ENGINEERING ECONOMY

Question 1 (1 point

If you deposit 1 ,000 one year from now and are promised payments of 500 three years from now and 1 ,500 five years from now , the equation that will yield the correct rate of return is

Answer Choices

a . -1000 (F /P , i , 1 500 (P /F ,i ,3 1500 (P /F ,i ,5

b . 0 -1000 (F /P , i , 1 500 (P /F ,i ,3 1500 (P /F ,i ,5

c . 0 -1000 (P /F , i , 1 500 (P /F ,i ,3 1500 (P /F ,i ,5 p

d . 1000 (F /P , i , 1 500 (P /F ,i ,3 1500 (P /F ,i ,5

Answer : D

Question 2 (1 point

According to Descartes rule of signs , how many possible rates of return values are there for the following cash flows ? Year Cash flow 1 -10 ,000 2 -5 ,000 3 50 ,000 4 50 ,000 5 0 .0 6 -5 ,000 7 -5 ,000

Answer Choices

a . 1

b . 2

c . 3

d . 4

Answer : A

Question 3 (1 point

Alternative A has a first cost of 10 ,000 , an annual operating cost of 5 ,000 that increases 500 each year and a salvage value of 2 ,000 Alternative B has an initial cost of 25 ,000 , an annual operating cost of 1 ,000 that increases 1000 each year and a salvage value of 12 ,000 If both alternatives have a five-year life , the equation that will yield the rate of return on the incremental...