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Engineering Economy, 5/e
Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso


Section A: Solving Typical FE Problems

How to use this section: Each problem-type (What to do) is labeled and a solution approach (How to do it) is detailed. A reference is provided to the appropriate section(s) in the text Blank and Tarquin, Engineering Economy, 5th edition. These section references should be used for reviewing the text material.

Solved examples of FE-like problems using the solution approach are presented, followed by a reference to related FE review problems included in Section B of this material. Once you understand the solution approach here, you should be able to proceed to the referenced FE review problems. A good strategy is to cover several of the sections here, then go to the FE review problems in Section B to determine how well you can do.

  1. What to do: Find P or F from Single Amounts
  2. What to do: Find P from a Uniform Series (A) and Vice Versa
  3. What to do: Find F from a Uniform Series (A) and Vice Versa
  4. What to do: Find P, A, or F from Uniform Gradient Cash Flows
  5. What to do: Identify Nominal and Effective Interest Rates
  6. What to do: Find an Effective Interest Rate from a Nominal Rate and Vice Versa
  7. What to do: Find P or F for Single Payments and Nominal Interest Rates
  8. What to do: Calculations Involving Uniform Series and Nominal Interest Rates
  9. What to do: Find P, A, or F from Non-conventional Uniform Series Cash Flows
  10. What to do: Compare Alternatives by PW or AW Analysis
  11. What to do: Find the Capitalized Cost of Infinite Cash Flow Sequence
  12. What to do: Find the Capitalized Cost of Finite Cash Flows
  13. What to do: Find the Benefit/Cost Ratio
  14. What to do: Find the Present Worth of a Bond
  15. What to do: Find the Present Worth When Inflation is Considered
  16. What to do: Determine Asset Depreciation by SL or MACRS Methods
  17. What to do: Find Asset Book Value by SL or MACRS
  18. What to do: Find the Breakeven Point