Problem 4.4i
1. Find the current (not sale) price for the following 4 products (you may need to do an
average of your survey prices for each product)
Product
Regular Price March 2000 in
Sacramento
1-Bed Room Apartment (750 sqft)
1-Day Motel 6
Unleaded Gas
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 7 Objectives:
1.
2.
3.
4.
5.
Introduce the concept of bonds
Review my dummys way of solving any problem from Chapter 1 to Chapter 4
Learn the two project screening method
Learn to evaluat
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 8 Objectives:
1. Review the last lecture concerning PW(i, N) criterion
2. Understand the MARR in the context of an investment pool with service or
revenue projects
3. Apply the NPW to scr
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 9 Objectives:
1.
2.
3.
4.
Introduce the AE(i,N) in terms of PW(i, N) for project evaluation
Understand the the Benefits of AE analysis. ? Why do we do it
Apply the AE(i,N) to select alter
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 10 Objectives:
1. Apply the AE(i,N) to screen two mutually exclusive project alternatives with the
same project life
2. Apply the AE(i,N) to screen two mutually exclusive project alternat
ENG 106
Homework #8 Solution
Winter 2015
Problem 12.13
Given: Company considering replacing an existing machine.
Points
For the challenger:
5 AEW for Challenger
Purchase cost, $
31000
30 AEWs for Defender
Economic service life (ESL), years
10
3 ESL for De
Name (please print) Hine Mytee
ENG 106 Engineering Economics
Midterm
Winter 2013
You may use three sheets of hand-written notes. No other reference materials, calculators or other
electronic devices are allowed. State any assumptions, show all your work a
Name (please print) Houpfell E. Kurect
ENG 106 Engineering Economics
Midterm
Winter 2015
You may use three sheets of hand-written notes. No other reference materials, calculators or other
electronic devices are allowed. State any assumptions, show all you
Preview for ENG 106 Final
Scheduled time and date: 10:30-12:30, Saturday, 21 March
Those with last names beginning with A through O will take the exam in 1001 Giedt, while those with names
beginning P through Z will be in 2 Wellman. Please take alternate
Eng 106
Homework #1 Solution
Winter 2015
Problem 1. Youve been asked to analyze the economic feasibility of installing a water storage tank on an apartment
complex, so lower cost water can be stored in May for use during summer months.
a) What might be on
ENG 106
Homework #6 Solution
Problem 10.41
All dollar values in k$
Assumptions for Both Alternatives
Marginal tax rate, %
40%
MARR, %/year
15%
Inflation rate, %/year
0
Winter 2015
Points
40
Buy
20
Lease
2
Which is best
A) Buy Option
Inputs/Assumptions (al
EXAMPLE 5.3
Period
Actual Cash flow
0
-1800
1
454
2
681
3
908
4
908
5
908
6
908
7
1268
BORROWING 1.8 Millions: Accumulative Cash Flow on a yr Basis with a discount
of 15% Per year
Period
0
1
2
3
4
5
6
7
Actual Cash flow
-1800
454
681
908
908
908
908
1268
ENG 106 2nd Midterm Solution Key
Version
Question
A
B
C
1
C
C
D
2
D
C
B
3
D
B
C
4
E
B
D
5
B
C
C
6
A
E
E
7
C
A
D
8
B
C
B
9
A
D
E
10
C
D
C
11
C
E
D
12
B
B
D
13
B
A
E
14
C
C
B
15
E
B
A
16
A
A
C
17
D
B
B
18
B
D
A
19
C
C
C
20
D
B
C
21
C
C
B
22
E
B
B
23
D
Dear ENG 106 Students,
The ENG 106 2nd midterm exam is scheduled for Tuesday Feb. 25th, at 9AM.
You will need to bring a UCD SCANTRON FORM 2000 (blue), available at bookstore, to the exam.
You will also need a #2 pencil for the Scantron form.
Before the e
Midterm #1 version A
Problem 1a: A = 100 + 100(A/G, 8%, 5) Some Table values were accidentally for 2%, not 8%.
Using Table on page 1: A = 100 + 100(A/G, 8%, 5) = 100 + 100(1.9604) = 296.04
Using a Calculator: A = 100 + 100(A/G, 8%, 5) = 100 + 100(1.8465)
PROBLEM 0a: C
PROBLEM 0b: 074 (example choice)
PROBLEM 0c: 142 (example choice)
PROBLEM 1.
This problem has a long-term need (30 years), so use least common multiple lives
giving a 21 year analysis period. Compounding and inflation are in yearly units.
ENG 106 Example Midterm Problems
Note: Exam Version C
NAME _
(Print: Last Name,
First Name)
PROBLEM 0a: Which version of this exam is written in the top left corner of the page?
Version A
Version B
Version C
Version D
PROBLEM 0b: Enter the 3-digit code fr
2/24/14
Comparison of
Alternatives
Types of alternatives
Independent
Selection depends upon its meeting
the minimum requirement for
profitability.
Decision maker can choose any
subset including the null set
Mutually Exclusive (ME)
Only the best mutuall
1
Lecture Summary: Jan. 23, 2017
Confidence interval for 1 :
Assuming normality.
A 100(1 )% confidence interval (c.v.) for 1 is
1 tn2 1
s.e.(1 ),
2
where
s
s.e.(1 ) =
MSE
.
)2
i (xi x
P
For example, a 95% c.v. for 1 is ( = 0.05):
1 tn2 (0.975)s.e.(1 ).
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 1 Objectives:
1. Know the expectations of the course
2. Know why the $ is so important from practical standpoints and communication
stand points
3. Know the practical 4 principles in EE P
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 6 Objectives:
1.
2.
3.
4.
5.
6.
Introduce PPI (Producer Price Index)
Learn to calculate the general Inflation rate using CPI
Learn to calculate Constant $ from give Actual $
Learn to calc
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 5 Objectives:
1. Know how to draw up an loan payment plan, such as stdt loan, auto-loan, CCLoan, hm-loan, etc
2. Lean to perform Debt Management as a debtor, e.g. CC-loan
3. Introduce CPI
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 4 Objectives:
1. Learn to play with the F, P, i, N using an algebraic polynomial for a series of
transactions
(i)
find P for a linear gradient with Aj, i, N
(ii)
find P for a geometric gr
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 3 Objectives:
Learn to play with the F, P, i, N using an algebraic polynomial for a single transaction
(i)
(ii)
(iii)
(iv)
find F with known P, i, N
find P with known F, i, N
find i with
ENGINEERING 106: Engineering Economics, Winter Quarter 2017
Lecture 2 Objectives:
1. Learn the practical applications of the Newtons 2nd Law on EE on interest rate etc
2. Learn to use the Cash-Time diagram to find the $ wrt time
3. Learn to apply the inte