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    Engr 305 - HW 2

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    محمد خالد
    Fundamental Fluid Mechanics

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Engr 305 - HW 2

    Uploaded by

    محمد خالد
    10 views2 pages
    Fundamental Fluid Mechanics

    Original Title

    ENGR 305 - HW 2

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Fundamental Fluid Mechanics

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    10 views2 pages

    Engr 305 - HW 2

    Uploaded by

    محمد خالد
    Fundamental Fluid Mechanics

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    ENGR 305 Homework #2

    Show all supporting work in a neat and organized manner. Each question will be graded on effort and
    accuracy based on the rubric posted on D2L. Scores for all questions will be averaged for a final
    homework score out of 5 points. Submit your assignment as a pdf (in a single file) on D2L by the
    posted due date.

    1. A labor-intensive process has a fixed cost of $338,000 and a variable cost of $143 per unit. A capital-
    intensive (automated) process for the same product has a fixed cost of $1,244,000 and a variable cost
    of $92.50 per unit. How many units must be produced and sold at $197 each for the automated
    process to be preferred to the labor-intensive process?

    2. Consider the following breakeven graph for an investment, and answer the following questions.
    a) Give the equation for total revenue for x units per year.
    b) Give the equation for total costs for x units per year.
    c) What is the “breakeven” level of x? Calculate this out, don’t just pull the number from the
    figure.
    d) If you sell 1500 units this year, will you have a profit or loss? How much?
    e) At 1500 units, what are your marginal and average costs?

    3. Explain the difference between simple and compound interest. Which is more common?

    4. A woman borrowed $2000 and agreed to repay it at the end of 3 years, together with 10% simple
    interest per year. How much will she pay at the end of 3 years?

    5. A $5000 loan was to be repaid with 8% simple annual interest. A total of $5350 was actually paid.
    How long had the loan been outstanding?

    6. A company invested $450,000 ten years ago in a new technology that is now worth $1,000,000.
    What rate of interest did the company earn on a simple interest basis?

    1
    ENGR 305 Homework #2

    7. How long will it take for an investment to double at


    a. 4% per year simple interest rate?
    b. 4% per year compounding annually?

    8. A firm has borrowed $5,000,000 for 5 years at 10% per year compound interest. The firm will
    make no payments until the loan is due, at which point it will pay off the interest and principal in
    one lump sum. What is the total payment?

    9. Assume you save 1 penny a day for 50 years, that you deposit it in the bank at the end of each
    month, and that there are 30.5 days per month (you save 30.5 cents each month). How much do
    you have after 50 years if:
    a. The bank does not pay any interest.
    b. The bank pays 2% per month interest. Hint: use an Excel table.

    10. A manufacturing company made an investment 10 years ago that is now worth $1,500,000. How
    much was the initial investment:
    a. At a simple interest rate of 10% per year?
    b. At an interest rate of 10% per year compounding annually?

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