Quize chapter5
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This document appears to be a quiz from an Engineering Economy course asking the student to draw a cash flow diagram and calculate financial metrics for a scenario where a small company was purchased for $23,000, lost $1,200 per year for the first 4 years, had $8,000 invested in the 4th year, and then profited $5,500 per year for years 5 through 15 before being sold for $33,000. The student is asked to show the equations to calculate the internal rate of return, future worth at a 12% interest rate, and equivalent annual rate of return when the minimum attractive rate of return is 12%.
Quize chapter5
- 1. Jordan University of Science and Technology Faculty of Engineering Industrial Engineering Department IE 341: Engineering economy First Semester 2011/2012 Name :. Quiz Eng. Maysaa Faroon .. : #NO Q1: a small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the 4th year will result in a profit of $5,500 each year from the 5th year to the 15th year. At the end of 15th year the company can be soled for $33,000.Drow the cash flow diagram then write down the equation of 1. IRR Write the equations only 2. FW(MARR =12) 3. ERR when 竜 = 12%