Division of Engineering
Dr. P. Kalim EGM 320 Chapter 1
Note all materials, examples and problems are taken from Contemporary Engineering Economics- 3rd Ed. By: Chan S. Park
The learning objectives of this lecture is to understand the n
Maintenance expenditures for a structure with a twenty-year life will come as periodic outlays of $1,000 at the end of the fifth year, $2,000 at the end of the tenth year, and $3,500 at the end of the fifteenth year. With interest at 10%, what is
EGM 320- Spring 2008 Quiz # 2 Solutions
There are a number of ways you can solve some of these problems
Note: You can use Excel workbook to calculate factors such as (P/F) and (P/A) etc.
E P = 5400(P/F,5%,6) = 5400*0.7462 = $4029
6 7 8 4 Years
Solutions Quiz 1 Spring 08 EGM 320 - Chapter 1 and 2. Extracted from Chan S. Park solutions The following are the best response.
1. 2. 3. 4. 5. 6. 7. 8.
D C D E E D D A
REC/(1800/360) = 30 REC =150 Current Assets=Cash + Inv + Rec = 550 BV=Equity/
Solution EGM 320 - Quiz # 5 Spring 2008 Solution 1) Interest tables in Appendix are based on time periods that may be annually, quarterly, monthly, so on. Because we have no 1.375% tables (or 16.5% tables), the effective interest rate equation mus
Solution Quiz # 4 Spring 2008 Note that C = # of Compounding/payment K = # of Payments/yr, M = Total Compounding/yr The effective interest rate i = (1+ r/M)C-1 (1) The cash flow 1 can be evaluated as P1= -10,000 + 5000(P/A,10%,4) = 5850 This must be
Quiz #3 - EGM 320 Solutions - Sections A & B - Spring 2008 The following are the best response
Days Sales Outstanding = 30 (receivable are collected in 30 days) 30 = Receivables/Avg. Sales per day = REC/(1800/360)
Receivables = 150 Curren
The solution for problem 5.14 is not correct. Replace the 15% interest rate term in the first case by 24% and 23% for the second case. I did not work it out whether this will change your answer. Please work it out.
Division of Engineering
Dr. P. Kalim EGM 320 Chapter 2
The learning objectives of this lecture is to understand the company's financial statements, and from it determine it's fiscal health using various financial ratios. The primary p
Wilkes University -Division of Engineering and Physics
ENGINEERING PROJECT ANALYSIS EGM 320- ONLINE COURSE
HOMEWORK, QUIZ, AND EXAM SCHEDULE - SPRING 2008
Contemporary Engineering Economics, Chan S. Park, Addison Wesley, 4th Edition 2004