{"id":1178,"date":"2016-03-11T20:46:38","date_gmt":"2016-03-11T12:46:38","guid":{"rendered":"http:\/\/people.utm.my\/shamsul\/?page_id=1178"},"modified":"2016-03-11T20:46:38","modified_gmt":"2016-03-11T12:46:38","slug":"test-1","status":"publish","type":"page","link":"https:\/\/people.utm.my\/shamsul\/test-1\/","title":{"rendered":"Test 1"},"content":{"rendered":"

UNIVERSITI TEKNOLOGI MALAYSIA<\/p>\n

TEST 1 1 HOUR<\/p>\n

ENGINEERING ECONOMY<\/p>\n

QUESTION 1. BASICS AND CASH FLOWS<\/span><\/span><\/p>\n

i. List the four essential elements involved in decision making in engineering economic analysis.<\/span><\/span><\/p>\n

ii. What is meant by end-of-period convention?<\/span><\/span><\/p>\n

[12 MARKS]<\/span><\/span><\/p>\n

QUESTION 2. <\/span><\/span>INTEREST RATE AND <\/span><\/span>CASH FLOWS<\/span><\/span><\/p>\n

i. RKI Instruments borrowed $3,500,000 from a private equity firm for expansion of its manufacturing facility for making carbon monoxide monitors\/controllers. The company repaid the loan after 1 year with a single payment of $3,885,000. What was the interest rate on the loan?<\/span><\/span><\/p>\n

ii. Construct a cash flow diagram for the following cash flows: $25,000 outflow at time 0, $9000 per year inflow in years 1 through 5 at an interest rate of 10% per year, and an unknown future amount in year 5.<\/span><\/span><\/p>\n

iii. Construct a cash flow diagram that represents the amount of money that will be accumulated in 15 Years from an investment of $40,000 now at an interest rate of 8% per year.<\/span><\/span><\/p>\n

[18 MARKS]<\/span><\/span><\/p>\n

QUESTION 3. EQUIVELENCE<\/span><\/span><\/p>\n

    \n
  1. At an interest rate of 15% per year, an investment of $100,000 one year ago is equivalent to how much now?<\/span><\/span><\/li>\n<\/ol>\n
      \n
    1. As a principal in the consulting firm where you have worked for 20 years, you have accumulated 5000 shares of company stock. One year ago, each share of stock was worth $40. The company has offered to buy back your shares for $225,000. At what interest rate would the firm\u2019s offer be equivalent to the worth of the stock last year?<\/span><\/span><\/li>\n<\/ol>\n
        \n
      1. Iselt Welding has extra funds to invest for future capital expansion. If the selected investment pays simple interest, what interest rate would be required for the amount to grow from $60,000 to $90,000 in 5 years?<\/span><\/span><\/li>\n<\/ol>\n

        [30 MARKS]<\/span><\/span><\/p>\n

         <\/p>\n

        ENG ECON TEST 1<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

        UNIVERSITI TEKNOLOGI MALAYSIA TEST 1 1 HOUR ENGINEERING ECONOMY QUESTION 1. BASICS AND CASH FLOWS i. List the four essential elements involved in decision making in engineering economic analysis. ii. What is meant by end-of-period convention? [12 MARKS] QUESTION 2. INTEREST RATE AND CASH FLOWS i. RKI Instruments borrowed $3,500,000 from a private equity firm […]<\/p>\n","protected":false},"author":368,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-1178","page","type-page","status-publish","hentry","entry"],"_links":{"self":[{"href":"https:\/\/people.utm.my\/shamsul\/wp-json\/wp\/v2\/pages\/1178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/people.utm.my\/shamsul\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/people.utm.my\/shamsul\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/people.utm.my\/shamsul\/wp-json\/wp\/v2\/users\/368"}],"replies":[{"embeddable":true,"href":"https:\/\/people.utm.my\/shamsul\/wp-json\/wp\/v2\/comments?post=1178"}],"version-history":[{"count":0,"href":"https:\/\/people.utm.my\/shamsul\/wp-json\/wp\/v2\/pages\/1178\/revisions"}],"wp:attachment":[{"href":"https:\/\/people.utm.my\/shamsul\/wp-json\/wp\/v2\/media?parent=1178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}