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    Assignment 1

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    Navian Nadeem
    The document contains instructions for Assignment #1 for an engineering economy course. It instructs students to calculate marginal cost, average fixed cost, average variable cost, and average total cost using quantity, fixed cost, and variable cost data provided. It also contains 5 questions asking students to calculate amounts related to loans, discounts, rates of return on investments, and stock worth. Students are instructed to submit their assignments on time and in a specific format by the deadline of February 3rd, 2017.

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    Assignment 1

    Uploaded by

    Navian Nadeem
    145 views2 pages
    The document contains instructions for Assignment #1 for an engineering economy course. It instructs students to calculate marginal cost, average fixed cost, average variable cost, and average total cost using quantity, fixed cost, and variable cost data provided. It also contains 5 questions asking students to calculate amounts related to loans, discounts, rates of return on investments, and stock worth. Students are instructed to submit their assignments on time and in a specific format by the deadline of February 3rd, 2017.

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    engineering economy

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    The document contains instructions for Assignment #1 for an engineering economy course. It instructs students to calculate marginal cost, average fixed cost, average variable cost, and average total cost using quantity, fixed cost, and variable cost data provided. It also contains 5 questions asking students to calculate amounts related to loans, discounts, rates of return on investments, and stock worth. Students are instructed to submit their assignments on time and in a specific format by the deadline of February 3rd, 2017.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    145 views2 pages

    Assignment 1

    Uploaded by

    Navian Nadeem
    The document contains instructions for Assignment #1 for an engineering economy course. It instructs students to calculate marginal cost, average fixed cost, average variable cost, and average total cost using quantity, fixed cost, and variable cost data provided. It also contains 5 questions asking students to calculate amounts related to loans, discounts, rates of return on investments, and stock worth. Students are instructed to submit their assignments on time and in a specific format by the deadline of February 3rd, 2017.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    (MS291) Engineering Economy

    Instructor: Dr. M. Sabir


    ASSIGNMENT# 1

    INSTRUCTIONS:
    This assignment is for both sections (A & B) students.
    Plagiarized (copied) assignments will not be accepted and will be marked zero.
    Submission date is February 3rd 2017 (Friday) during class timings. No assignment
    will be accepted after deadline.
    Clearly mention your name, Reg No and Section on the title page.
    Assignment should be on A4 size pages; assignments on pages tear out from note
    books will not be accepted.
    There is no need to give assignments in folder.
    Answer all questions.

    1. Using given information of Quantity, fixed costs and variable costs, calculate:
    MC= marginal cost
    AFC= average fixed cost
    AVC= average variable cost
    ATC= average total cost

    Quantity Fixed Variable Total MC AFC AVC ATC


    Cost Cost Cost
    0 100 0

    1 100 40

    2 100 70

    3 100 120

    4 100 180

    5 100 250

    6 100 330

    2. A company borrowed $900,000 for installing energy-efficient lighting and safety


    equipment in one of its manufacturing facility. The terms of the loan were such that
    the company could pay interest only at the end of each year for up to 5 years, after
    which the company would have to pay the entire amount due. If the interest rate on
    the loan was 12% per year and the company paid only the interest for 4 years,
    determine the following:

    1
    a) The amount of each of the four interest payments
    b) The amount of the final payment at the end of year 5

    3. During a recession, the price of goods and services goes down because of low
    demand. A company that makes Ethernet adapters is planning to expand its
    production facility at a cost of $1,000,000 one year from now. However, a contractor
    who needs work has offered to do the job for $790,000 if the company will do the
    expansion now instead of 1 year from now. If the interest rate is 15% per year, how
    much of a discount is the company getting?

    4. Which of the following 1-year investments has the highest rate of return?

    a) $12,500 that yields $1125 in interest,


    b) $56,000 that yields $6160 in interest,
    c) $95,000 that yields $7600 in interest.

    5. As a principal in the consulting firm where you have worked for 20 years, you have
    accumulated 5000 shares of company stock. One year ago, each share of stock was
    worth $40. The company has offered to buy back your shares for $225,000. At what
    interest rate would the firms offer be equivalent to the worth of the stock last year?

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