Economic Analysis of Engineering Projects ISE 561 Lecture 4
1
Tax Depreciation
Purpose: Used to compute income taxes for the IRS Assets placed in service prior to 1981 Use book depreciation methods (
ISE 561 Spring 2012 Midterm
March 06, 2011
Start (clock time)_ Date_
Stop (clock time)_
Name (Print) _
SCORE (Out of 120)_
MIDTERM EXAM (2 hours)
1.
This is an open book exam. You may use your textboo
Economic Analysis of Engineering Projects ISE 561 Lecture 9
1
Preference and Ordering Rules
The main objective in utility theory under uncertainty is to maximize expected utility. We will demonstrate
Economic Analysis of Engineering Projects ISE 561 Lecture 3
1
Laplace Transform and Present Value
Present value of the infinite continuous cash flow streams, assuming continuous compounding, is given
Economic Analysis of Engineering Projects ISE 561 Lecture 2
Present Value of a Deferred Annuity
+
P = ?
Cash flow

i given 1 n A given n+1 N Time
0
Two alternative formulas: P = A (P/A, i%, Nn+1) (P
1/31
Linear Programming
Frequently Asked Questions
Optimization Technology Center of
Northwestern University and Argonne National Laboratory
Posted at http:/wwwunix.mcs.anl.gov/otc/Guide/faq/linearp
Economic Analysis of Engineering Projects ISE 561 Lecture 11
1
Principles for Decisions Under Risk
The principle of expectation states that the alternative to be selected is the one that has the minim
Economic Analysis of Engineering Projects ISE 561 Lecture 12
1
Capital Market Theory:an Overview
Capital market theory
Extends portfolio theory Develops a model for pricing all risky assets Allows
Economic Analysis of Engineering Projects ISE 561 Lecture 5
1
Selecting Minimum Attractive Rate of Return
One of the most important concepts in economic analysis is the minimum attractive rate of ret
Economic Analysis of Engineering Projects ISE 561 Lecture 6
1
Multiple Interest Rates
The solution to PW = 0 may not be unique. In general, the equations are polynomial of degree greater than one, and
Economic Analysis of Engineering Projects ISE 561 Lecture 7
1
Comparing Mutually Exclusive Projects Principle: Projects must be
compared over an equal time span. Rule of Thumb: If the required service
Economic Analysis of Engineering Projects ISE 561 Lecture 8
1
Exam Review
Time Value of Money Interest Factors etc. ZTransform + Laplace Transforms: How to apply Ztransforms and Laplace Transforms Alt