ECE 390 WINTER 2015
PROBLEM SET-2
1. Gail has won a lottery that pays her $100,000 at the end of this year, $110,000 at the end
of the next year, $120,000 the following year, and so on, for 30 years.
Chapter 4 Questions (From ECE390 Text)
10) What is the IRR for a $1000 investment that returns $200 at the end of each of the next
(a) 7 years?
(b) 6 years?
(c) 100 years?
(d) 2 years?
14) Aline has t
Assumptions : 1. P(L2|H2)=P(L2) - The sales on the first and second day are independent & 2. The reprocessed board
Supply &
Demand Day 1
Supply on Day 2
Hh
H
M
Hm
L
M
Hl
L
Mh
H
Mm
M
Ml
L
H
Lh
M
H
Lm
M
ECE 390 WINTER 2015
PROBLEM SET-3
1. Data for two independent investment opportunities are shown below:
Initial cost
Revenues (annual)
Costs (annual)
Scrap value
Service life
Machine A
$ 1,500,000
$ 9
ECE 390 WINTER 2015
PROBLEM SET-1
1. The next table presents the activities to build a small bridge at a site. The table shows
quantities for each activity, the unit of measurement associated to each
ECE390: Fall 2016
Lecture Examples: Engineering Costs, Demand, Supply and Markets
1. DK Transport is considering the profitability of chartering a bus to take people from Waterloo to an
event in Toron
ECE390: Lecture Example
Incremental Benefit-Cost Analysis
1. Consider four alternative projects listed in increasing order of investments. Find out the best
alternative for the investment using B/C an
ECE390 Fall 2016
Lecture Examples: Present Worth, Future Worth, and Annual Worth Analysis
1. A firm is considering two different mechanical devices for installation, to reduce costs. Both devices have
ECE390: Fall 2016
Lecture Examples: Internal Rate of Return
1. Given the net cash flows for three different projects:
Project
0
1
2
3
4
A
-$1000 -$500
$800
$1500
$2000
B
-$1000 $3900
-$5030
$2145
C
$1
ECE390: Fall 2016
Lecture Examples: Interest Rates and Time Value of Money
1. Find the future worth of a principal amount of $500, at 6% interest compounded quarterly, over a
period of 3 years.
Answer
ECE390 Fall 2016
Lecture Examples: Comparison of Projects
1. Consider two investments. The first costs $1 today and returns $2 in one year. The second costs
$1000 and returns $1900 in one year. Which
ECE390: Fall 2016
Lecture Examples: ERR, Approximate ERR and MIRR
1. The Boeing Company has received a NASA contract worth $460 million to build rocket boosters
for future space missions. NASA will pa
ECE 390 WINTER 2015
PROBLEM SET-4
1. A cash flow sequence has a receipt of $10,000 today, followed by a disbursement of
$8,000 at the end of this year and again next year, and then a receipt of $5,500
ECE 390 WINTER 2015
PROBLEM SET-6
1. You are in charge of organizing an alumni reunion next year and have started a WBS that
has five major groupings: food, guests, facilities, reunion event, and supe
ECE 390 Design Lab 3
Problem #1:
A) Most Likely AOA
Figure 1: Most Likely AOA
B) Slack Calculations
Table 1: Most Likely Slack Calculations
Most Likely
Activity
A
B
C
D
E
F (->H)
F (->I)
G
H
I
J
ES
EF
ECE 390 Design Lab 3
Problem #1:
A) Most Likely AOA
Figure 1: Most Likely AOA
B) Slack Calculations
Table 1: Most Likely Slack Calculations
Most Likely
Activity
A
B
C
D
E
F (->H)
F (->I)
G
H
I
J
K
ES
ECE 318 Lab 1
Shashank Sabhlok and Yuhao Deng
Group 15
Data
1b)
1b : A single sinusoid in the frequency domain
2b)
2b :Sum of two sinusoids in the time domain
2c)
2c: Sum of two sinusoids in the frequ
E
|ow_demand(0.2)
medium_demand(0.3)
high_demand(0.5)
M
|ow_demand(0.2)
i
medium_demand(0.3)
high_demand(0.5)
M
|ow_demand(0.2)
i
medium_demand(0.3)
high_demand(0.5)
M
|ow_demand(0.2)
medium_demand(0.
ECE 390 WINTER 2015
PROBLEM SET-8
1. Regional Express is a small courier service. By introducing a new computerized tracking
device, it anticipates some increase in revenue, currently estimated at $2.
ECE 390 WINTER 2015
PROBLEM SET-7 SOLUTION
1. A=Annual Savings
i= interest rate
The total savings are defined as follows:
= ( , , ) =
(1 + ) 1
For each case, we need to solve for N (the number of ye
ECE 390 WINTER 2015
PROBLEM SET-8 SOLUTION
1. The expected value of the revenues per parcel is calculated as the summation of the
multiplications between the possible revenues per parcel and their cor
ECE 390 WINTER 2015
PROBLEM SET-7
1. The Kelowna Go-Kart Klub has decided to build a clubhouse and track several years
from now. The club needs to accumulate $50,000 by setting aside a uniform amount
ECE 390 WINTER 2015
PROBLEM SET-5
1. Charlie has a project for which he had determined a present worth of $56,740. He now
has to calculate the IRR for the project, but unfortunately he has lost comple
ECE 390 WINTER 2015
PROBLEM SET-4 SOLUTION
1. MARR=6%
a) Exact ERR
Reinvest 10,000 at 6% for one year and calculate net flow at year 1
1 = 10000 (1 + 0.06) 8000 = 2600
Since flow is positive, reinves
ECE390 Fall 2016
Lecture Examples: Payback Period, Benefit Cost Analysis
1. The first cost of a project is $10,000. The project accrues an annual savings of $2,000. Find the
simple payback and discoun