This document outlines an engineering economics final exam with 7 questions covering topics like depreciation, mutually exclusive projects, payback period, and methods for evaluating alternative projects. It includes calculation questions involving benefit-cost analysis to select the most cost-effective location for a dam project, comparing depreciation methods, finding an internal rate of return, and using benefit-cost ratio to analyze mutually exclusive pipe diameter alternatives for a water pipeline project. Students are asked to explain, elaborate, describe, calculate, determine, tabulate, and find values related to these engineering economic concepts and analysis techniques.
This document outlines an engineering economics final exam with 7 questions covering topics like depreciation, mutually exclusive projects, payback period, and methods for evaluating alternative projects. It includes calculation questions involving benefit-cost analysis to select the most cost-effective location for a dam project, comparing depreciation methods, finding an internal rate of return, and using benefit-cost ratio to analyze mutually exclusive pipe diameter alternatives for a water pipeline project. Students are asked to explain, elaborate, describe, calculate, determine, tabulate, and find values related to these engineering economic concepts and analysis techniques.
This document outlines an engineering economics final exam with 7 questions covering topics like depreciation, mutually exclusive projects, payback period, and methods for evaluating alternative projects. It includes calculation questions involving benefit-cost analysis to select the most cost-effective location for a dam project, comparing depreciation methods, finding an internal rate of return, and using benefit-cost ratio to analyze mutually exclusive pipe diameter alternatives for a water pipeline project. Students are asked to explain, elaborate, describe, calculate, determine, tabulate, and find values related to these engineering economic concepts and analysis techniques.
This document outlines an engineering economics final exam with 7 questions covering topics like depreciation, mutually exclusive projects, payback period, and methods for evaluating alternative projects. It includes calculation questions involving benefit-cost analysis to select the most cost-effective location for a dam project, comparing depreciation methods, finding an internal rate of return, and using benefit-cost ratio to analyze mutually exclusive pipe diameter alternatives for a water pipeline project. Students are asked to explain, elaborate, describe, calculate, determine, tabulate, and find values related to these engineering economic concepts and analysis techniques.
WKU, CET, HWRE: Engineering Economics Final Exam 2022
Part I: Theory 1. Explain what are depreciation, mutually exclusive project, payback period, inflation and sensitivity analysis (5 marks) 2. Elaborate the difference between break-even point, rate of return and benefit-cost analysis methods of evaluating alternative projects (6 marks) 3. Write and describes key elements of the project assessment (4 marks)
Part II: Calculation
4. Ethiopian government needs to construct a dam across the river for the water, energy and food security of the country. Then, the government needs the engineering cost assessment for a different site across the river to locate the dam. The A to F site is considered as a feasible location with the following cost shown in the table below. Select the cost-effective location using the benefit-cost ratio method if the minimum rate of return is 6% (10 marks). Cost (in dollar or $) A B C D E F 6 Construction cost (10 $) 6 8 3 10 5 11 3 Annual income (10 $) 350 420 125 700 350 700 3 Annual operating cost (10 $) 11 12 10 13 11 13 5. A factory discharges wastewater into a river. The initial concentration of pollutants in the wastewater is 2000 parts per billion (ppb). Before entering the river, the water must pass through multiple filters equipment to reduce the concentration to an acceptable level of 10 ppb. Therefore, to reduce the concentration of the pollutants, wastewater treatment equipment is required. A factory owner buys the equipment for $200,000. The useful life of the equipment is 5 years, and the salvage value is $20,000. The factory owner uses different method of depreciation. Determine and tabulate the annual depreciation amounts and book values of the equipment at the end of each year using straight-line, sum of year digit and decline balance method (If equipment has a cost basis of $4,000 and a 10-year depreciable life. The machine has no market value at the end of its life. Hint: use R = 2/N) (10 marks) 6. A hydraulic machine equipment company is considering the acquisition of a new water pump machine. The life of the project is 3 years with no salvage value at the end of its life. The required initial investment of the project is $50000. The annual projected net cash benefit over a three-year project life is $15000. Find the internal rate of return (IRR) for the machine using interpolation (7 marks). 7. A water authority is planning to install a new pipeline to connect the treatment plant to a reservoir tanks 1500 m away. Both 120 mm and 180 mm pipes diameter are being considered. The water authority uses an annual interest rate of 10%. If the annual benefit for 120 mm and 180 mm pipe are $1000 and $2000, respectively. Compute and determine the mutually exclusive alternative of the two pipes using benefit- cost ratio method (8 marks). Pipe diameter Initial cost Service life Salvage value Annual maintenance Pump cost/hour 120 mm $2500 12 years $300 $300 $1.40 180 mm $3500 12 years $400 $200 $1.00
