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
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
Solutions to the IE201 Fourth Exam, Fall 2012
Problem 1 (8.21): The manager of Liquid Sleeve. (25 points. Grader: JJ)
Problem 2(8.32): For five projects. (25 points. Grader: JJ)
Problem 3 (9.15): For the value shown. (25 points. Grader: YW)
1/2
Solutions
Problem 1: (How many months must)
i = 6% / 12 = 0.5%
1000(F/P, 0.5%, n) = 2000
1000(1+0.005)^n = 2000
1.005^n = 2
n*log(1.005) = log(2)
n = 138.98 months
PROBLEM 2: (A county engineer)
Type A:
PW=-40000-2000(P/A,10%,10)+5000(P/F,10%,10)
PW=-40000-2000(6.1
IE 201 Financial Engineering
Lecture 32
December 7, 2012
What Is Covered in This Lecture?
Final Exam Material Review
ABET
Course/Instructor Evaluation
A-2
Final Exam Material Review
1.
2.
3.
4.
5.
6.
7.
8.
9.
Study all the sections in Chapters 14, 16,