thank you for the effort in simplifying this sample question. I actually recalled all my knowledge just in watching this simple vide. keep up the good work you deserve a trophy.
Thank you for watching, I am happy to help! Make sure you sign up for some free practice problems and tips on how to tackle this exam at www.engenieer.com! Good luck with your studying!
finished this fe econ playlist. helped me with the basics of econ for the civil pe exam. moving on to the tough civil pe, morning questions study in ppi books. thank you for your effort!
Where exactly to use EUAC or convert everything to P to find the total P? Sometimes I get confused and ended up using the others and getting wrong answers.
Can u please solve question 9 from engineering economics chapter in the practice problems which asks to find the EUAC giving 2 annual maintenance which differs from year 1-8 as 275$ and year 9-13 as 425$. Initial cost=5500$, Salvage =3100$ and interest rate=6% .Thanks in advance
Why is the interest rate applied to the salvage income when the salvage is received at the end of the 8 years? There is no way to accrue any interest on the salvage income. Logically(My own logic anyway) this would mean to include the salvage you would divide it by 8 to get A.
Hello Andrea, that is great question, salvage value is estimated resale value, you should include it when you are calculating annual cost, present value or future value. All cost should be accounted for, the only thing, when you have a salvage value, it should be positive because you will be making that money, you are not spending it. I hope this helps. Thank you for watching and good luck with your studying!
@@Genieprep Salvage value is a reduction to initial cost (considering time value of money of course) Example: Initial cost - salvage(P/F,i,n) = PW(A/P,i,n) = EUAC
Hey kenza, thanks for the problems! All problems becomes more easier to me after i see your videos because you just do it easily and not boring too :). Could you do one problem on how to choose equipment given their first cost, Annual Cost, and Salvage cost? I found one question on FE practice, i did the problem by finding the uniform annual cost and i got the answer. But the solution is done by finding present worth of each equipment.
Hello Selam, if you are talking about problem 22 on the NCEES practice exam, that is because the question asks to compare the present worth for each equipment, that is why they solve for the present worth. I hope this makes sense and good luck with your studying!
@@Genieprep Hey Kenza, BTW i have scheduled to take the exam on Dec 23. I am a little nervous but i'm trying my best and also you are helping too so i'm so grateful.
@@selamshumet5950 I know exactly what you are going through! This exam can be overwhelming and intimidating, but you got this! Just do as many practice problems as you can, watch some videos and I think you are going to do great! I am also working on FE bites course, which will consist of FE problems, covering all civil topics. Let me know if you are interested and I will let you know when it is ready! Good luck with your studying and keep up the good work!
Thank you for your help! I was just wondering why when you did the calculation for A given P , you used n=8 even though this outflow occurred in year zero? Thanks
EUAC values are positive because in Annual worth problems the signs are flipped. Cost become positive and savings become negative. Either way u get the same answer. If it's a fill in the blank then you want to put in the positive answer because the negative answer will be wrong.
thank you for the effort in simplifying this sample question. I actually recalled all my knowledge just in watching this simple vide. keep up the good work you deserve a trophy.
Thank you for watching, I am happy to help! Make sure you sign up for some free practice problems and tips on how to tackle this exam at www.engenieer.com! Good luck with your studying!
finished this fe econ playlist. helped me with the basics of econ for the civil pe exam. moving on to the tough civil pe, morning questions study in ppi books. thank you for your effort!
Where exactly to use EUAC or convert everything to P to find the total P? Sometimes I get confused and ended up using the others and getting wrong answers.
thanks! just curious why do you not multiply the $700 maintenance fee by 8 since it’s 8 years?
Hi, if machine economic life is unknown how to solve in sum of years digit method?
renewal cost of a project should be considered as output but how does it fit in the equivalent uniform annual cost formula ?
Can u please solve question 9 from engineering economics chapter in the practice problems which asks to find the EUAC giving 2 annual maintenance which differs from year 1-8 as 275$ and year 9-13 as 425$. Initial cost=5500$, Salvage =3100$ and interest rate=6% .Thanks in advance
Very clear and helpful, thanks so much
Why is the interest rate applied to the salvage income when the salvage is received at the end of the 8 years? There is no way to accrue any interest on the salvage income. Logically(My own logic anyway) this would mean to include the salvage you would divide it by 8 to get A.
Hi, when calculating the annual cost, why do we account for the salvage value if is not a cost?
Hello Andrea, that is great question, salvage value is estimated resale value, you should include it when you are calculating annual cost, present value or future value. All cost should be accounted for, the only thing, when you have a salvage value, it should be positive because you will be making that money, you are not spending it. I hope this helps. Thank you for watching and good luck with your studying!
@@Genieprep Salvage value is a reduction to initial cost (considering time value of money of course) Example: Initial cost - salvage(P/F,i,n) = PW(A/P,i,n) = EUAC
@@robbyrains agree
Hey kenza, thanks for the problems! All problems becomes more easier to me after i see your videos because you just do it easily and not boring too :). Could you do one problem on how to choose equipment given their first cost, Annual Cost, and Salvage cost? I found one question on FE practice, i did the problem by finding the uniform annual cost and i got the answer. But the solution is done by finding present worth of each equipment.
Hello Selam, if you are talking about problem 22 on the NCEES practice exam, that is because the question asks to compare the present worth for each equipment, that is why they solve for the present worth. I hope this makes sense and good luck with your studying!
enGENIEer ya it’s clear thanks!
@@Genieprep Hey Kenza, BTW i have scheduled to take the exam on Dec 23. I am a little nervous but i'm trying my best and also you are helping too so i'm so grateful.
@@selamshumet5950 I know exactly what you are going through! This exam can be overwhelming and intimidating, but you got this! Just do as many practice problems as you can, watch some videos and I think you are going to do great! I am also working on FE bites course, which will consist of FE problems, covering all civil topics. Let me know if you are interested and I will let you know when it is ready! Good luck with your studying and keep up the good work!
Thank you for your help! I was just wondering why when you did the calculation for A given P , you used n=8 even though this outflow occurred in year zero? Thanks
Thank you
EUAC values are positive because in Annual worth problems the signs are flipped. Cost become positive and savings become negative. Either way u get the same answer. If it's a fill in the blank then you want to put in the positive answer because the negative answer will be wrong.
I hope that answers your question.
Ncees hb 1.1, p. 37, 46.
For civil pe exam study.
. Compare the machines below using present worth analysis (12 Pts)
Machine A Machine B
First cost 25,000 30, 0000
Annual cost 10,000 10,000
Salvage value 7,000 4,000
Life, year 10 10
Interest 11%/yr 11% /yr
Great Video. Thanks.
thank you so much.
Thx
Thanks!
Great explanation. Thank you!