Solutions to the IE201 Third Exam, Fall 2012
Problem 1: Consider an investment project. (30 points. Grader: YW)
A = $500
G = -$100
i=12%
AW 4 = A + G(A/G,12%,4)
= 500 - 100(1.3589)
= $364;
CC = AW 4 /i = 364/12% = $3,033
Problem 2: Consider the cash flows
Solutions to the IE201 First Exam, Fall 2012
Problem1 (25 points. Grader: RA)
A $50, i 0.5%, n1 20, n2 10
F1 A( F / A, 0.5%, 20) $1,048.96
F2 F1 ( F / P, 0.5%, 10) $1,102.60
$1,102.60 will be in the account at the end of the 30-month period.
Problem2 (40
3.1 Industrial Electric Services has a contract with the U.S. Embassy in
Mexico to provide maintenance for scanners and other devices in the
building. If the first payment of $12,000 is received now, what is the
present worth of the contract, provided the
IE 201 Exam 3 Solutions
Spring 2017
Problem 1 V1
What is the present worth of project X with the following attributes?
- $50,000 initial cost
- Interest rate of 8% per year
- Quarterly compounding
- Life of 15 years
- Revenue of $500 per s
Name:
IE 201 Second Exam
Fall 2015
Problem 1 (25 points):
Compare the mutually exclusive alternatives shown below on the basis of their capitalized costs
using an interest rate of 9% per year and choose the best alternative.
Machine X
-15,000
-4,500
3,500
Name:
IE 201 Second Exam
Fall 2015
Problem 1 (25 points):
The purchase price of a manufacturing machine is $80K, with $65K is paid now and the
remaining $15K is paid at the end of year 3.Compute the Capital Recovery (CR) value for this
machine, (i=10% per
Name:
IE 201 Second Exam
Fall 2015
Problem 1 (30 points):
Year
0
1
2
3
NCF, $
9,000
-700
-13,000
2,900
For the above net cash flow of a products development process, given interest rate i i=12% and
MARR=9%, determine the ROIC rate i and decide whether thi
Name:
IE 201 Second Exam
Fall 2015
Problem 1 (20 points):
Financial Company CCC has made two different loan offers.
Offer 1: interest of 20% per year compounded quarterly
Offer 2: interest of 6% per quarter compounded monthly
What are the nominal and effe
Homework #2
IE 201
Due Wednesday February 1, 2017
Please submit your homework assignments through BlackBoard as a Word document or PDF.
No hard copies will be accepted and no emails will be accepted.
1. Ch
IE201- Sample Test (time is 30 minutes for this test)
Problem 1: (50 points)
You plan to save up for a sport car after 18 years using Strategy 1, and your father is trying to
save money for a family vacation after 18 years using Strategy 2. Assuming no wi
IE 201 Financial Engineering
Summer 2011
Homework 2 Solutions
Problem 3.8
A= 4,000 + 1,000(F/A, 10%, 4)(A/F, 10%, 7)
= 4,000 + 1,000(4.6410)(0.10541)
= $4,489.21
Problem 3.26
In this problem, the description last 5 years seems ambiguous. So if this means
IE 201 Financial Engineering
Summer 2011
Midterm Exam Solutions
Problem 1: (15 points)
(a)
2,000,000 = 25,000(F/P, 10%, 20) + A(F/A, 10%, 20)
2,000,000 = 25,000(6.7275) + A(57.2750)
A = $31,983 per year
(b)
Yes. In fact, they will exceed their goal by $45
IE 201 Financial Engineering
Summer 2011
Selected problems in Chapter 8
Problem 8.9
Tuggle, Inc., which manufactures rigid shaft couplings, has $600,000 to invest. The company is
considering three different projects that will yield the following rates of
IE201 Second Exam
Spring 2017
V1-Problem 1
You opened a savings account today, and deposited $100,000 to that account. The interest rate is 7% per year.
Your goal is to have at least $500,000 in your bank ac
IE201- Spring 2017
Homework 1- Due 1/18/2017, before 10:50AM
You must submit your HW by the deadline. Late submissions are NOT graded. Only Blackboard
submissions are accepted (no hard copy or email). If you do not k