1. Jordan University of Science and Technology
Faculty of Engineering
Industrial Engineering Department
IE 341: Engineering economy
First Semester 2011/2012
Name :…………………………. Quiz Eng. Maysa’a Faroon
..………………………… : #NO
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 only
2. FW(MARR =12)
3. ERR when ε = 12%