INDM5240-Engineering Economy
CASE STUDY-Financing a House
When a person or couples decide to purchase a house, one of the most important considerations is
the financing. There are many methods of financing the purchase of residential property, each
having

Assignment 6- Break Even Analysis
03/27/2014
13.1 A design-to-cost approach to product pricing involves determining the selling price of the
product and then figuring out if it can be made at a cost lower than that. Banner Engineerings
QT50R radar-based s

Assignment-7
04/11/2014
Risk and Sensitivity Analysis
1. Why should sensitivity analysis is considered in engineering economic analysis?
In an engineering economy analysis, all the factors used are estimates for their future
occurrences. Engineering econo

Kevin Bennett
INDM5240
Assignment 2
Definition of EE and Ethics
Engineering Economy
Engineering Economy is the study that involves technical consideration and it is a
comparison between technical alternatives in which the differences between the alternati

Question 1
1 out of 1 points
Identify the compound period for the following interest statements: a) Nominal 7% per
year compounded quarterly: b) effective 6.8% per year compounded monthly; c) effective
3.4% per year compounded weekly.
Selected
Answer:
Co

Assignment Two
This assignment is divided into two parts with 30 points: 1) writing essay and 2) a quiz.
Part One Definition and role of Engineering Economy in Decision Making (10 points)
You will use your research, analysis, and writing skills in complet

Chapter 5
1 INCORRECT
In a present worth comparison of alternatives with unequal lives, the study period to use should be
equal to the life of the longer-lived alternative.
A)
TRUE
B)
FALSE
Feedback: Any length of study period can be used, as long as the

Chapter 4
1
A nominal interest rate always has a compounding period equal to or less than a year.
A)
TRUE
B)
FALSE
Feedback: Interest can be compounded over any time period.
2 CORRECT
When deposits are made into an account between compounding periods, tho

Chapter 3
1
For a uniform series of monthly cash flows that begins at the end of five years (i.e., month 60), the P/A
factor will yield a P value at the end of year four (i.e. month 48).
A)
TRUE
B)
FALSE
Feedback:
The P value will be at the end of month 5

Kevin Bennett
INDM5240 spring 2016
Assignment 5 Case Study
1. Evaluate plan C and select the best financing method.
Plan C is a 15 year fixed rate, 9.5% per year interest, and 5% down payment
a) Down payment (5% of $150,000)
(.05x150000)
b) Origination fe

The Market interest rate is the interest rate that hass been adjusted to take inflation into ac
It is a combination of real interest rate and the inflation rate and therefore it changes as the
inflation rate changes.
a
b
c
The market interest rate is high

Group-II Project Outline
by
Monalisa Biswas
Saikiran Lakkakula
Chaitanya Vanga
Vamshidhar Reddy Vanget
IndM 5240 Engineering Economics
University of Central Missouri
OUTLINE
Summary:
The main outcome of this project is to use an Engineering Economic analy

Engineering Economics Analysis of Automotive Fuel Economy Potential
IndM 5240 Engineering Economics
Chaitanya Vanga
University of Central Missouri
1. Abstract or executive summary
A Fuel Economy indicator having a fuel economy calculator responsive to veh

Assignment-2
Definition of Engineering Economy and Ethics
Definition of Engineering Economics
As my point of view engineering economics is currently an integral part of the senior design
course in all Engineering curricula. The main topics normally covere

Ind5240- Engineering Economy
Midterm Exam
1) Identify at least four (4) parameters for calculating the real option value. Briefly explain
definition of each parameter?
The parameters for calculating the option value of future cash flows, the investment co

Assignment 7- Effects of Inflation
14.2) State the conditions under which the market interest rate is
Solution:
Market interest rate is the interest rate that has been adjusted to take inflation into account.
This is the interest rate we hear every day. I

Additional Excel Spreadsheet Exercise #3
Introduction to Engineering Economy Formulas
by
Dr. Jeffrey Adler, P. E.
MindBox, Inc.
(formerly of Civil Engineering
Rensselaer Polytechnic Institute)
How to use this section:
Each exercise requires the developmen

Assignment Three
The quiz is worth 31 points including Five (5) T&F, 6 matching and 20 multiple choice
questions (1 pt each). I recommended that you carefully read Chapter Two from the
textbook, understand the concepts prior to work on these questions. It

Kevin Bennett
INDM5240 spring 2016
Assignment 7
Problems 14.2, 14.8, 14.14, 14.28, 14.39
Question 1: Why should sensitivity analysis be considered in engineering economic analysis?
Question 2: Explain the costs associated with undertaking sensitivity anal

Assignment-7
Problem 14.2
a) Market intrest rate is higher during period of inflation.
b) Market intrest rate is lower during period of deflation.
c) Market intrest rate is same as the real intrest rate when inflation is zero.
Problem 14.8
Nominal intrest

Assignment-2
Engineering Economy
Vinay Kumar Patchipulusu
Part 1
Engineering economy is about deciding monetary elements when there is more than
one different option for make a choice. Building financial aspects is a mix of numerical
computations and tech

Risk and Sensitivity analysis
Question 1
Sensitivity analysis is important when one or more variables in monetary examination are liable to change.
The impact of progress of variable or how that variable change will influence the examination is imperative

PURCHASING A LUXURY CAR AND
INVESTING THE REMAINING FUNDS
TO MAXIMIZE PROFITS
By
Vinay Kumar Patchipulusu
Sri Krishna Varaprasad Lingamaneni
Sundara Pavan Kumar Raavi
Sri Mounica Musunuru
Venkata Pathi Raju Buddharaju
Prudhvi Ram Attanti
INTRODUCTION
The

Part I
Revenue = Total cost
rQ=FC+vQ
FC=(r-v)Q
Part II
Profit=Revenue-Total cost
P=rQ-(FC+vQ)
p=(r-v)Q-FC
given
r/unit
v/unit
Q(number of units)
given
r/unit
v/unit
Q(number of units)
fixed cost (FC)
Profit (p)/year
$
$
589.00
340.00
9000
Fixed cost (FC)/

Assignment-5
Case study-Financing a House
Question 1: Evaluate plan C and finding the best plan ?
paln c 15 year fixed rate
down payment
remaining amount
origin fee
Appraisal
survey
attorney fee
processing
escrow
other
5%
1%
150000
142,500
142,500
total
T

IndM5240 Research Term Paper
4/13/2015
ANALYSIS OF RISK MANAGEMENT IN BANKING
IN
INDIA
By
Praneeth Reddy Muppidi
A paper submitted for INDM 5240 Engineering Economy
School of Technology
University of Central Missouri
April, 2015
2
TABLE OF CONTENTS
ABSTRA

Analyzing the specifications
When a person goes to buy a car, it becomes difficult for him to choose a car from wide
range of automobile varieties. So most of the people go with comparison of different factors
before finalizing their decision. As per peop

Praneeth Reddy Muppidi
IndM5240 Engineering Economy
Assignment 5
PROBLEMS
Breakeven Analysis for a Project
13.1 A design-to-cost approach to product pricing involves determining the selling price of the
product and then figuring out if it can be made at a

Additional Excel Spreadsheet Exercise #5
Analysis of a Car Loan
by
Dr. Jeffrey Adler, P. E.
MindBox, Inc.
(formerly of Civil Engineering
Rensselaer Polytechnic Institute)
How to use this section:
Each exercise requires the development of an Excel spreadsh

Additional Excel Spreadsheet Exercise #4
More Fun With Engineering Economy Formulas
by
Dr. Jeffrey Adler, P. E.
MindBox, Inc.
(formerly of Civil Engineering
Rensselaer Polytechnic Institute)
How to use this section:
Each exercise requires the development

ANALYSISOFRISKMANAGEMENTINBANKING
IN
INDIA
By
PraneethReddyMuppidi
ApresentationsubmittedforINDM5240EngineeringEconomy
SchoolofTechnology
UniversityofCentralMissouri
April,2015
Introduction:
ThebankingsectorinIndiaisconsideredtobeverycrucialbutit
iscons

Praneeth Reddy Muppidi
IndM5240 Engineering Economy
Assignment 5
4.4) For an interest rate of 1% per 2 months, determine the number of times interest would
be compounded in (a) 2 months, (b) two semiannual periods, and (c) 3 years.
Sol: Interest rate is 1

Praneeth Reddy Muppidi
IndM5240 Engineering Economy
Assignment 7
Risk and sensitivity analysis
Why sensitivity analysis should be considered in engineering economic analysis?
Sensitive analysis measures the impact on project outcomes of changing one or mo