Economic

CEGR 2102 Engineering Economics

Fall 2013

Project 2: Excel Project

Due October 21, 2013

Listed below are three projects with their revenues listed per year. For each project, create a MS Excel spreadsheet to determine its Net Present Value and find
ALL
Internal Rate of Return (IRR) values. Show graphically Interest versus Present Worth. Each project scenario should be on a separate worksheet within the one MS Excel file. You will submit the file electronically on Moodle for Project 2.

Year

Case 1 (Cash Flow $)

Case 2 (Cash Flow $)

Case 3 (cash Flow $)

0

-1000

-6000

-1500

1

1000

-3000

6500

2

750

15000

-8200

3

500

2000

3300

4

250

5000

-1000

5

2000

12000

-500

Your MARR is 10%. Compare your spreadsheet results with hand calculations (show hand calculations on green engineering paper). Indicate whether each project met your MARR. Hand calculations shall be turned in on the due date.