<\/p>\n
UNIVERSITI TEKNOLOGI MALAYSIA<\/p>\n
TEST 2 1 HOUR<\/p>\n
ENGINEERING ECONOMY<\/p>\n
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QUESTION <\/span><\/span><\/p>\n i. Look up the numerical value for the following factors from the interest tables.<\/span><\/span><\/p>\n 1. ( <\/span><\/span>P<\/i><\/span><\/span>_<\/span><\/span>F <\/i><\/span><\/span>,6%,8)<\/span><\/span><\/p>\n 2. ( <\/span><\/span>A<\/i><\/span><\/span>_<\/span><\/span>P <\/i><\/span><\/span>,10%,10)<\/span><\/span><\/p>\n 3. ( <\/span><\/span>A<\/i><\/span><\/span>_<\/span><\/span>G <\/i><\/span><\/span>,15%,20)<\/span><\/span><\/p>\n 4. ( <\/span><\/span>A<\/i><\/span><\/span>_<\/span><\/span>F <\/i><\/span><\/span>,2%,30)<\/span><\/span><\/p>\n 5. ( <\/span><\/span>P<\/i><\/span><\/span>_<\/span><\/span>G <\/i><\/span><\/span>,35%,15)<\/span><\/span><\/p>\n [10 MARKS]<\/span><\/span><\/p>\n ii. Pyramid Energy requires that for each of its offshore wind power generators $5000 per year be placed into a capital reserve fund to cover unexpected major rework on fi eld equipment. In one case, $5000 was deposited for 15 years and covered a rework costing $100,000 in year 15. What rate of return did this practice provide to the company? Solve by hand and spreadsheet.<\/span><\/span><\/p>\n [10 MARKS]<\/span><\/span><\/p>\n iii. A family that won a $100,000 prize on America\u2019s Funniest Home Videos decided to put one-half of the money in a college fund for their child who was responsible for the prize. If the fund earned interest at 6% per year, how much was in the account14 years after it was started?<\/span><\/span><\/p>\n [10 MARKS]<\/span><\/span><\/p>\n iv. CGK Rheo systems makes high-performance rotational viscometers capable of steady shear and yield stress testing in a rugged, compact footprint. How much could the company afford to spend now on new equipment in lieu of spending $200,000 one year from now and $300,000 three years from now, if the company uses an interest rate of 15% per year?<\/span><\/span><\/p>\n