Wildcat Oil in Kasakstan
Discovery of 500M Bbl of oil-> Recovery of 300M Bbl = 100M Bbl Wildcat + 200M Kasakstan Government
Production = Constant during 100M of Wildcat, then follows decline curve whe
IE3201 Engineering Economics
Pretest 2- fall 2012
1
If one invests $1,000 now and $2,000 three years from now at an interest rate 10% compounded quarterly, what
will be the total amount in 5 years?
An
Problems _ 97
This chapter also deﬁned simple interest. where interest does not carry over and become
part of the principal in subsequent periods. Unless otherwise speciﬁed, all interest rates in
this
Quiz 3
1. A firm has installed a manufacturing line for packing materials. The firm plans to produce
50 tons of packing peanuts at $5000 per ton annually for 5 years, and then 80 tons of
packing peanu
Quiz 5
1. Some special handling devices can be obtained for $12,000. At the end of 4 years, they
can be sold for $600. Compute the depreciation schedule for the devices using the
following methods:
i)
Problems 467
Challenger Min EUAC
13-10
13-11
13-12
13-13
A machine has a ﬁrst cost of 550.000. Its mar~
ket value declines by 20% annually. The oper~
ating and maintenance costs start at $3500 per
2E: CHAPTER 8: CHOOSING_THE BEST ALTERNATIVE
14.52% I Interest rate ‘
Altemative_ Cost Life f EUAC
Good ,' 600000 6 F 156,503
' = —PMT($A51.C3,B3)
' 800000 ‘j 10 . 156,503
.=D3—D4
; ‘ diff
IE 3201 HW1
2.3 Compare the interest earned on $15,000 for 25 years at 7% simple interest with
the amount of interest earned if interest were compounded annually.
= $15,000 = 25 = 7%
:
=
= 0.7 15
P R 0 B L E M 5
Rate of Return
7-1 Compute the rate of return for the following cash
flow to within l/gf/r.
Year Cash Flow
0 —$l00
[—10 +27
(Answer: 23.9%)
7-2 The Diagonal Stamp Company, which sells
PROBLEMS
Annual Calculations
5-1 Compute the EUAB for these cash ﬂows based on a
10‘}? interest rate.
60
Hunter: EUAB: $35.72)
Compute the EUAC for these cash Flows.
0~1——2§3—4‘s
l .~= m. l
m0
LOUISIANA STATE UNIVERSITY
MECHANICAL AND INDUSTRIAL ENGINEERING DEPARTMENT
IE 3201 - PRINCIPLES OF ENGINEERING ECONOMY
Fall 2016
Catalog Description: Principles of Engineering Economy (3). Planning e
LOUISIANA STATE UNIVERSITY
MECHANICAL AND INDUSTRIAL ENGINEERING DEPARTMENT
IE 3201 - PRINCIPLES OF ENGINEERING ECONOMY
Spring 2017
Catalog Description: Principles of Engineering Economy (3). Planning
11-5
The computations for the first three methods (
Problem 11-4.
(d) Aooelarated 0091 Recovery System IMAGES)
Read the a- n-roriate rcenta = s from the 7-year 0
Year Percent-199 Year Paroanta-e_
3.93
Quiz 4 Solution
1. An investment firm offers its customers municipal bonds that mature after varying numbers
of years. Given that the cumulative distribution function of T, the number of years to
matu
Quiz 3 Solution
1. Eight players can fill a 5 person team (assuming each player can play any position) on a
basketball team. How many ways could any group of 5 players be assigned to the team?
There a
Quiz 1 Solution
1. A tire manufacturer wants to determine the inner diameter of a certain grade of tire. Ideally,
the diameter would be 570 mm. The data are as follows:
572, 572, 573, 568, 569, 575, 5
Quiz 5 Solution
1) From a lot of 12 missiles, 4 are selected at random and fired. If the lot contains 3 defective
missiles that will not fire, what is the probability that
I) all 4 will fire?
II) At m
How are Statistics used and affect our
decisions?
Sometimes you watch the news and hear statistics thrown at you?
One has to question whether these statistics tell the whole story?
So to introduce