ECOR 3800 Midterm: Exam-ECOR3800-2011August

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: f e j a q t i " ^ x : o " 1. 1 . " l ) ) " ] , t l 1. List the types of business organization, example of each (b) There are five types of cost that we always consider in our engineering economics analysis, list all of them and support your answer with an example of each. Question 2 (20 marks) (a) you are about to borrow ,000 from a bank at an interest of 97o compounded annually, You are required to make five equal annual repayments in the amount of $ ? per year (find the payment per year), with the first payment occurring at the end of year l. Show the interest payment and principal payment in each year. (b) For the following transactions, draw the c. f. d and find the value of g that makes the deposit series equivalent to the withdrawal series at interest rate of 127o, compounded annually.

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