The document provides the details of a midterm exam for an Engineering Economy and Investments course, including 3 questions covering topics like calculating an annual interest rate from loan repayment amounts, performing an annual cost analysis to determine the most economical choice between two machine options, and calculating the present value of an apartment purchased via installment payments with an interest rate of 15%. Useful formulas are also provided for calculations involving single payments, uniform series payments, arithmetic gradient series payments, and geometric payments series.
The document provides the details of a midterm exam for an Engineering Economy and Investments course, including 3 questions covering topics like calculating an annual interest rate from loan repayment amounts, performing an annual cost analysis to determine the most economical choice between two machine options, and calculating the present value of an apartment purchased via installment payments with an interest rate of 15%. Useful formulas are also provided for calculations involving single payments, uniform series payments, arithmetic gradient series payments, and geometric payments series.
The document provides the details of a midterm exam for an Engineering Economy and Investments course, including 3 questions covering topics like calculating an annual interest rate from loan repayment amounts, performing an annual cost analysis to determine the most economical choice between two machine options, and calculating the present value of an apartment purchased via installment payments with an interest rate of 15%. Useful formulas are also provided for calculations involving single payments, uniform series payments, arithmetic gradient series payments, and geometric payments series.
The document provides the details of a midterm exam for an Engineering Economy and Investments course, including 3 questions covering topics like calculating an annual interest rate from loan repayment amounts, performing an annual cost analysis to determine the most economical choice between two machine options, and calculating the present value of an apartment purchased via installment payments with an interest rate of 15%. Useful formulas are also provided for calculations involving single payments, uniform series payments, arithmetic gradient series payments, and geometric payments series.
Semester: Spring 2021 Exam Date: 09/05/2021 Exam Time 01:00 H.
Engineering Economy and Investments (EPM 119)
The Exam Consists of Three Questions in One Page Total Marks: 20 Marks Question 1 (6 Marks) A businessman got 1000000 LE loan from a bank. He paid back the loan as follows 5 equal annual payments each 200000 for the first 5 years then 3 equal annually payments each 150000 LE for the following 3 years. Determine the annual interest rate i. Question 2 (8 Marks) A company needs a printing machine and it has two offers. The first is Machine-A that costs $ 6000 and Annual Operating Cost (AOC) is $ 800 first year and increases by $ 100 annually. The lifetime is 6 years. The salvage value of machine-A after its lifetime is $ 400. Machine-B Costs $ 7000 and AOC is $ 500 for the first 3 years then AOC increases by 12 % annually. The lifetime of Machine-B is 8 years and its salvage value is $ 600. Using the annual cost analysis, determine the optimum economical choice. Assume 12 % interest rate. Question: 3 (6 Marks) One person bought an apartment by installment as follows: LE 100000 down payment. At the end of the third year, he pays LE 20000. After this payment, he pays “12” payments LE 21000, LE 22000, LE 23000, .........., LE 32000. The difference between two successive payments is 3 months. If the interest rate is 15 %, find the present value of this apartment.
USEFUL FORMULAE 1. Single payment P = F / (1 +i)N 1 + i Period 2 = (1 + i Period 1 )Period 2 / Period 1
2. Series uniform payments 3. Arithmetic Gradient Series
−N −N −N 1 − (1 + i ) 1 − (1 + i ) G 1 − (1 + i ) N P=A{ } P=A{ } + ( ){[ ]−( N ) } i i i i (1 + i ) 4.Geometric payments series 1+ g N 1− ( ) P = A{ 1+ i } (i ≠ g), P=N[ A ] (i = g) i−g (1 + i ) Good Luck Examination Committee: Dr. Khaled Abdel Aty Mohamed
Anoop Desai (Author) - Aashi Mital (Author) - Production Economics - Evaluating Costs of Operations in Manufacturing and Service Industries (2018, CRC Press) (10.1201 - 9780429487040) - Libgen - Li
Anoop Desai (Author) - Aashi Mital (Author) - Production Economics - Evaluating Costs of Operations in Manufacturing and Service Industries (2018, CRC Press) (10.1201 - 9780429487040) - Libgen - Li
