‫المعهد الكندي العالي لتكنولوجيا‬

‫الهندسة واإلدارة‬

(IEN 351) Engineering Economics

Quiz 1

Name: Write your Name

ID: Write your ID
Rename the file Name With your ID Only

1. For the following cash flow what is the payback period? (5Marks) (10 Mins)

Year 0 1 2 3 4 5 6
Costs ($) 18,000 1,100 1,150 1,100 900 950 1,000
Benefits($) - 2,300 2,950 3,900 4,900 5,800 6,950

Insert Your Answer Photo Here.

2. An engineering manufacturing company is producing a radar sensor; that resist harsh weather
conditions, to accurately monitor or detect objects up to 15 miles away. It has a list price of $589,
and the variable cost of manufacturing the unit is $340. (5Marks) (10 min)
a) What could the company’s fixed cost per year be in order to break even with sales of 9000
units per year?
b) If the fixed cost is actually $750,000 per year, calculate is the number of units at which the
product breaks even?
Insert Your Answer Photo Here.