ECE 472F Problem Set #3 Solutions Fall, 2015
Question 1 Solution
Page 1 of 12
ECE 472F Problem Set #3 Solutions Fall, 2015
Question 2 Solution
Page 2 of 12
ECE 472F Problem Set #3 Solutions Fall, 2015
Question 3 Solution
Page 3 of 12
ECE 472F Problem Set

ECE 472F Problem Set #6 Solutions Fall, 2015
Question 1 (a)
B - Recreation
D - Congestion
D - Pollution
C - Construction
R - Fees
A
B
C
420
55
7
275
40
260
50
5
225
10
590
90
15
440
70
Benefits
Disbenefits
First Line
Second Line
Costs
Fees
Fees
Net Ben.
N

ECE 472F - PROBLEM SET #6 (suggested completion date: December 4th, 2015)
1. The Ministry of Tourism and Recreation is evaluating several proposals to build a recreational area within
a provincial park. An environmental impact study has been completed and

ECE 472S Problem Set #5 Solutions
Spring, 2015
There are three approaches to determining the after-tax present value of a engineering project:
1 - Accounting Statement Approach - Tabular Approach
2 - Net Operating Income Approach - Tabular Approach
3 - "E

1. Well use the terms option A to refer to not taking the degree and option B to taking the
degree. Let N be the number of years remaining in Bobs career (65-45=20), i the discount
rate, i the IRR, jA , jB the diering salary growth rates, and SAt , SBt th

ECE 472F PROBLEM SET # 5 (suggested completion date: November 27th, 2015)
1. The Netronics Corporation is currently subcontracting, from an outside source, the circuit board assembly
and testing of its very popular and profitable line of network switches.

ECE 472F - PROBLEM SET #3 (suggested completion date: October 30th, 2015)
1. The parents of a small child have decided to create an education fund by making equal annual deposits
into a mutual fund of government and corporate bonds. They believe that the

ECE 472F - PROBLEM SET # 4 (suggested completion date: November 13th, 2015)
1.
Back to School
For this problem, ignore taxation. In real life there would be tax credits for tuition paid and progressive taxes
payable on increasing income. You can assume

ECE 472F Problem Set #2 Solutions
Fall, 2015
Question 2 Solution
(a) In the table below, all figures are in millions $.
Company
Total
Assets
GS
938500
860400
17717
199856
L
AAPL
Total
Liabilities
Total
Equity
Revenue
Net
Income
Net
margin
Asset
turnover
7

ECE 472F Engineering Economic Analysis & Entrepreneurship
Problem Sets
Note: Solutions for these problem sets are available on Blackboard. Suggested practice problems from the textbook are listed in the
course outline and should be completed prior to atte

ECE 472F PROBLEM SET #2 (suggested completion date: October 16th, 2015)
Question 1
1.
In late 2012, two recent computer-engineering graduates decided that they wanted to form a
partnership to establish a store to sell IBM-compatible computers. They were i

ECE 472F Problem Set #2 Solutions
Fall, 2015
1
Current assets
Cash
Prepaid rent
Inventory
Total current assets
Computer One
Balance Sheet
January 1, 2013
($Thousands)
Current liabilities
Bank loan
Accounts payable
Total current liabilities
25
50
Long-term

TA Notes Quiz 3 Concepts
Review of Discounting with Inflation
For a nominal interest rate of d%, inflation rate of j%, and a series of endofyearn
nominal cash flows CFn, show that the following are equivalent:
a) The valuation of cash flows in cons

ECE 472 Tutorial Review Questions for Chapter 9a
Question 1 Accounting Statements - Basic
9-1 This is an excellent warm-up accounting question before attempting Problem Set #1 and
Question 2.
Question 2 Accounting Statements More Complex
i. A new "Pizza P

Tutorial Review Questions for Chapter 9b
Manufacturing Balance Sheet
Fundamental Accounting Equation
Assets = Liabilities + Owners Equity
Note if an asset is expected to convert into cash within a year, that asset is recorded
as a current ass

Solutions to the Chapter 9 Suggested Practice Problems
9-1
(a)
K.Z. Moley
Balance Sheet
July 1, 2000
Assets
Current Assets
Cash
Inventory
Total Current Assets
$1 000
$3 000
$4 000
Fixed Assets
Equipment
Total Fixed Assets
Total Assets
$4 000
$4 000
$8 000

This concept review summarizes Capital Cost Allowance (declining-balance depreciation for
Canadian taxation), the Capital Cost Tax Factor, and the Half-Year Rule. It also shows how to
generate book values for taxation (Undepreciated Capital Cost).
The num

Solutions to the Chapter 5 Suggested Practice Problems
After-Tax Engineering Project Analysis
In Chapter 5, as with most of the problems in this course, there are many approaches to
solving the assigned problems. The approaches used in Chapter 5 can be su

Engineering Economics Chapter 5
IRR Method: Perceptions and Misconceptions
Page 1
For the IRR method, instead of calculating the incremental cash flows, one can find the value of i for
which the PVs of the two series are equal. This will give the same res

ECE 472 Tutorial Review Questions for Chapter 4
Question 1 Present Value Project Analysis
4-7
Question 2 Internal Rate of Return Project Analysis
In order to improve air quality, the Ministry of the Environment has tightened the regulations on the
accepta

ECE 472 Tutorial Review Questions for Chapter 3
For the Chapter 3 questions, be sure to draw the cash flow diagrams to help understand the problem.
Question 1 Annuity Valuation Methods
3-16 - Consider the various approaches to the problem as there is more

Solutions to the Chapter 4 Suggested Practice Problems
4-4
Note that the SIR forms the basis for Cost-Benefit Analysis in Public Sector Projects. This will be
covered in Chapter 6. The SIR is optional for the quiz covering Chapter 4.
Alt
1
2
3
4
5
6
7
8
9

Solutions to the Chapter 3 Suggested Practice Problems
3-13
Using i = 8% and n = 3, from Table A.8 in the textbook (A|P 8,3) = 0.3880
Three payments in the amount of X over three time periods and a compound interest rate
of 8% per period correspond to a n

ECE 472 Tutorial Review Questions for Chapter 2b
Question 1 Cost Structures
Textbook question 2-4
This question allows you to explore the relationships between the various costs shown in Figure 2.1
in the textbook. Note the differences between direct, ind

ECE 472 Tutorial Review Questions for Chapter 2a
Question 1 Debt Ratio
The following statement was overheard at the Rotman School of Business:
Investors always demand a higher rate of return for a companys equity than they do
for its debt. Therefore, a co

For use in conjunction with Chapter 2a questions 1 5
What is MARR?
Minimum attractive rate of return
Lowest estimated return a project should produce to be worth pursuing
Accounts for opportunity cost of equity (what could be earned through oth

For use in conjunction with Chapter 2b questions 1 9
Fixed/Variable Costs
Companies often face decisions where they can trade increased fixed cost for
reduced variable cost. What are the risks and benefits of increasing FC and reducing

Solutions to the Chapter 2 Suggested Practice Problems
2-2
(a)
Average Cost
Total Cost
Total Number of Units Produced
TC ( x) $(200 000 0.8 x1.3 ) where x = annual production in m3
Daily Consumption 4 000 m3 per day
Yearly Consumption 4 000 365 1 460 000

This concept review summarizes Capital Cost Allowance (declining-balance depreciation for
Canadian taxation), the Capital Cost Tax Factor, and the Half-Year Rule. It also shows how to
generate book values for taxation (Undepreciated Capital Cost).
The num