IET 451
HW #1
Problem 22
Month Receipts, $1000
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
500
800
200
120
600
900
800
700
900
500
400
1800
Disbursements, $1000
300
500

IET451
HW#2
Determination of F, P, and A
2.2
How much can Haydon Rheosystems, Inc. afford to spend now on an energy management system if the software
will save the company $21,300 per year for the next 5 years? Use an interest rate of 10% per year.
P = 21

IET451 - HW#3
Present Worth Calculations
3.1
Industrial Electric Services has a contract with the U.S. Embassy in Mexico to provide
maintenance for scanners and other devices in the building. If the first payment of $12,000 is
received now, what is the pr

IET451 Spring 2015
January 22, 2015
HW #1
1.1
The four essential elements involved in decision making in engineering economic analysis include:
1.
Cash flows.
2.
Times of occurrence of cash flows
3.
Interest rates for time value of money
4.
Measure of eco

IET451 - HW#4
Nominal and Effective Rates
4.14
An interest rate of 8% per 6 months, compounded monthly, is equivalent to what effective rate
per quarter?
8% per 6 months = 0.08/6 = 0.0133 per month
i = (1 + 0.0133)3 1 = 0.0405 4.05% per quarter
4.16
In N

IET451 - HW#5 Chapter 5
Alternative ComparisonEqual Lives
5.7
A company that manufactures magnetic membrane switches is investigating two production options that
have the estimated cash flows shown ($1 million units). Which one should be selected on the b

IET451 - HW#6 Chapter 6
Annual Worth Calculations
6.4
James developed the two cash flow diagrams shown at the bottom of this page. The cash flows for
alternative B represent two life cycles of A. Calculate the annual worth value of each over the respectiv