Nội dung text MSTE 26 Solutions.pdf
26 Engineering Economy: Miscellaneous Topics 1 Solutions ▣ 1. You borrowed Php 7,000 from a friend and agreed to pay Php 7,700 in one year and four months. What is the simple discount rate? [SOLUTION] F = P(1 + rt) 7 700 = 7 000 (1 + 12 + 4 12 r) r = 0.075 d = r 1 + r d = 0.075 1 + 0.075 d = 6.98% ▣ 2. You deposited Php 10,000 to an investment with a 12% interest per year. If the inflation rate is 3% per year, how much profit do you expect at the end of five years? [SOLUTION] p = 10 000 ( 1 + 0.12 1 + 0.03) 5 − 10 000 p = Php 5 202.11 ▣ 3. A company sells smartphones at Php 6,000 each. If the company has fixed costs of Php 5,000,000 per year and each smartphone costs Php 2,000 to make, how many smartphones do they need to sell per year to break-even? [SOLUTION] 6000n = 2000n + 5000000 n = 1250 SITUATION 1. A man is buying a golf set. He has two options to choose from. Interest rate is 8%. Option A Option B First Cost $ 5 000 $ 10 000 Maintenance Cost $ 500 per year $ 200 per year Useful Life 5 years 10 years Salvage Value $ 600 $ 1 000 ▣ 4. What is the annual cost of Option A?