Jordan University of Science and TechnologyFaculty of Engineering

Industrial Engineering DepartmentIE 341: Engineering economy

First Semester 2011/2012

Name :…………………………. Quiz Eng. Maysa’a FaroonNO..………………………… : #

Q1: a small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the 4th year will result in a profit of $5,500 each year from the 5th year to the 15th year. At the end of 15th year the company can be soled for $33,000.Drow the cash flow diagram then write down the equation of

1. IRR Write the equations only2. FW(MARR =12)3. ERR when ε = 12%