Prelim Exam - Engineering Economics

An electric power plant uses solid waste for fuel in the production of electricity. The cost y in dollars per hour to produce electricity is , where X is in megawatts. Revenue in dollars per hour from the sale of electricity is  . Find the value of x that gives maximum profit.

The fixed costs incurred by a small genetics research lab are $(200,000-30N) per year. Variable costs are (60+(N/2))% of the annual revenue. If annual revenue is $300,000, the annual profit/loss is most nearly?

In a gold mining area in Davao the ore contains, on the average one ounce of gold per ton. One method of processing “A” costs P(1,500-N) per ton and recovers 90% of the gold. Another method "B" costs only P(1,200+N) per tom and recovers 80% of the gold. If gold can be sold for P4,000 per ounce, which method is better and by how much?

Five years ago, a house was purchased for P34,000. If it is sold today for P(50,000+20N), what is the rate of appreciation of its value.

An amount of P3,000 is invested for (9+(N/2)) years at 6% compounded quarterly. Determine the amount of interest earned by the investment.

Optimal volume (demand) occurs when total costs equal total revenues. Is it true or false?

A related sunk cost will normally affect the prospective cash flows associated with a situation. Is it true or false?

A nonrefundable cash outlay (e.g., money spent on a passport) is an example of an opportunity cost. Is it true or false?