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Assignment 2

First semester 2023/2024


Course: Engineering Economy

:‫مالحظة‬
pdf ‫اإلجابات تكون بخط يد الطالب فقط وتسلم على الموودل ب ملف‬
Q1: [3 marks]
Determine the value of Q that makes the two cash flow diagrams below equivalent at
a compounding rate of 12%. Show detailed calculations.

Q2: [4 marks]

Q3: [3 marks]
Compare the following two alternatives below on the basis of their present worth using
an interest rate of 14% per year compounded monthly. Which alternative do you prefer?
(Consider the useful life is 5 years for each alternative).
Alternative
X Y
Initial cost, $ 40000 60000
Monthly Maintenance and 5000 0
operations cost, $
Semi-annual maintenance 0 13000
and operations cost, $
Salvage value, $ 10000 8000

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