1, 2011
Background image of page 1

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

View Full DocumentRight Arrow Icon
ADMINISTRATIVE 1. Monday 6/6 8am – 11am OR Monday 6/6 6:30pm – 9:30pm 2. Seat assignments 3. NO CELL PHONES 4. Bring a calculator 5. Format similar to the midterm and previous 110 finals 6. 40% of your grade for the course 7. Cumulative exam with emphasis on the 2 nd half
Background image of page 2
CHAPTER 9 – Other Analysis 1. Benefit – Cost Ratio a. Given MARR, which alternative produces more benefit on an incremental basis b. Unless input or output is fixed, calculate B/C ratio for each alternative, order from lowest to highest cost, and run defender – challenger analysis 2. Payback Period a. Uniform Series Payback period = Cost / Uniform Annual Benefit b. Non-uniform Series (trial and error) Use IRR analysis to find r where NPV = 0 – that is the payback point
Background image of page 3

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

View Full DocumentRight Arrow Icon
1. Know Expected Value 2. For expected value, remember that you will be working in PRESENT VALUE 3. If the total EV of a set of outcomes is POSITIVE, then the project is justified 4. Sum of all probabilities is 1.00 (100%)!!!!! + × + × = × = P(B) Outcome P(A) Outcome P(j) Outcome Value Expected B A j all j
Background image of page 4
1. Know the basic definition of what a depreciable asset is (used for business purposes to produce income, useful life over 1 year, and is used up, depleted, or becomes obsolete) 2. Land is not depreciable 3. Know how find book value at a given point in time 4. Know straight line depreciation 5. Know how MACRS generally works (eg. formula, salvage value assumed to be 0) CHAPTER 11 – Depreciation = = t to 1 j j t d - basis Cost BV N S B d t - = t t r B d × =
Background image of page 5

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

View Full DocumentRight Arrow Icon
6. Remember that depreciation is an ACCOUNTING concept and BOOK
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/19/2011 for the course ENGINEERIN 110 taught by Professor King during the Spring '11 term at UCLA.

Page1 / 14

Final Review Session - Final Review Session Spring...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online