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    Tamer Mohamed
    This document contains a 7 question assignment for an engineering economics course. The questions cover topics such as: 1) Situations where engineering economics would be important like buying new equipment. 2) Uncertainties companies should consider for new technologies like sensitivity analysis. 3) Using a spreadsheet to calculate how long it takes a deposit to double at different interest rates and compounding periods. 4) Calculating present and future values of investments compounded at different rates. 5) Calculating how much a student needs to save weekly over 3 years to reach a savings goal. 6) Using a geometric growth factor to calculate the selling price of a business. 7) Calculating the value of lottery tickets that pay escalating prizes over 20 years

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    Ass. 1

    Uploaded by

    Tamer Mohamed
    15 views2 pages
    This document contains a 7 question assignment for an engineering economics course. The questions cover topics such as: 1) Situations where engineering economics would be important like buying new equipment. 2) Uncertainties companies should consider for new technologies like sensitivity analysis. 3) Using a spreadsheet to calculate how long it takes a deposit to double at different interest rates and compounding periods. 4) Calculating present and future values of investments compounded at different rates. 5) Calculating how much a student needs to save weekly over 3 years to reach a savings goal. 6) Using a geometric growth factor to calculate the selling price of a business. 7) Calculating the value of lottery tickets that pay escalating prizes over 20 years

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    This document contains a 7 question assignment for an engineering economics course. The questions cover topics such as: 1) Situations where engineering economics would be important like buying new equipment. 2) Uncertainties companies should consider for new technologies like sensitivity analysis. 3) Using a spreadsheet to calculate how long it takes a deposit to double at different interest rates and compounding periods. 4) Calculating present and future values of investments compounded at different rates. 5) Calculating how much a student needs to save weekly over 3 years to reach a savings goal. 6) Using a geometric growth factor to calculate the selling price of a business. 7) Calculating the value of lottery tickets that pay escalating prizes over 20 years

    Copyright:

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

    Ass. 1

    Uploaded by

    Tamer Mohamed
    This document contains a 7 question assignment for an engineering economics course. The questions cover topics such as: 1) Situations where engineering economics would be important like buying new equipment. 2) Uncertainties companies should consider for new technologies like sensitivity analysis. 3) Using a spreadsheet to calculate how long it takes a deposit to double at different interest rates and compounding periods. 4) Calculating present and future values of investments compounded at different rates. 5) Calculating how much a student needs to save weekly over 3 years to reach a savings goal. 6) Using a geometric growth factor to calculate the selling price of a business. 7) Calculating the value of lottery tickets that pay escalating prizes over 20 years

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    © All Rights Reserved
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    of 2

    Faculty of Engineering

    Chemical Engineering Department

    Engineering Economics- [ENGG04I02]

    Assignment [1]

    1- In which of the following situations would engineering economics


    analysis play a strong role, and why?
    a. Buying a new equipment
    b. Changing design specifications for a product
    c. Deciding on the paint color for the factory floor
    d. Deciding which invoice forms to use

    2- Telecom Company is considering the development of a new type of cell


    phone based on a brand new, emerging technology. If successful, Telecom
    will be able to offer a cell phone that works over long distances and even in
    mountains areas. Before proceeding with the project, however, what
    uncertainties associated with the new technology should they be aware of?
    Can sensitivity analysis help address these uncertainties?

    3- Use a spreadsheet to determine how long it will take for a £100 deposit
    to double in value for each of the following interest rates and compounding
    periods. For each, plot the size of the deposit over time, for as many periods as
    necessary for the original sum to double.
    a. 8% per year, compounded monthly
    b. 11 % per year, compounded semiannually
    c. 12% per year, compounded continuously

    4- Clifford has X Euros right now. In 5 years, X will be £3500 if it is


    invested at 7.5%, compounded annually. Determine the present value of X. If
    Clifford invested X Euros at 7.5%, compounded daily, how much would the
    value of X be in 10 years?

    Page 1
    Faculty of Engineering
    Chemical Engineering Department

    5- Rinku has just finished her first year of university. She wants to tour
    Europe when she graduates in three years. By having a part-time job through
    the school year and a summer job during die summer, she plans to make
    regular weekly deposits into a savings account, which bears 18% interest,
    compounded monthly.
    a. If Rinku deposits £15 per week, how much will she save in three
    years? How about £20 per week?
    b. Find out exactly how much Rinku needs to deposit every week if
    she wants to save £5000 in three years.

    6- Ruby's business has been growing quickly over the past few years, with
    sales increasing at about 50% per year. She has been approached by a buyer
    for the business. She has decided she will sell it for 1/2 of the value of the
    estimated sales for the next five years. This year she will sell products worth
    £1,456,988. Use the geometric gradient factor to calculate her selling price for
    an interest rate of 5%.

    7- A UK lottery prize pays £1000 at the end of the first year, £2000 the
    second, £3000 the third, and so on for 20 years. If there is only one prize in
    the lottery, 10 000 tickets are sold, and you could invest your money
    elsewhere at 15% interest, how much is each ticket worth, on average?

      

    Page 2

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