SEEM5740: Assignment 1 (Due Feb. 21th, 2013)
Chapter 2
2-9. Suppose your wealthy uncle has given you a gift of $30,000. You have come up with three
options for spending (or investing) the money. First, youd like to (but not need) a new car to
brighten up

Cost and Revenue Estimation
SEEM5740/ECLT5930
1
Cost and revenue estimation
We need to estimate costs and revenues to develop cash
ows for alternatives for the purpose of design and
selection.
Example: Walmart is considering to open a new store in China.

SEEM 5740A/ECLT 5930A: Engineering Economics
201516 First Term
Homework Set 1
Instructor: Dr. Wong
Due: October 10, 2015
SOLVE THE FOLLOWING PROBLEMS (the numbers refer to those in the 15th edition of
the textbook):
Problem 226 (20pts). The cost of operat

Introduction
SEEM5740/ECLT5930
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Outline
What is engineering economics about?
Principles of engineering economics.
SEEM5740/ECLT5930
2
What is economics
Economics is the study of how people choose to use resources.
American Economic Association
Economics

SEEM5740: Assignment 3 (Due 21:30, Mar. 19th, 2013)
5-9. A new six-speed automatic transmission for automobiles offers an estimated 4%
improvement in fuel economy compared to traditional four-speed transmission in front-wheel
drive cars. If a four-speed t

SEEM5740: Assignment 2 (Due Mar. 7th, 2013)
4-5. How much interest is payable each year on a loan of $2,000 if the interest rate is 10% per
year when half of the loan principle will be repaid as a lump sum at the end of four years and the
other half will

SEEM5740: Sample Solutions for Assignment 3
If you have any question about problem 5-9, 5-10, 5-22, 5-25, 5-44, 5-46, please contact Kairen
Zhang. If you have questions about the rest problems, please contact Tianxing Fang.
5-9. The answer to this problem

SEEM5740: Sample Solutions for Assignment 2
If you have any question about problem 4-5, 4-15, 4-27, 4-31, 4-47, please contact Kairen Zhang.
If you have questions about the rest problems, please contact Tianxing Fang.
4-5. The payment scheme can be summar

SEEM5740: Sample Solutions for Assignment 1
If you have any question about problem 2-9, 2-15, 2-25, 2-36, 2-37, please contact Kairen Zhang.
If you have questions about the rest problems, please contact Tianxing Fang.
2-9. The answers for this question de

Comparison and Selection among Alternatives
SEEM5740/ECLT5930
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We have learned how to evaluate the economic merit of a single
alternative using various measures (PW, AW, FW, IRR, ERR).
We will learn how to use these measures to compare multiple
alternati

Evaluating a Single Project
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A basic question in engineering economy
Given a proposed project, we would like to assess its economic
merit. Usually assessment is done from two perspectives:
Whether the value of revenue exceeds the value

Time Value of Money II
SEEM5740/ECLT5930
1
Future value of a single cash-ow
n
c
t
SEEM5740/ECLT5930
c(1+i)
t+n
2
Present value of a single cash-ow
-n
c(1+i)
t-n
SEEM5740/ECLT5930
c
t
3
A general cash-ow stream
C0
Cn
0
SEEM5740/ECLT5930
C1 C2
1
n
2
4
Futur

Time Value of Money I
SEEM5740/ECLT5930
1
Outline
Cash-ow diagrams
Time value of money
Equivalent future and present value
Future and present value of special cash-ow streams
Annuity
Deferred annuity
Arithmetic gradient
Geometric gradient
SEEM5740/ECLT593

ECLT 5930/SEEM 5740: Engineering Economics
201516 Second Term
Tentative Course Schedule
Instructor: Anthony ManCho So
January 15, 2016
Chapter numbers refer to those in Sullivan, Wicks, and Koelling: Engineering Economy (16th
Edition), Pearson Education L