Tutorial Class 8
1.
What is the rate of return for the following project? It costs $300,000 to start and
returns $45,000 the first year, with a $5,000 increase each year thereafter. The
project lasts 10 years.
2.
One share of Festival Cruise Line stock in
Tutorial class 5 - Answer
1.
Creekside Engineering will pay $24,000 per year for errors and omissions liability
insurance. What is the present worth of the coverage for 10 years? The interest
rate is 9%.
Answer
PW = -24K * (P/A. 9%, 10) (1+i)
= -24K * 6.4
Tutorial class 4
1.
New Tech has asked three banks for a loan of $15,000. Each bank has its own rate
and compounding interval, but each loan would be paid back by a single, lumpsum payment of principal and interest at the end of 5 years. Which loan has th
Tutorial Class 3- Answer
1.
Mary Tipton is buying an auto that costs $12,000. She will pay $2000
immediately and the remaining $10,000 in four annual end-of-year principal
payments of $2500 each. In addition to the $2500, she must pay 15% interest on
the
Tutorial Class 3a
1.
Perfect Temp is a mechanical engineering design firm that specialized in heating
and cooling systems for factories and warehouses. What is the clients cash flow
diagram for the following costs and savings of an air-to-air heat exchang
Tutorial Class 3a- Answer
1.
Perfect Temp is a mechanical engineering design firm that specialized in heating
and cooling systems for factories and warehouses. What is the clients cash flow
diagram for the following costs and savings of an air-to-air heat
Tutorial Class 3
1.
Mary Tipton is buying an auto that costs $12,000. She will pay $2000
immediately and the remaining $10,000 in four annual end-of-year principal
payments of $2500 each. In addition to the $2500, she must pay 15% interest on
the unpaid b
Tutorial Classes
1.
In which of the following problems do you need engineering economy?
(a) To compare a 4-year and a 5-year car loan.
(b) To decide whether a new or a used car is cheaper.
(c) To decide whether to pay your car insurance quarterly or annua
Tutorial Classes
1.
In which of the following problems do you need engineering economy?
(a) To compare a 4-year and a 5-year car loan.
(b) To decide whether a new or a used car is cheaper.
(c) To decide whether to pay your car insurance quarterly or annua