CHAPTER 02 : Solution to Selected Back of the Chapter
Problems
2.1 Using 12% simple interest per year, how much interest will be owed on a
loan of $500 at the end of two years.
Note that here:
i = 12% = 0.12 per year
P = $500
N = 2 years
Simple interest f
Evaluation of Recruitment process
1.Numberofreceivedapplicationsaccordingtotheusedmethod
2.Numberreceivedapplicationsaccordingtothetimetheprocesslasts
3.Costforeachreceivedapplication
4.Ratioofthenumberofqualifiedapplicantstototalthenumberofapplicants
5.T
Chapter 6
Going International
Globalization
-Technology (Product and Process Technology)
-Cross cultural
-Off Shore
-Exploitation
-Foreign Direct investment
-Competition
Economy of Scale:
Buy more raw materials (more readily available), international may
CHAPTER 03 : Solution to Selected Back of the Chapter
Problems
Single Disbursements or Receipts:
3.3
P = 100
i = 8%
N = 15
Using the formula: F = P(1 + i)N = 100(1 + 0.08)15 = 317.22
Or using the compound interest tables:
F = P(F/P, 8%, 15) = 100(3.1722)
CHAPTER 06 : Solution to Selected Back of the Chapter
Problems
Reasons for Depreciation:
6.4
Since sewing machine technology does not change very quickly nor
does the required functionality, functional loss will probably not be a
major factor in the depre
CHAPTER 05 : Solution to Selected Back of the Chapter
Problems
IRR for Independent Projects:
5.10 (a) 1000 = 200(P/A, i, 7)
(P/A, i, 7) = 5
(P/A, 10%, 7) = 4.8683
(P/A, 9%, 7) = 5.0329
Linear interpolation:
i = 9 + (5 5.0329)/(4.8683 5.0329) = 9.1998
The
CHAPTER 04 : Solution to Selected Back of the Chapter
Problems
4.7
Application of Present Worth criterion using MAAR:
At a MARR of 9%, the present worth of the contract from the first company
is:
P1 = 10,000 * (P/A, 9%, 5) + 20,000 * (P/A, 9%, 10) * (P/F,