 
Homework assignments posted here are subject to correction in class or
through other means. Problems as assigned here are for your convenience
but are not a substitute for obtaining assignments in class.
Assignments as issued in class supersede these assignments unless otherwise
noted.
Homework Assignment: 1 2
3 4 5 6
7 8 9 10
11
Decision Time
From your textbook:
1.4, 1.6, 1.12, 1.16
Assignment Objectives:
 Practice making economically sound decisions (all) 
 Evaluate economic problems without time as a consideration (all) 
 Consider the role of probabilities of multiple outcomes in making
economic decisions. (1.16) 
Reading Assignments:
 Thursday (8/23) Ch. 2 pp. 3048 Time Value of Money, Probabilities 
 Tuesday (8/28) Ch. 2 pp. 4855 HW 1 Due, HW2 Assigned 
The Most Interesting of All Homework
From your textbook:
2.5, 2.9, 2.15, 2.24, 2.28, 2.37,
2.41, 2.47
Additional Practice Problems:
2.8, 2.14
Assignment Objectives:
 Determine present values, future values, and annual values of various
cash flows 
 Use fundamental interest formulae to solve economic problems 
 Apply interest rates to periods other than a year using effective
interest rates 
Reading Assignments:
 Thursday (8/30) Ch. 2 pp. 5565 Additional cash flow equivalencies 
 Tuesday (9/04) More equivalency problems
HW 2 Due, HW3 Assigned

This Might Be Even More Interesting, If Not for Inflation
From your textbook:
2.56, 2.59, 2.67, 2.73, 2.77, 2.80
3.1,
3.3,
3.6,
3.8
Note that the loan in problem 67 is $7000 as stated the first time in the
problem, not $6000 as indicated later in the same statement. Foreign
editions may or may not contain this typographical error.
Assignment Objectives:
 Apply concepts of equivalence when comparing multiple options (2.56,
2.73, 2.77, 2.80) 
 Determine present values, future values, and annual values of various
cash flows (2.59, 2.73, 2.77, 2.80) 
 Apply interest rates to periods other than a year using effective
interest rates (2.67) 
 Calculate continuously compounded interest (2.80) 
 Apply understanding of inflation to cost analysis (3.1, 3.3, 3.6, 3.8) 
Reading Assignments:
 Thursday (9/6) Ch. 3 pp. 97105 Bonds 
 Tuesday (9/11) Ch. 4 pp. 108127 Methods of comparison
HW 3 Due, HW 4 Assigned

You Are A Financial Mogul In The Making
From your textbook:
3.9*, 3.15, 3.17, 3.21, 3.26
4.1, 4.6, 4.10, 4.15, 4.16
* Note that the year 2 labor cost in problem 3.9 should be $1500 instead
of $15,000
Assignment Objectives:
 Apply understanding of inflation to cost analysis (3.9) 
 Evaluate cash flows with variable interest rates (3.9) 
 Perform economic analyses of bond investments and loans (3.15, 3.17,
3.21) 
 Apply interest rates to periods other than a year using effective
interest rates (3.21) 
 Analyze the mathematical properties of economic factors (3.26) 
 Assess multiple opportunities using different methods of comparison,
including PW, AW, FW, IRR, ERR, Ratios, and Payback (4.1, 4.6, 4.10) 
 Evaluate capitalized cost (4.15, 4.16) 
Reading Assignments:
 Thursday (9/13) Ch. 4 pp. 128134 Use of spreadsheets for comparison

 Tuesday (9/18) Ch. 5 pp. 143154 Comparing alternatives
HW 4 Due, HW5 Assigned 
How To Be an Effective Speaker When Saying AW, ERR, FW,
Etc.
From your textbook:
4.20, 4.23, 4.24, 4.27, 4.30
Assignment Objectives:
 Assess multiple opportunities using different methods of comparison,
including PW, AW, FW, IRR, ERR, Ratios, and Payback (4.20, 4.23) 
 Evaluate capitalized cost (4.24, 4.27) 
 Utilize spreadsheets in economic calculations (4.30) 
Reading Assignments:
 Thursday (9/20) Ch. 5 pp. 143176 Comparing alternatives

 Tuesday (9/25) Ch. 5 pp. 176202 Supplementary Analyses
HW5 Due, HW6 Assigned 
 Thursday (9/27) Ch. 5 pp. 202225 Analytical Conclusions
Stock Market Game Report 1 Due 
 Tuesday (10/02) EXAM 1 (chapters 14)

For the sake of comparison...
From your textbook:
5.4,5.10, 5.13, 5.16, 5.20, 5.21,
5.27(a, b, c, h), 5.30
Assignment Objectives:
 Determine cash flows for comparing systems of lifetimes using various
planning horizons (5.4) 
 Determine viable alternatives and develop cash flow profiles for each
alternative (5.10) 
 Determine the cost of funding and use it to develop a MARR (5.13,
5.16, 5.20) 
 Apply both ranking and incremental approaches to comparing
alternatives using the PW, FW, AW, IRR, ERR, SIR, PB, and DPB methods
(5.21, 5.27, 5.30) 
Reading Assignments:
 Thursday (9/27) Ch. 5 pp. 202225 Analytical Conclusions
Stock Market Game Report 1 Due 
 Tuesday (10/02) EXAM 1 (chapters 14) 
 Thursday (10/04) Ch. 6 pp. 256262 Depreciation
HW6 Due, HW7 Assigned 
You can’t say this assignment doesn’t
compare...
From your textbook:
5.43, 5.45, 5.46, 5.70(a, c, f), 5.82, 5.86,
5.93, 5.98, 5.104
Assignment Objectives:
 Apply breakeven analysis to time sensitive economic alternatives
(5.43) 
 Apply sensitivity analysis to economic alternatives (5.45, 5.46) 
 Analyze systems involving no positive cash flows (5.70, 5.82, 5.86) 
 Apply the cash flow, outsider viewpoint, and optimum replacement
interval approaches to replacement analysis (5.93, 5.98, 5.104) 
Reading Assignments:
 Thursday (10/04) Ch. 6 pp. 256262 Taxes 
 Tuesday (10/09) Ch. 6 pp. 262281 Depreciation

 Thursday (10/11) Fall Break 
 Tuesday (10/16) Ch. 6 pp. 281308 Taxes and Depreciation
HW7 Due, HW8 Assigned 
I hope you truly depreciate what this
assignment does for you
From your textbook:
6.8, 6.13, 6.22, 6.26(a,b), 6.38,
6.41(a,b), 6.44, 6.58
Assignment Objectives:
 Prepare depreciation schedules using straightline, declining balance,
and SOY methods with and without switching (6.8) 
 Utilize MACRSGDS and ADS allowances to prepare depreciation schedules
(6.13, 6.22) 
 Apply depreciation schedules to determine tax impact and construct
ATCF schedules (6.26) 
 Determine tax liability for simple cases according to IRS rules (6.
38. 6.41, 6.44) 
 Combine tax and inflation effects to determine ATCF and compare
options using both TC and CW analysis (6.58) 
Reading Assignments:
 Thursday (10/18) Ch. 7 pp. 319330 Public Project Analysis 
 Tuesday (10/23) Ch. 7 pp. 330352 BenefitCost Analysis
HW8 Due, HW9 Assigned 
This Assignment is not a Public Project
From your textbook:
7.5,
7.9, 7.10, 7.19, 7.20, 7.24, 7.25
Assignment Objectives:
 Use benefitcost analysis to compare alternatives (7.5, 7.9, 7.10,
7.19, 7.20, 7.24) 
 Use costeffectiveness analysis to compare alternatives (7.25) 
Reading Assignments:
 Thursday (10/25) Ch. 8 pp. 381399
Accounting Principles,
Stock MidGame Report Due

 Tuesday (10/30)
No class meeting, HW 9 Due,
HW 10 Assigned

 Thursday (11/01)
Ch. 18 Eschenbach Uncertainty and Probability 
Back to Top
Homework #10 (Due November 13, 2007)
Make certain you account for all of your solutions
From your textbook:
8.8, 8.9, 8.11,
8.17, 8.19, 8.21
Additional Recommended Problems:
8.14, 8.15, 8.20, 8.22
Assignment Objectives:
 Apply costing and estimating principles to perform economic analyses
(8.8, 8.15) 
 Distinguish between fixed and marginal costs and use in economic
analyses (8.9) 
 Optimize profits using economic principles (8.11, 8.14) 
 Prepare income statements and balance sheets to demonstrate
understanding of basic accounting principles (8.17, 8.19) 
 Perform calculations involving accounting measures of performance
(8.20) 
 Determine appropriate selling price based on cost and production
estimates (8.21) 
 Determine overhead rates for accounting purposes (8.22) 
Reading Assignments:

Tuesday (11/06)
No class meeting, AIChE Annual Meeting


Thursday (11/08)
No class meeting, AIChE Annual Meeting


Tuesday
(11/13)
Ch. 18 Eschenbach Uncertainty and Probability, Decision
Trees, HW 10 Due, HW 11 Assigned

What are the chances you can get all of these correct?
From Eschenbach:
18.9, 18.12, 18.14, 18.15, 18.20, 18.24,
18.25
Assignment Objectives:
 Evaluate alternatives accounting for probabilistic descriptions of
outcomes and risk (18.9, 18.12, 18.14, 18.15, 18.20) 
 Use decision trees in evaluating alternatives (18.24, 18.25) 
 Use the efficient frontier to compare alternatives (18.25) 
Reading Assignments:

Thursday (11/15)
Monte Carlo Simulations


Tuesday (11/20)
Exam 2, Chapters 58


Thursday (11/22)
No class meeting, Thanksgiving


Tuesday (11/27)
Simulations in Excel


Thursday (11/29)
Simulation Workshop,
HW 11 Due


Tuesday (12/04)
Project Presentation


Thursday (12/06)
Excel Team Exercise,
Final Stock Game Report Due


Friday (12/07)
Project Report Due


Thursday (12/13)
Comprehensive Final Exam
10:4512:45

