IE 5304: Advanced Engineering Economy
Case Grading Rubric
Criterion
Sufficiency of
Information
Arrangement
&
Completenes
s of Data
Clarity of
Analysis
Graphics
Block
Discussion &
Conclusions
Block
Overall
Exemplary
(20)
All required
information is
include
EOY
0
1
2
3
4
5
6
7
8
9
Alt 1
$12,500.0
0
$-
Alt II
Alt III
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$2,000.00
$22,000.0
10
$2,000.00
0
Present Worth at Different Interest Values
Interest
Alt 1
Alt II
Alt III
$20,000
Proceedings of the 1998 Winter Simulation Conference
D.J. Medeiros, E.F. Watson, J.S. Carson and M.S. Manivannan, eds.
INTRODUCTION TO THE ART AND SCIENCE
OF SIMULATION
Robert E. Shannon
Industrial Engineering
Texas A&M University
College Station, Texas 7
Quality Systems
Module 3: The Tools of SPC
Copyright 2014 D. H. Liles as to the class syllabus and all lectures and
materials. Students are prohibited from selling (or being paid for taking) notes
during this course to or by any person or commercial firm
Quality Systems
Module 3: Six Sigma Concepts
Copyright 2014 D. H. Liles as to the class syllabus and all lectures and
materials. Students are prohibited from selling (or being paid for taking) notes
during this course to or by any person or commercial fir
TAXES
Chapter 10
Objectives
Explain the difference between cash flow and net income.
Given data on a companys revenue and expenses, along
with depreciation, calculate the taxes for the year.
Given data on a companys revenue and expenses, along
with dep
IE 5304 Fall 2016
Problem Working Session
10/31/16
Chapter 4 - Review
Important Concepts:
1. Decision Criteria
2. Planning Horizon
a. Shortest Life (Salvage Value Could be Affected)
b. Longest Life (Salvage Value Could be Affected)
c. Least Common Multipl
Item
Initial Investment
Annual Operation Costs
Annual Maintenance Costs
Annual Revenue from Sales
Salvage Value
Annual Taxes
Duration, n
LCML = 168
Alt L
20,000
$3,000 per year
$1500 per year
$14,000 per year
16.7% x t x Initial Investment
15% of Net
6
Al
Example Problems
Chapters 5, 6, 7, & 8
Chapter 5 Example Problems
5.5 Ivan, an industrial engineering student is working on a homework problem
For his Engineering Economy class. He needs to calculate the PW at 12 percent of
a cash flow series with $1,000
CSE 5304
Problem Working Session
Problem: Chapter 2, Problem 15
A sum of $1000 is borrowed today. The loan is paid off with interest at
the end of 3 years with no payments made in between. Calculate the
total interest paid using:
a. Simple interest of 8 p
Advanced Engineering Economy
IE 5304
Nominal & Effective Interest Rate Exercise Sheet
Name: _
ID #: _
Instructions: Work all the problems below showing all work and formulas used.
The intent of this exercise is to ensure the student gains a fundamental
un
Chapter 9 - Depreciation
Example Problems
FE-Like Problem 10
The depreciation deduction for year 11 of an asset with a 20-year useful life is
$4000. If the assets salvage value was estimated to be zero and straight-line
depreciation was used to calculate
Work Sheet #1
This work sheet is not a Graded
Assignment
(It is for practice and skill development)
Present Worth Work Sheet
Instructions: Work each problem showing all work. The intent here is
to develop your recognition of patterns and be able to write
Work Sheet #1
This work sheet is not a Graded
Assignment
(It is for practice and skill development)
Present Worth Work Sheet
Instructions: Work each problem showing all work. The intent here is
to develop your recognition of patterns and be able to write
Incremental PW Analysis - Example
Alternative 1
MARR = 7%
Approach
Annual Revenue = 20,000
Alternative 2
O&M = 16,000
Taxes = 34%
n=3
P = 15,000
S = 12,000
* Note: Salvage Value Not Taxable
* All Alternatives may be repurchased
Annual Revenue =
0&M =
Taxe
Advanced Engineering Economy
IE 5304
Nominal & Effective Interest Rate Exercise Sheet
Name: _Key_
ID #: _
Instructions: Work all the problems below showing all work and formulas used.
The intent of this exercise is to ensure the student gains a fundamenta
SOFTWARE INTEGRATION PROCESS
Samsung Galaxy Note 7
Overview
This section will analyze a problem that was associated to the software integration process
during the manufacturing of the Samsung Galaxy Note 7. The software integration is one of the
last step
DIRECT TIME STUDY PROJECT
DIRECT TIME STUDY
1) STUDY GOAL SETTING
Project:
This project is based on time and motion study working upon Vinyl cutter.
What is Direct Time and Motion Study?
Direct Time and Motion study is define as to observe and record a pr
PROBLEM 8.4
a
b
ONE SIGN CHANGE, THEREFORE, ONE POSITIVE REAL ROOT
EOY
0
1
2
3
4
5
6
CF
CUM CF
-$100.00 -$100.00
$25.00
-$75.00
$25.00
-$50.00
$25.00
-$25.00
$25.00
$0.00
$25.00
$25.00
$25.00
$50.00
ONE SIGN CHANGE, THEREFORE, UNIQUE POSITIVE REAL ROOT
c
PROBLEM 6.4
a
A = $2,000,000(A|F 10.4%,40) = 2000000(0.00203) = $4,060
USING EXCEL'S PMT FUNCTION
A=
$4,052.10 =PMT(10.4%,40,-2000000)
b
A = $2,000,000(P|F 10.4%,1)(A|F 10.4%,40) = 2000000(0.90580)(0.00203) = $3,677.55
USING EXCEL FUNCTIONS
A = NPV(10.4%,
PROBLEM 5.4
BEFORE TAX COST OF CAPITAL = (PROPORTION DEBT)*(BT COST OF DEBT)
+ (PROPORTION EQUITY)*(COST OF EQUITY)
AFTER TAX COST OF CAPITAL = (PROPORTION DEBT)*(BT COST OF DEBT)*(1-TAX RATE)
+ (PROPORTION EQUITY)*(COST OF EQUITY)
a
b
c
d
e
% DEBT
BEFORE
A
1 PROBLEM 9.4
2
3
a
4
b
5
c
6
d
7
e
8
f
9
g
10
h
11
i
12
13
14
15
16
17
18
19
20
21
22
B
WHAT
MELT INDEXER IN RESEARCH LAB
COMPUTER FOR PERSONAL USE
PLOT OF LAND FOR PRODUCTION OF INCOME
FILE CABINET IN BUSINESS OFFICE
RESTAURANT FRANCHISE
COMMERCIAL DE
Name: Nirmit Shah
Student ID: 1001231811
Class Section: IE5304 (001)
Title: Case Study #2
Date: 10/10/2015
Introduction
In the given case, a job of $60,000 per year is given. Promotion is given every five years and
during the fifth year, average merit inc