6/2/22, 8:06 PM Quiz 2 (CH3, CH4) V1: SP22-EGR230202 Engineering Economics

Quiz 2 (CH3, CH4) V1

Due No due date Points 20 Questions 6
Available until Mar 2 at 4:45pm Time Limit None

This quiz is no longer available as the course has been concluded.

Attempt History
Attempt Time Score
LATEST Attempt 1 45 minutes 20 out of 20

Score for this quiz: 20 out of 20

Submitted Mar 2 at 4:45pm
This attempt took 45 minutes.

Unanswered Question 1 0 / 0 pts

Did you send your handwritten and scanned work ON TIME.

NO

orrect Answer YES

Question 2 4 / 4 pts

Find the annual effective interest rate that is corresponding to the actual
interest of 10% per year compounded monthly.

Choose the option that is close to the right answer.

https://aui.instructure.com/courses/3947/quizzes/2836 1/4
6/2/22, 8:06 PM Quiz 2 (CH3, CH4) V1: SP22-EGR230202 Engineering Economics

10.25%

Correct! 10.45%

10.15%

10.35%

Question 3 4 / 4 pts

Find the annual effective interest rate that is corresponding to the actual
interest of 10% per year compounded quarterly.

Choose the option that is close to the right answer.

10.45%

10.15%

Correct!
10.35%

10.25%

Question 4 4 / 4 pts

Find the annual effective interest rate that is corresponding to the actual
interest of 10% per year compounded semi-annually.

Choose the option that is close to the right answer.

10.15%

10.45%

https://aui.instructure.com/courses/3947/quizzes/2836 2/4
6/2/22, 8:06 PM Quiz 2 (CH3, CH4) V1: SP22-EGR230202 Engineering Economics

10.35%

Correct! 10.25%

Question 5 4 / 4 pts

An automobile company is evaluating the purchase of an automatic

feed machine for a finishing process. The auto-feed machine has an
initial cost of $23,000, an estimated governmental incentive value of
$4000 (Inflow) occurring at year 5, and annual maintenance and
operating cost is expected to be $3500. Using a rate of 10% per year
and a predicted life of 5 years, find the equivalent TOTAL present
worth (feed machine+ maintenance +incentive).

Correct! 33000

63000

43000

53000

Question 6 4 / 4 pts

An automobile company is evaluating the purchase of an automatic feed machine for a

finishing process. The auto-feed machine has an initial cost of $23,000, an estimated
governmental incentive value of $4000 (Inflow) occurring at year 5

What if the annual maintenance and operating cost is expected to be

$3500 and is starting year 3. Using a rate of 10% per year and a predicted
life of 5 years.

Find the equivalent TOTAL present worth PW.

https://aui.instructure.com/courses/3947/quizzes/2836 3/4
6/2/22, 8:06 PM Quiz 2 (CH3, CH4) V1: SP22-EGR230202 Engineering Economics

Correct! 27000

57000

47000

37000

Quiz Score: 20 out of 20

https://aui.instructure.com/courses/3947/quizzes/2836 4/4