Take-home Quiz 2 (Fall 2023 - 2024)
Take-home Quiz 2 (Fall 2023 - 2024)
Take-home Quiz 2 (Fall 2023 - 2024)
School of Engineering
Civil Engineering Department
CE 0901420 Engineering Economy Fall, 2023 – 2024
Take-home Quiz Due Date: January 6th, 2024
Name: Student Number:
Instructions
- This assignment (take-home quiz) is worth 15 points and contains 2 problems.
- This is an individual assignment (no groups). Any signs of cheating will result in a zero
score for this assignment and may result in an F grade in the class.
- Use Microsoft Excel, and ensure your work is well-organized and presented neatly.
Messy work will not receive the full mark even if the math is correct.
- Print your name/student number, save the file as a PDF document or keep it as an Excel,
and upload it to eLearning (scanned copies will not be accepted, you can upload your
spreadsheet work).
- The deadline for submission is at 11:55 pm on January 6th, 2024. Late submissions
will receive a zero score.
Problem 1
Using Microsoft Excel, create an investment cash-flow diagram that will have a present worth of
zero using MARR = 10%. The study period needs to be exactly 12 years and each year should
have at least one unique cash flow that is different from the cash flows over the other years. Your
answer should contain a table showing the cash flows for each year and a graphical
representation of the cash flows (cash-flow diagram).
Problem 2
Groundwater wells are known to begin pumping sand once it becomes exploited (old), and this
may damage the subsequent water treatment processes. To solve this problem, two alternatives
are proposed:
- A new well can be drilled at a capital cost of $385,000 with minimal operating and
maintenance expenses of $20,500 per year.
- A settling tank can be constructed ahead of the treatment processes which will cost
$190,000 to build and $32,100 per year to operate and maintain.
The salvage value of either option at EOY 20 is 10% of the capital investment. Using a MARR of
7%:
(a) Which alternative is better for the 20-year study period (using the present worth method)?
(b) Confirm the answer of (a) using the future worth method (state the future worth for each
of the alternatives and make a decision based on these values)?