You are on page 1of 5

Mapua Institute of Technology

School of Electrical, Electronics and Computer Engineering

Engineering Economy

Chapter 1
May 2, 2016
Date Submitted

Name: Yambao, Karen Alyssa M.
Class #
Course &Sec: EE40/B7


Dr. Catherine S. Salvador


Members: Class # Names ANDAYA. what is the market interest rate likely to be? . Florence BACASNOT. Mark Cavin MENDOZA.13 When the inflation rate is expected to be 8% per year. ARVIN 1.

000) 1. what was the principal amount P of the loan?  $4. 801.920. Therefore.600. The market interest rate is usually 3-4% above the expected inflation rate.600.10) P = $3.000. 920 300 500 400 400 500 600 300 300 500 400 400 700 +200 +300 -200 -280 +100 +300 +500 +400 +400 +100 0 +1100 ($2. Market rate range=3+8 to 4+8= 11% to 12% per year 1. Month Receipts ($1000) Disbursements ($1000) Net CF ($1000) Jan 500 Feb 800 Mar 200 Apr 120 May 600 June 900 July 800 Aug 700 Sept 900 Oct 500 Nov 400 Dec 1800  Net Cash Flow = $2.4) .35 A solid waste disposal company borrowed money at 10% per year interest to purchase new haulers and other equipment needed at the company owned landfill site.653 1.000 = P(1+0.54 The time it would take for a given sum of money to double at 4% per year simple interest is closest to: ( a ) 30 years ( b ) 25 years ( c ) 20 years ( d ) 10 years  2P = P+P(n)(0. If the company got the loan 2 years ago and paid it off with a single payment of $4. determine the net cash flow that will be recorded at the end of the year from the cash flows shown.10)(1+0.22 For a company that uses a year as its interest period.

What about the ethical aspects of the government’s allowance for these plants to continue polluting the atmosphere with the emissions that may cause health problems for citizens and further the effects of global warming? What types of regulations. with this the effects of coal in the environment can be minimized with having still its efficiency. . is seasonal it varies with the changes of weather how reliable is your additional power if it comes from the wind?  Renewable source of energy is expensive and in this case you are using the wind energy. Much of the current generation capacity of PEC facilities utilizes coal and natural gas as the primary fuel source. especially given the environmental issues with coal-generated electricity and the rising costs of hydrocarbon fuels?  Could the additional 60 MW be enough to sustain the electricity needs of people within its vicinity? If so.04n n = 25 answer: b CASE STUDY (RENEWABLE ENERGY) 1. there are improvements on the use of coal. how many windmill equipment will be needed to acquire the additional 60 MW per year? And how much will the consumer have to pay for these? 2. for how long?  Wind energy as we know. what types of questions would you ask of a staff member in your first meeting with him or her?  How much of PEC’s generation capacity should be from renewable sources.1=0. The government introduce the clean coal technology. If you wanted to know more about the new arrangement with the wind farm in south Texas for the additional 60 MW per year. if any. should be developed for PEC (and other generators) to follow in the future?  Currently.

According to Bed Circular No. You wonder if the addition of 60 MW of wind-sourced electricity will make any difference in the LEC value for this next year. 3. Series of 1978 “COAL MINE SAFETY RULES AND REGULATIONS”.5847.526 million . can you determine the value of unknowns in the LEC relation for this year? Is it possible to determine if the wind farm addition of 60 MW makes any difference in the electricity rate charged to customers? If not.27¢/kWh for this year. The government has issued some guidelines in terms of the health and safety procedures with the utilization of the coal and natural gas.1022 X (0. what additional information is necessary to determine the LEC with the wind source included? 11 P + A +C  LEC approximation uses (1. You did learn the Following: This is year t _ 11 for LEC computation purposes n _ 25 years i _ 5% per year E11 _ 5.5847) 0.1. You developed an interest in the LEC relation and the publicized cost of electricity of 10.1022+ (5.052 billion kWh LEC last year was 10.05) = 0.22 ¢/kWh (last year’s breakeven cost to customers) From these sketchy data.1027 = 0. escape ways.052 B)(0. X = 11 11 11 and LEC last year = 0. there are guidelines to be followed by the mining industry such as ventilation. allowable limits of toxic and explosive gases as well as health and sanitation facilities.5847) X = $2.