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A mock exam for the engineering economics course (cpe 522) focusing on capital budgeting and investment analysis. It includes two problems: the first problem deals with a new chemical process investment and the second problem concerns the production of a proprietary excipient for a drug formulation. Students are required to calculate the net present value, internal rate of return, and break-even point to determine if the investments are profitable.
Typology: Exams
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Operating Working Deprec. Year Income costs Investment Salvage Capital Factor 0 $2,400, 1 $200,000 $100,000 $50,000 0. 2 $1,000,000 $200,000 0. 3 $1,200,000 $240,000 0. 4 $1,400,000 $260,000 0. 5 $1,500,000 $300,000 0. 6 $1,600,000 $350,000 $60,000 $50,000 0.
Year 0 1 2 3 4 5 6
benefits - disbenefits - M&Ocosts