UNIVERSITY OF DAR ES SALAAM

COLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF MECHANICAL AND INDUSTRIAL ENGINEERING

PROGRAM; BSC IN INDUSTRIAL ENGINEERING

COURSE; ENGINEERING ECONOMICS.

CODE; IE 440.

COURSE INSTRUCTOR; DR JOHN KAFUKU.

PARTICIPANTS

S/N FULL NAME REGISTRATION NUMBER SIGNATURE

01 MILAMBI, FAMILY MOSES 2016-04-03414
02 MWAKISU ERIC 2016-04-03416
03 MASSAWE, LIVING F 2016-04-03438
04 MBUTU, ABDUL B 2016-04-03411
05 JEREMIA ZABRON 2016-04-03426
06 JUMA HAMIS S 2016-04-03418
07 NDYETABULA, VERYNICE 2016-04-03421
GODWIN
Question 1
In most engineering economy studies, the best alternative is the one that: (a) Will last the longest
time (b) Is most politically correct (c) Is easiest to implement (d) Has the lowest cost.

ANSWER

d.has the lowest cost.

Question 2
What Makes Economic Decisions Differ from Other Design Decisions?

ECONOMIC DECISION.

Involves predicting, forecasting products sales, product selling price, and various asset over future time
frame. Economic decision are not time invariant and have to be based on best information available at the
time of decision and through understanding of uncertainty in the complicated data.

WHILE

DESIGN DECISION

In this situation an engineer utilizes known physical properties, the principles of chemistry, engineering
design correlation and optimal design. It is time invariant meaning that if the engineer design to solve
particular problem is done today, next year the final design would not change significantly

Question 3

current asset
i. Current ratio =
current liability

3994000
=
1113186

=3.59 times

current asset −inventory

ii. Quick ratio=
current liability

3994000−1070000
=
1113186
=2.63 times
 sales
iii. Inventory turnover=
averagesinventory balance

Average inventory balance=∑ inventory /2,

8391409
= ( ( 1070000+64789 ) /2 )

=14.79 times

receivable
iv. Days sales=
avarage sales per day

1123901 x 365
=
8391409

=48.89 days

sales
v. Total asset turnover=
t otal asset

8391409
=
4834696

=1.74 times

net income
vi. Profit margin=
sales

293935
=
8391409

=3.5%

price per share

vii. Price to earnings ratio=
earning per share

$ 158
=
$ 1.19
 =132.77
total stakeholder equity− preffered stock
viii. Book value per share=
share outstanding

457713
= -0
12507
=$36.6

ix. Return common equity(ROF)=

Net income available ¿ common stakeholder ¿
avarage common equity

293935
=
457713

=64.2%

net income+ interest expense ( 1−taxrate )

x. Rate on total asset=
avaerage total asset

⌊ 293935+ ( 128000 x (1−0.3 ) ) ⌋

=
4834696

=7.9%

Question 4
In this question the responses can vary from the ethical (stating the truth and accepting
the consequences) to unethical (continuing to deceive himself and the instructor and
devise some on-the-spot excuse).
Lessons that wakalinga should learn from experience are many but few of them are;-
 Think before he cheats again.
 Think about the longer-term consequences of unethical decisions
 Face ethical-dilemma situations honestly and make better decisions in real time.

However, wakalinga may learn nothing from the experience and continue his unethical
practices.
.