12/13/21, 9:32 AM
Final Examination: Group 4 ES-ECON - ENGINEERING ECONOMICS
Final Examination
Due Dec 13 at 9:30am
Points 100
Questions 7
Available Dec 13 at 8:30am - Dec 13 at 9:30am about 1 hour
Time Limit 60 Minutes
Instructions
GOOD LUCK!
This quiz was locked Dec 13 at 9:30am.
Attempt History
LATEST
Attempt
Time
Score
Attempt 1
58 minutes
85 out of 100
Score for this quiz: 85 out of 100
Submitted Dec 13 at 9:30am
This attempt took 58 minutes.
Question 1
0 / 15 pts
You and your partner have become very interested in cross-country
motorcycle racing and wish to purchase entry-level equipment. You have
identified two alternative sets of equipment and gear. Package K has a
first cost of $150,000, an operating cost of $7000 per quarter, and a
salvage value of $40,000 after its 2-year life. Package L has a first cost of
$190,000 with a lower operating cost of $5000 per quarter, and an
estimated $26,000 salvage value after its 4-year life. Which package
offers the lower present worth analysis at an interest rate of 8% per year,
compounded quarterly?
Package K=-309790
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12/13/21, 9:32 AM
Final Examination: Group 4 ES-ECON - ENGINEERING ECONOMICS
Package L=-328949
orrect Answer
Package L=-238949
ou Answered
PackageK=-135847
Question 2
15 / 15 pts
Oil from a specific type of marine microalgae can be converted into
biodiesel that may serve as an alternate transportable fuel for automobiles
and trucks. If lined ponds are used to grow the algae, the construction
cost is $13 million and the M&O cost is estimated at $2.1 million per year.
Alternatively, if long plastic tubes are used for growing the algae, the initial
cost will be higher at $20 million, but less contamination will render the
M&O cost lower at $0.41 million per year. At an interest rate of 20% per
year and a 5-year project period, which system is better—ponds or tubes?
Use a present worth analysis.
Select Tubes=-19million
Select Tubes= -15million
Select Ponds=-18million
Correct!
Select Ponds= -19million
Question 3
15 / 15 pts
Two methods can be used for producing solar panels for electric power
generation. Method 1 will have an initial cost of $550,000, an AOC of
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12/13/21, 9:32 AM
Final Examination: Group 4 ES-ECON - ENGINEERING ECONOMICS
$160,000 per year, and $120,000 salvage value after its 3-year life.
Method 2 will cost $830,000 with an AOC of $120,000, and a $240,000
salvage value after its 5-year life. Assume your boss asked you to
determine which method is better, but she wants the analysis done over a
3-year planning period. You estimate the salvage value of method 2 will
be 25% higher after 3 years than it is after 5 years. If the MARR is 10%
per year, which method should the company select?
Select Method2= -334, 398
Select Method 2=-366,868
Select Method 1= -343,398
Correct!
Select Method 1=-344,909
Question 4
15 / 15 pts
The Camino Real Landfill was required to install a plastic liner to prevent
leachate from migrating into the groundwater. The fill area was 50,000 m2
and the installed liner cost was $8 per m2. In order to recover the
investment, the owner charges to unload at the rates of $10 per pick-up,
$25 per dumptruck, and $70 per compactor-truck load. The fill area is
adequate for 4 years. If the annual traffic is estimated to be 2500 pick-up
loads, 600 dumptruck loads, and 1200 compactor truck loads, what rate of
return will the landfill owner make on the investment?
Correct!
9.2%
9.4%
9.6%
9.7%
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Final Examination: Group 4 ES-ECON - ENGINEERING ECONOMICS
Question 5
20 / 20 pts
The conventional B/C ratio for a mosquito control program proposed by
the Harris County Department of Health is reported to be 2.1. The person
who prepared the report stated that the annual health benefits were
estimated to be $400,000, and that disbenefits of $25,000 per year were
used in the calculation. He also stated that the costs for chemicals,
machinery, maintenance, and labor were estimated at $170,000 per year,
but he forgot to list the cost for initiating the program (trucks, pumps,
tanks, etc.). If the initial cost was amortized over a 10-year period at 8%
per year, what is the estimated initial cost?
65,715
191,717
Correct!
57,515
212,832
Question 6
10 / 10 pts
A company purchases an asset for P10, 000 and plans to keep it for 20
years. If the salvage value is zero at the end of the 20th year, what is the
depreciation in the third year? Use sum-of-the-years digit depreciation.
Correct!
857
1000
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4/5
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Final Examination: Group 4 ES-ECON - ENGINEERING ECONOMICS
937
747
10 / 10 pts
Question 7
A tax and duty free importation of a 30hp sand mill (for paint
manufacturing) cost P360,000. Bank charges arrastre and brokerage cost
P5000. Foundation and installation cost were P25, 000. Other incidental
expenses amounted to P20, 000. Salvage value of the mill is estimated to
be P60, 000 after 20 years. Find the appraisal value of the mill, using
straight line depreciation, at the end of 10 years.
225,000
215,000
Correct!
235,000
205,000
Quiz Score: 85 out of 100
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