Final Review Session

# Final Review Session - Final Review Session Spring...

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Final Review Session Spring Engineering 110 June 1, 2011

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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
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

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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
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 × =

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6. Remember that depreciation is an ACCOUNTING concept and BOOK
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## This note was uploaded on 10/19/2011 for the course ENGINEERIN 110 taught by Professor King during the Spring '11 term at UCLA.

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Final Review Session - Final Review Session Spring...

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