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 when turned over to Kasakstan.
Large Refinery
Lang Factor
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?
Ans:
ia=(1+r/M)M-1=10.38%
F=1000(1+.1038)5+2000(1+.1038)2
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 text are compound rates.
Single Payment Formulas: Cont
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
year and climb by 52000 per year. The ﬁrm’s
MARR is 9%
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 you to statistics, lets look at some real world
stati
LOUISIANA STATE UNIVERSITY
MECHANICAL AND INDUSTRIAL ENGINEERING DEPARTMENT
IE 3201 - PRINCIPLES OF ENGINEERING ECONOMY
Fall 2016
Catalog Description: Principles of Engineering Economy (3). Planning economy studies for decision
making, including considera
LOUISIANA STATE UNIVERSITY
MECHANICAL AND INDUSTRIAL ENGINEERING DEPARTMENT
IE 3201 - PRINCIPLES OF ENGINEERING ECONOMY
Spring 2017
Catalog Description: Principles of Engineering Economy (3). Planning economy studies for decision
making, including conside
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 most 2 will not fire?
P (all 4 fire) =
(94)(30)
(12
4)
=
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, 565, 570.
Find the sample mean, median, and sample varia
SUMMARY
WROBLEMS
B These problems can be sohed by hand. but
" most “ill be sohed much more easily \vith a
spreadsheet.
Problems 425
Since income taxes are part of most problems. no realistic economic analysis can ignore
their consequences. Income taxes ma
P R 0 B l E M S 9-3 For the following cash ﬂows, compute the future
worth.
Future Worth
9-1 Compute the future worth for the following cash 30 30 30 30 30 30
ﬂows. 25
300 20
7
7 .50 IS
-00 '0
ISO 5 r
[00 A
T 0—1~2~3—4—5-6—7—3~9—|0~—-1I
0§l§2\3‘4‘5 I:- '07
400 CHAPTER 11: DEPRECIATION
PROBLEMS
Depreciation Schedules
11-1
11-2
11-3
11-4
11-5
11-6
A depreciable asset costs SI0.000 and has an
estimated salvage value of Sl600 at the end of its
6-year depreciable life. Compute the depreciation
schedule for this
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
SL. DB. and BOYD) are similar to
lass persona! {anagra
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
maturity for a randomly selected bond, is
0,
1
,
4
< 1,
1
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 are
8!
5 !3 !
= 56
2. How many distinct permutations can
IE3201
Dr. Harvey
Summer 2017
Exam I (Closed book, Closed notes except 1 sheet, Open Mind)
Any form of academic dishonesty will be dealt with severely according to the
limits of the code.2
An illustration of how I will award points. This illustration show
Quiz 5
1. Some special handling devices can be obtained for $10,000. At the end of 4 years, they can
be sold for $500. Compute the depreciation schedule for the devices using the following
methods:
i)
Straight-line depreciation
ii)
Sum-of-years'-digits de
Quiz 4
1. You place $4000 into an account paying 9% compounded annually. Inflation is 5% during
each of the next 4 years. What is the account value at the end of the 4 years in Year-0
dollars?
F = $4,000(F/P, 9%, 4) = $4,000(1.412) = $5,648
Year 0 Dollars
Northern Gushers
By Lukas Dretzka
Current Operations
5 years
16 wells in production
20,000 Bbl/day
17% per year decline
New Operations
First production increase 2,000 Bbl/d
Rate will decline 1%
Cost
Drill: 2,000,000
Tie-In: 1,750,000
Recurring cost 7yr: 1