MN220 Engineering Economic Analysis Midterm Exam (C) Fall 2017 (1) Multiple choi

Question

MN220 Engineering Economic Analysis Midterm Exam (C) Fall 2017 (1) Multiple choice questions (10 questions, total point is 60, 6 point (Please note that if your results are within ±1, or t$1, or t04% of t given in the answer, you have to choose the closest one.) 1 Fo the caeh tow dagyam shown beliow, which anuer is comect for the present val ps? i" 10% 150 150 100 100 a Ps $15OPF,10%,5). 15OPF,10%.4). 100(PF,10%2) + 100(PF,10%,1) b. Ps $10OPF. 10%.1) + 100PF. 10%,2) + 150(PF,10%,4) + 150(PF,10%,5) c. Ps S 150(PIA10%2) +10OPIA, 10%,2) (PF,10%,2) d a andc only s. None of above 2 The average price of a new home is $200,000 If new home prices are increasing at year, how much will a new home cost in 10 years? a $258,783 28 b $325,778.93 c $241 904 95 d $358 169 54 e None of above

Explanation / Answer

(1) THe answer is

P = $ 150 (P/F, 10% ,5) + $ 150 (P/F, 10% ,5) + 100 (P/F, 10%, 2) + 100 (P/F, 10% ,1)

Option 1 is correct.

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