Fall 2013
Engineering Economy
Homework #3
Problem 1:
A bond with a nominal face value of $1000 pays interest of 10% per year. This bond will be redeemed at
this face value at the end of its 20-year. The first annual interest payment is due at the end of f
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FALL 2013
Engineering Economy
Homework #4
1) A bond has a $2,000 face value. It pays an annual interest of 4% on its nominal value in two equal
semi-annual installments. It is redeemable at its face value in 8 years.
a) If prevailing interest rates are 6
Fall 2013
Engineering Economy
Homework #6
Question #1
At the beginning of 2000, company X has $1,200,000 in cash in the bank. It owes $400,000 in
accounts payable and is owed $200,000 in accounts receivable.
1.
What is the balance sheet (i.e. what are the
Engineering Economy
Fall 2013
October 2, 2013
EXAM 1
(All problems carry equal points)
Name ' " - Last4ofSSN
Last First
Problem 1:
A Company produces and sells cell-phones, and thus far has been able to control the volume of
the product by varying the s
Fall 2013
Engineering Economy
Homework #5
Problem 1:
An investment of $100,000 on machinery makes profits from a plant by $18,000 per year for a period of 8
years. After the 8th year, the production is terminated and the piece of equipment has $25,000 sal
Fall 2013
REVIEW HOMEWORK
Q1.
A company has determined that the price and the monthly demand of one of its products are related by the
equation:
p=400 2*D
Where p is the price per unit in dollars and D is the monthly demand. The associated fixed costs are
Fall 2013
Engineering Economy
Homework #3
Problem 1:
A bond with a nominal face value of $1000 pays interest of 10% per year. This bond will be
redeemed at this face value at the end of its 20-year. The first annual interest payment is due at
the end of f