DATE
March 31
April 2
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'l 9
April 14
" 16
April 21
23
April 28
ll 3 0
May 5
ll '7
May 12
II 1 4
May 19
H 2 1
May 26
H 2 8
June 2
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June 8
Blackboard
ENGR 390: Engineering Economy
Spring 2015 - John Shea
CHAPTER
Course Introduction, Chapter 3 (Ti
ENGR 390: Engineering Economy
Exam 2 Practice Problems Part II
1. The annual income from an apartment complex is $[R]. The annual expense is estimated
to be $[C]. The apartment complex could be sold for $[S] at the end of 10 years. If your
MARR is 10%, ho
ENGR 390 Engineering Economy
Exam 1 Practice Problems
1. The plan is to deposit $20,000 into a saving account that pays 5% compounded annually
for 15 years. In Year 6, you had to withdraw $5,000 for emergency. How much will you
have in your account at the
ENGR 390: Engineering Economy
Exam 3 Review Questions
Part II
1. What is the smallest acceptable annual income from a project which has a $[I] investment cost and
a $[S] salvage value. The life is 15 years and the MARR is 15%?
The question asks an annual
ENGR 390: Engineering Economy
Final Exam Review Questions
1. As reported by the Bureau of Labor Statistics, the CPI for Airfare in 2263 was [A] (using a
base year of 1914 = 100). The CPI for Airfare in 2264 was [B]. Based on this data, what was
the inflat
ENGR 390: Engineering Economy
Exam 3 Practice Problems
Break Even Analysis (Chapter 9 Problems)
60, 64, 70
Depreciation (Chapter 11 Problems)
2, 8a, 10 (a,c) and also do a SL Switch method
Income Taxes and After Tax Analysis (Chapter 12 Problems)
4, 6, 8,
ENGR 390 Engineering Economy
Week 2 Lecture 1
In-Class Problem Solutions
Dr. Saeed Ghanbartehrani
01
Problem: $8,000 loan at rate of 10%. The loan is to
be repaid over 4 years. Find the annual payment.
02
Textbook p. 909
N=4
03
Method 1:
A = 8000 (A/P, 10
SCHOOL OF MECHANICAL, INDUSTRIAL AND
MANUFACTURING ENGINEERING
ENGR 390: Engineering Economy
Date of update: September 21, 2016
Course Name: Engineering Economy
Course Number: ENGR 390
Term Offered: Fall 2016
Credits: 3
Instructor name: Dr. Gana Natarajan
ENGR 390 Engineering
Economy
W5 L1: Loans
1
Loan Terminology
Principal
Amount borrowed
Interest
Charges to use the principal
2
Loan Calculation
What is loan payment amount?
Each payment:
Paying the interest
Paying the principal
What is the payoff amoun
ENGR390:EngineeringEconomy
Uniform Series
Annuity
Annuity:asumofmoneypayableyearly
CashFlowDiagram:
A
A
A
A
A
(P occurs 1 period before first A)
P
A
UniformSeriesEquations
F = A(F/A, i%, n)
A = F(A/F, i%, n)
1 i n -1
F = A
i
i
A = F
n
1 i -1
A
A
A
A
ENGR 390: Engineering Economy
Spring 2015
Homework #2, Due In-Class on Tuesday, 4/14/15
1. A department store has offered you a credit card that charges interest at 1.05% per month,
compounded monthly. What is the nominal annual interest rate (APR) for th
ENGR 390: Engineering Economy
Spring 2015
Homework #3, Due Tuesday, 4/21/15
1. The data for Projects B1 and B2 are shown below. Using an MARR of 12% per year
compounded annually, determine the Present Worth (PW) for each project using the Lowest
Common Mu
ENGR390: Engineering Economy
Name: _
Quiz #1a April 16, 2015
Last 3 digits of your Student ID #: _
The quiz is closed book and open notes. There are three questions of equal weight. Unless otherwise
specified, all answers must have the following:
1) Cash
Chapter 12: Methods of Describing Project Risk
Section 12.2.1. Sensitivity Analysis
Engineering Economics is, of course, more than just analyzing alternatives. It is part of decision
making, i.e. selecting the best course of action from among alternatives
Homework 1: ENGINEERING ECONOMY (ENGR_390_001_S2017)
4/10/17, 9:51 PM
Homework 1
Due Apr 10 at 10pm
Time Limit None
Points 3
Questions 14
Allowed Attempts 3
Available Mar 29 at 8am - Apr 10 at 10pm 13 days
A!empt History
Attempt
Time
Score
KEPT
Attempt 3
ENGR 390: Engineering Economy
Spring 2015
Homework #1, Due In-Class on Tuesday, 4/7/15
1. $5000 is deposited today into an account that pays interest at the rate of 5% per year
compounded annually. What will be the amount in the account in 8 years? (Answe
Question 1 Investment P
Breakeven
Salvage S
Life n
MARR i
(A/P,i,n)
(A/F,i,n)
Min. Annual Income A
94501 USD
8671 USD
15 years
0.15
0.1710 /yr
0.0210 /yr
15979.04 USD
Question
2 Cost C
Parts/Year Max X
Life n
Profit/part P
Annual O&M O
MARR i
(A/P,i,n)
Mi
ENGR 390: Week 4
Practice Problems
Part I
1. AE is considering purchasing a water filtration system to assist in circuit board
manufacturing. The system costs $38,000. It has an expected life of 7 years at which time
its salvage value will be $9,500. Oper