ps Pi -ost| nes aa) os Periocl Pe n ors Pauiod ods fr Pirin) | yn d spall pawl Keay, = i POCAAL, hed 4 Lrtwd $ Goh Flew Cu Pons med 473 { she The PUA oth SPW Sw oe Pan” Fs POpen) Tei ‘ode ime to, Small pele) Exi- Led = 17 Rey: dyer to mabh Agen? Clo) "1 = 12-€8/, donde (140-01) ~ 1 5 ad = 303017 Y Ee Sey) ne i) pop nenirel inkerot pale Pel Feet ger iy (egy! Ease nominal iobest rae. +d 20f ComPavelad Gpordaly ly. oe Pastas ma 4 Aamtn2 He = Be25/ taf (AY 2 1.05 I= 2155/4,wir seien A fee he Q i nn F = ACE 200) tit Tt Sing lis F cL AS sm (OMIA S Mus (OD Sap fe ‘ eet ) n= On-1 40 Ye P IL pé A ee Coied) 2 Heo ° Pz ACRA 2420) c Exi- Firm PaGloreel Some. epupret af very Bvorble. Price. of LE 100° The epupmest” rarulled annol oat Salley of F000 hen olay the. opht. yess it win used pt ta end of eghh pans, the qupned war Ssld fer 2%00 LE 44-97 per jen. Dif fhe eguipmot Parchaoe pa ve fo be cleaitobl. 2 — L-€/ gear Nn) ° eae Le gio, Lee 2 Bods aie be 7670 ; nS ; ve} preset sh = 210000 ~ 000 (YA 298 _ 2gc000(%,%/2V ii c 98.24 vey (eo Ohis nb olortable 134 4 eee oo 2 Vin archers tho uy) Saving Det IS" ca WS) OD GeeYL Alto re | Aithmebic. Plogternkn Serer a : (ck baticrip & ote a Fe pi Ine eat Be G_ Foss —BeNe 2 Ieee Leg a B -3 7 aia : a qos (It E) c 5004 Fe rc prin) + Sf Opoin? 4] C pee C fnoveno ty) ke (Deg) i a) afore] facie! dechany ) : Perk 5 & He ay \ : oe: Ze NE2 Ba lo y 217-14 16 7 -¢ , i IPE SAAD 2 wi dew = %00 7 yo 2620 ante ibd ep 253 hs) < AWA, oD packfiahr EK: oe 0, “pe _. Eee dosent d0px0d ahercd (04 ae dun of fotur ee axles)CAIRO UNIVERSITY FACULTY OF ENGINEERING Mechanical Power Engineering Department ‘Third Year (Power) March 2013 Engineering Economy Time allowed 45 minutes 1. A building contractor purchased a dit seraper for LE. 35,000, He maintained the seraper ata cost of LE, 2500 per year. He overhauled the machine 4 years after the purchase at a cost of L.E 000. ‘Two years after the everhay he sold the seraper fOr LB. 18,000, What was his equivalent ‘uniform annual cost if the interest rate was 10% per year ? 2. Declining-balance depreciation at a rate of 1.5 timies the straight-line rate is to be used for ‘utomated process-control equipment with a frst cost of L.E, 175,000, expected savage value of LE, 32,000 after 12 years, Compute the depreciation charge and the book value for year 8. 3. A certain company is planning to make five equal dep. sits such that 18 years from now the company will have L,. 100,000 to replace a small machine. If the first deposit is to be made 3 ¥yeuts from now, the second js to he made 6 years ftom now, the third isto be made 9 years from now, the fourth isto be made 12 years from now, the fifth is to be made 13 years from sow, how ‘much must be deposited each time if the interest rate is 12% per year ?Midtem Mach 2ol3 La l% pager | SV=1800° Le Pe eq Pe4 EUAS e800 + 1000 (Hsu abe 10/> 8) 4 38000 (F-% 6) — 18089 (B21°% <) Evie oy 4 35000 ences 1 ¢ 4ooe CHD [ger nied B88 30.6251SF _i Edens — Decliniy Lealence olepecitien r-dbwel Ee: 15a Pz sooo + SV= 32000 HN=!2g% Pa. 1 48% Sals 15d-15 Bes (5(BSY ) Ls 1 17500 — B200° = Q.10214 (oan) aac Ce [psece) Dd PC-EDE = ae C( _ oto2i) eLosert)« B408.0F : 08 BY PCR ey = 17500 CI _01024)F - 4306 1h 73 3908 aaa Le | a L3G Ba > PCr pit> N80 nt Dis Le! ee ei ge o> bx» cl pedal kent = a ht Bhzs¥ DI pen age SV re [Bim SY |As 12 Pea yeas 2 hee Ss 4s 648 FGion!2 2 4lS 16 F 2 fF ist Sohstion 7 : | A(GaRLdt OG hp Al th ol AC Fes Pfst2) + (Fp 2i2/> BD = 100000 laaces i | S qadte UH AUIS + (2 | he So [A= 642.7208 24 2.92972 Le tot” aes = 640928 = (14012) : (“a- yortls 5) (He 2/53) = 190008 al 1-4otti2z'— | \ - yz) = looses LooniesCAIRO UNIVERSITY FACULTY OF ENGINEERING Mechanical Power Engineering Department ‘Third Year (Power) March 2012 Engineering Economy Time allowed 60 minutes “{ 4. What compounding period is associated with nominal and effective rate of 16 % and 16.986 % per year, respectively ? N\ 2. Aperson deposited LE. 60,000 into a bank account. The money was left on deposit for 10 years. During the first five years the person earned 9 % interest per year compounding monthly. The bank then changed its interest policy so that the second five years the person earned 6 9% Interest per year compounding quarterly. How much money was in the account at the end of the 10 years ? a 3. Acertain company Is considering borrowing LE. 1.75 million to update a production line. 1 ft borrows the money now, it can do so at interest rate of 10 % per year simple interest for 5 years. Ifit borrows next year, the interest rate will be only 8 % per year, but the interest will be compound interest for 4 years. Should the company borrow now or one year from now ? Assume the total amount due will be paid. when the loan is due in either case. 9 ~\,4. An e-computer company spent LE. 85,000 on a website to start its business: Expenses were LE. 50,000 the first year, increasing by LE. 10,000 each year. Income was LE. 50,000 the first . year, increasing by LE. 40,000 each year. What rate of return did the company make in its first 5 years ?cites cep = [6.486 4 pagent = 16 per feet _ Pegs Omporsle Perec Selz- lp CO I=! oles = C+ OE ae Gt y= 4 a _ [empondey pore = Foto deff 2 3-220 Adg, « pet, Ce ° Goo0o Le hl ‘yt = GIBG6K Ldf, a Ci+ 288) : fo ul boeeo( Hs 9238/3 (fp > C17F 2 5)F = Go000 (1+a07ga)* (142.6636) C= 12652HF8 we another Seldian ON eT EA Doig ish fie > . ; ee F Lyte 2757 aan d ac0e (Fh OY _ 6 (Yoo fia a Dey ord Be sev 26 ae eS dans = 2% = 126524 ae eee AQ oD. S apie) at cteee (pues F o toe see rT. ms L LASAl0 : mane (It a 88) = 228 ie 7 ax @ 2 (onpd eB GES o } 23 4 ei oe Ss vase ’ 2BBKIO Le Fe IASu0" (> 8/54) 27g (08) aN - (26%) Ae VL Pa pe 200 X 2 —S i 2 + 4 le Sav icf Pa yet Y Ber — Boos. 26c0X% (A- \ef> ) lo . _ BGeooX (ie | : Zeooee + Loeaiord s[Z| Give Fale Pa year Ma 4 } . Aquerchs 2 ae {ooo SRR ast tne ttt P27 P = |Sooo (% » 3/516) = \8000 ( “S 5, Machine (4) as an initial cost of LE. 60,000 , annual maintenance of L.E, 3,000 per year, and no salvage value at the end of its four-year useful life, Machine (B) costs L.E. 120,000. The first year there is no maintenance cost, The second year, fonance is L-B, 606, and increases LB, 600 per year in subsequent yesrs, The machine has an anticipated L.E. 30,000 salvage value | at the end of its 12-year useful life, If interest is 8 % per year, which machine should be selected? Use the present-worth method. 4. Determine graphically the optimum solution for the following linear programming: Minimize Z = - 4X1 + 6X2 + 60 Subject to Xi+ 2% $40 wu. (1) | 2X-% <8 -Q) 4X - 2X) s 10 : (3) Xe (A) Xe (S)ne BBeTS - De $+ BV4 Soli D- P-sv COB = 4 Boo LE P- AD = Bose® Ath oe = \08oe WE ote ye PED. 078-7, 20 is P 4 600 (Booxs7 > 24) 2700 = P+ bee j (oor) | Gots) (0073) [Pe [ies Ley Pyee ' 7 (Mh. 37-9) oe ag! —_—— Cun oe ln A sot Be ast % ao ce ecto etn eo te es tiene re q_(e M2 | OG bore Pen (feo JQoveek -E Te: poe + J@(%> 87 aM & {\% tn)“ | “Te 8 12) Sone? ee af a\2) (cus a x 696, {te -t = oo ( c be) B 120000 [éee ) on (2,26 6 Jive Cte) ~ Zove (5a)CAIRO UNIVERSITY FACULTY OF ENGINEERING Mechanical Power Engineering Department Third Year (Power) Aprit 2009 Engineering Beonomy : ‘Time allowed 40 minutes 1, Given: A situation where the annual interest rate is 12%. When quarterly compounding is used, rather than monthly compounding, the nominal interest rate: » @reases EO Remains the same. “© Decreases (Other (apecity, Under what circumstances are the nominol and effective interest rates exactly equal; or is ~ this never true’ = 3. Decide whether each of the three statements below is true or false, cas (a) Af interest is compounding quarterly, the interest period is four months. SQ (b) (FIA, 12%, 30) = (F/A, 1%, 360). (©) (IP, i%, 10) is greater than (P/F, 1%, 10) for all values of 1% ™ zer0%. “A.A used car dealer tells you that if you put LEJ7,S00 down’on a particular car your ayments will be CE 9SS per month for’ years at a nominal interest rate of 18 %. payments will be CESS pert years minal interest rate Assuming monthly compounding, what is the present price you are paying for the car? SoeMicthum [Ape eee eee @® TH Renowned wdestrate Cr) Pensins Pa Same (Confonly Red) rio bghasey AS BL lips rhe [ET whe Hue yearly ComPowrcing TB] ww X Ciduest petoct io Smedhe) (b) x | Coe ee Ve LK. 2D = Goss = B444-96 ~@-O4 (COUTAmdhs 1B =18h eee Aa TES LE/ monte “4 Sao LE VPs? Pe. ABS 4955 Cm 212/88) G eal i Q.05)e—\__ Ao «VSS | a (ee aon [Pe “=p. Awol. é 6 AE beg, res _ ee x of ae - 2. CAIRO UNIVERSITY : FACULTY OF ENGINEERING Mechanical Power Engineering Department Third Year (Power) a April 2008 Engineering Economy ‘Time allowed 45 minutes 1. Which of the statements below are true and which are false, if the interest rate is 8% per year: 8} LE, 98 now is equivalent to L.E, 108,50 one year from now, b) LE, 200 one year past is equivalent to Lif. 208 now. ©) LE. 3000 now is equivalent to LE, 3240 one year from now. d) LE, 3000 now is equivalent to LE, 2787.78 one year ago. ) Interest accumulated in one year on an investment of L.E. 2000 is LE. 160. 2. if an investor deposits LE, 12,000 now, .€. 3,000 three years from now, and LE. 6,000 five years from now, how many years will it take from now for his a total investment to amount to LE, 60,000 ifthe Interest rate is 6 % 2 =] 3 Atmachine, with a first cost of LE. 20,600, is expected fo save LE. 1,500 in the first year of operation and the savings should increase by LE. 200 every - year until (and including) the ninth year, thereafter the savings will decrease by LE. 150 until (and including) the 16" year. 1s this machine economical ? Assume a minimum attractive rate of return of 10%.\- Git: feel Tage &) False Pa 18 L-EE0=| Fe P(aten) = 9B U08) = WORRIES “) False Pen +n Fe P( Hb) = 200 Cl Ob) = AGE 3000 (1.08) = 32408 ». Fa PC%p oto) = : pny ce 3000 FL; 2 AAAS 7 FC pion) s 08)! Ke e) True Fe 20001 anes P= Zeceto.08) 2 1GO LE2 Goooe LE | ‘Oa - \b Gain oe bf we a | | — 3000 ne 6000 ME 19,000 LE al Solz- }2000 + 2000 (> 6/53) + G00 (Z.6h5)2 Gev0e[ Poi, ooo + 800 + goog = SmmGe goa * Gog G98)" Cet n = \A3 v 20 SSus Gs ~ n) |] + See = tacos (-28)” vo eer b a ~ 4Bo0s|(.08)" an se. _. 3000 Oat i= I5547 = (6 geo m2 16 ae ge co Ot Skt fe pacheree‘21 Siew: = 49 4 Sv= Gookke Pz Gooo LE clechaivg balane peethood anes bay: Da So}. BV 2 SV = pare) = 600 Good Qt £= 0-364 DP. - RI-E)E = ool |~ 0364) (0361) = |Z9F-02 LE TO i157 fa) 3 (G00) 1680 | [6800 ) : be 3 ~16600) 416800 (Eel NGAP) (0p » Ist) — 12200 (15/7) pw = 160669.32 L-& Le e [Pwi= (220 + 16800) [g}2 aec@ CAIRO UNIVERSITY FACULTY OF ENGINEERING ‘Year (Power) [ Fill mark = 20) April 2006 ‘neering economy Time allowed 60 min, An engineer borrowed L.E. 30,000 from the bank, payable in six equal end-of year payments at 18%, The bank agreed to reduce the interest on the loan if interest rates declined in the central bank before the loan was fully repaid. At the end of three years, at the time of the third payment, the bank agreed to reduce the interest rate from 18% to 15% on the remaining debt, What was the amount of the equal annual end-of-year payments for each of the first three years? What was the amount of the equal annual end-of-year payments for each of the last three years? A central air-conditioning unit was purchased for L.E, 250,000 and had an expected life of 10 years, The salvage value for the unit at that time was expected to be L.E. 40,000, What will be the book value at the end of 7 years for declining- balance depreciation? A company is considering establishing a new machine to automate a meat packing process. The machine will save LE. 50,000 in labor annually. The machine can ‘be purchased for L.E. 200,000 today and will be used for a period of 10 years, It is has a salvage value of L.E. 10,000 at the end of its useful life. The new machine ill require an annual maintenance cost of L.E. 9000. The company interest rate is 10 %. Do you recommend automating the process?Ax 2 yen Ay = 2000 [Busi8fo6) Sha ee ye Ke 6 Wap Pde 018) U1) x aoe [OBO 7 Aya BS FF B04 Lelgeor Ee Temaining chbt cb the. end af Howe peers Ze AM elesy Al ead ae Pe g574-204 (18/03) = 8599-304 JUIPEI ig che, 8 a [Se rays | 4 LSS M230 b Cabo en ise 1864 \5/ a ai ced a _Aetteeifpaeies) tPF 9 Ja [Aa =_ = Bb Be, L— piesa4 sV 2 40000 noon: Pe 250000 NY 2\0 gers ee: BYz (Dechiaieg balance mottecl ) Gol Mw RY, 2 SVs PU-E) - 4Q000 = 25000 u-&)? sgt Faz dletis BYy = ple)? ps0000( 1-O16715) © & Ee io Joe Ls qgl2- S15 LE “rE ee: ooo 1-E/gen Pz 20000 + (doco — Socc0) (Hp 210/ a0) ~l0 0c (% 5]0/ 210) lo cyocn + (2-2) [Lhe] “EB Le ~35 782-684 (Pref) Yes od os andoweh 4. PancaiRo UNIVERSITY g FACULTY OF ENGINEERING Nachanical Pour Engineering Department Third. Year (Power) Nevambar 199, Engineering Economics Tima allowed 75 min, A person borrows 20,000 me ak A nominal Interest rate GF 20 y per yaar compounded quarterly. It is desired tavrapay the ban in 20 payments, each payment is every other year, with the first payment to start 6 months from now. Lf the payaents to decraase by GO mu. wach time, determine the size of the #14th paynent. ‘ An asset was purchased 6 ywars ago for 6,400 mu. At that time) its life and salvage value were estimated to be 10 years sagqe2. 1 1,400 m.u., respectively. If the asset.is smc now fpr i, tho mus, what is the difference between its market value of t,5097 ¢ Meus and its present book value if depreciation nas been bys i> The straight Line method 7 mes ] | Lin The, sum-of-the-year‘s-digits methad Machines that have the Following costs are under censideraticn| | for a continuous production process. st cost, mu. Bnnual operating cost. ue fyear Overhaul every 3 years, mu. i Overhaul every 4 years, au. Salvage value, mu. Life, yaars 4 8 yj i - Deters be ae the i rate of 12 % per year. & would you make the conpartson 2 (EUR Le iS yo BN SLE Lei IN 4 . f LOK ya eS Lgl a g | qi dle the a 4 scene £ i SSSR eH q Boa ~ u = MANAR FAMILY ey iHieb town — Mov (43) bs 96 oe oO Givens - Pz 2OOCO MH 4 £2 20/Pea yeor p Maa 4 Ge —Bo me/Paynct Fredy Runt (Zu) pg : ae Aarons = 7 2h Agen = C+ dao) -I= 2.55L agen = Cit Aquercta) d= AFB / : [acpi 4 + (Be) wm 2 (2,028.88 ice _-! fe 80. cue) po |- i$ aot |e a capes 20000 =| A ["s 1A | om | aa (ont L | | Geb A= 42q5.4UF ms bat Ge Zea a = -&0 feos 8(2] Gieny- asser P= 6400 § n=1l0 oN. leo MY = 150° & faq: BY. -MNo & D shoig ht Line method D Sun fear oligits neo Solt- wubbod me asi uf Line warhoct oe D = 200 marfged Ble By, 2 P- 6D 2 Seo me Sv 6 571 @ 4 BV — HM = 3 400- £00 ( Bw : =i, 1906 x pw) ay Fey nunbell + yes dys UN) = eeu = 5S Ry, 2 P- os vosteos (0-90) = 6400 -|é a 0 46108) T(t 1409) pe 2309.04 me Yo - Ma = (704 oF Te) lay Fexy ( wlA) tahicle Shovkl be. selected pascal on BLAC. i) if Pw Evoldian Bb nede Gkovw woul you mle Campa 30" EvAch, = 15600 + 62000(fRota') 1200/6 113) (Po) = $000 (Ae- do) = 15800 + 6tme UDF + reooltanft Boro -& Uta (rai uo Gua), = 24209 SF “UU ACL, = 2) ; 2 ; EUVACI, + 21000 +34000(4 448) +3000 (6 sia) — 10000 (45.5459) 00 parece itu! 4 3000 (Hi) (8 hy yea Eva], = 3607! 085 vv/ peas) Seo Chee A fe wd) nv 23 bpm wort cabdien@ > Fadlat 1 . 3 IB sey 62 Pe yen 13 16 oo OL 224ss Fe [TA Pe 20 es Boo mw cy eat Ebi oid Byer Asyen = Cle dyean) — | = (1.06) —1= M9016 P= Seve [A 8 oh (2 6.) ie 00 \ - . ri Brive 7 C06 a [Pe iad ame by {el PalO mn Ee Hoes eee, bef, Fa yeon n Ae 2ER-B mw Fy i 7 Fd Yow ecidhel te Pou aff the Ak Loan offer Re ted Raymedd iomediabelas,a i Pant 1Oe 2622 ser — “eres ly trad wer get [ne See fa) Pa\000 LO? WP ps ppv a t is . 5 eyay coy js Sp pir % oye ie | y Fate 2023 (YW. of o 2b E (a1) >2) {Ooo 2 oe an) ? = 2633 (oais [+k * a ot |e - C5602 mw ey O°. bye 262.3 ( Y, 01,3) | 2 262-8 wal] _ Ae 223-8 {OU ‘| Fa G56ea row | eomaeet — Be ASS