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Questions and Answers
Which factor determines the future value of a sum of money in a compound interest calculation?
Which factor determines the future value of a sum of money in a compound interest calculation?
In a cash flow diagram, what does a downward-pointing arrow typically represent?
In a cash flow diagram, what does a downward-pointing arrow typically represent?
If you invest $5,000 in a savings account with an annual interest rate of 5% compounded annually, how much money will you have after 3 years?
If you invest $5,000 in a savings account with an annual interest rate of 5% compounded annually, how much money will you have after 3 years?
What does the term "discounting" refer to in the context of time value of money?
What does the term "discounting" refer to in the context of time value of money?
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What is economic equivalence in the context of financial analysis?
What is economic equivalence in the context of financial analysis?
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Which of the following represents the future value of a single sum of money?
Which of the following represents the future value of a single sum of money?
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Economic equivalence allows you to compare:
Economic equivalence allows you to compare:
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Which of the following factors make money have time value?
Which of the following factors make money have time value?
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If you invest $1,000 at an annual interest rate of 5%, how much will you have after 5 years using simple interest?
If you invest $1,000 at an annual interest rate of 5%, how much will you have after 5 years using simple interest?
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Which financial metric helps determine the regular payment amount required to repay a loan over a specific period in equal installments?
Which financial metric helps determine the regular payment amount required to repay a loan over a specific period in equal installments?
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In engineering economics, what is the "principal amount" in the context of a loan repayment plan?
In engineering economics, what is the "principal amount" in the context of a loan repayment plan?
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What is the primary purpose of a repayment plan in engineering economics?
What is the primary purpose of a repayment plan in engineering economics?
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What is the Time Value of Money (TVM) concept primarily concerned with?
What is the Time Value of Money (TVM) concept primarily concerned with?
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What is the primary purpose of a cash flow diagram in financial analysis?
What is the primary purpose of a cash flow diagram in financial analysis?
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A graphical representation of cash transactions over time is called
A graphical representation of cash transactions over time is called
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Which financial principle does time value of money rely on?
Which financial principle does time value of money rely on?
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If you expect to receive $10,000 in two years, and the discount rate is 8%, what is the present value of that amount?
If you expect to receive $10,000 in two years, and the discount rate is 8%, what is the present value of that amount?
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In a cash flow diagram, what does an arrow pointing upward typically represent?
In a cash flow diagram, what does an arrow pointing upward typically represent?
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In a cash flow diagram, how is time typically represented on the horizontal axis?
In a cash flow diagram, how is time typically represented on the horizontal axis?
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What is compound interest?
What is compound interest?
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There is Project A. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $50,000, and Annual revenues inus expenses is $20,000. There is no more market value at the end of useful life. What is the PW of the Project A
There is Project A. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $50,000, and Annual revenues inus expenses is $20,000. There is no more market value at the end of useful life. What is the PW of the Project A
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There is Project B. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $70,000, and Annual revenues minus expenses is $25,000. There is no more market value at the end of useful life. What is the PW of the Project B
There is Project B. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $70,000, and Annual revenues minus expenses is $25,000. There is no more market value at the end of useful life. What is the PW of the Project B
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There is Project C. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $90,000, and Annual revenues minus expenses is $30,000. There is no more market value at the end of useful life. What is the PW of the Project C
There is Project C. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $90,000, and Annual revenues minus expenses is $30,000. There is no more market value at the end of useful life. What is the PW of the Project C
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There is Project D. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $110,000, and Annual revenues minus expenses is $35,000. There is no more market value at the end of useful life. What is the PW of the Project D
There is Project D. If the MARR is 12% per year and the analysis period is 5 years. The capital investment is $110,000, and Annual revenues minus expenses is $35,000. There is no more market value at the end of useful life. What is the PW of the Project D
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