Fall 2025/26 Excel File for IE 1040 Final Exam Copyright 2024 Ka
Final Exam rights reserved. No distribution without written pe
IE 1040 Engineering Economic Analysis
Enter Your Name in cell B5: Junyi Pan
There are 6 questions in this exam…each in a separate tab and labeled. The entire exam is worth 100
points. Read each question carefully and be sure to answer all parts (scroll down each sheet and make
sure you see them all). The point value of each part of each problem is noted.
Make 100% sure you download the file, work on it on your computer, save as you go and pay attention
to where you are saving it.
This exam is open book and notes. You MAY NOT use any other resources other than our book, your
own personal notes, and course materials posted in Canvas. This includes online searches for solved
problems. You MAY NOT share answers via text, email, or other means of communicating with other
persons while you are taking this exam.
Please type your name in cell C14 to attest to the following:
I attest or state that I have completed this exam on my own without input or assistance from any other
person on the problems or questions, other than possibly the course instructor, Dr. Bursic. In addition, I
attest or state that the only resources I have used are those listed as permitted above.
You have 2 hours from the start of your exam to submit this Excel file containing your solutions via the
Canvas link . If you have technical issues or if you are a DRS student that is given extra time, DO NOT
WORRY, the exam will be accepted late with no penalty.
Note that with the exception of questions 4 and 5 you are not required to use the various Excel
functions but you may do so if you prefer. You can write out the formulas using paper and pencil and
use the formulas / tables for solving and then simply enter your answers in the spreadsheet. However,
you MUST SHOW HOW you arrived at your answers for partial credit. Note that you simply need to put
a single quote mark ( ' ) in front of any cell entry to make it a text string! With the exception of
questions 4 and 5, this is not an exam on the use of Excel, it’s an exam on the concepts learned in the
2nd half of our course.
, 40 Final Exam Copyright 2024 Karen M. Bursic, All
No distribution without written permission.
Use this to make sure you have completed all parts:
exam is worth 100 1a, 1b, 2a, 2b, 2c, 3a, 3b, 4a, 4b, 5, 6
ach sheet and make
o and pay attention
an our book, your
arches for solved
icating with other
ance from any other
Bursic. In addition, I
ve.
ur solutions via the
xtra time, DO NOT
arious Excel
per and pencil and
eadsheet. However,
u simply need to put
exception of
pts learned in the
, 1. A popular water and entertainment park company has narrowed a new location down to 3 cities. The initial cost
offers an initial cash incentive (time period 0) to the company for building in their city, 10% of that incentive as a tax
benefits). The park would have to reduce entrance fess for city residents for the 8 years (a cost). The table below su
Location 1
Initial cost (in millions of $s) 38.5
Entrance fee reduction cost ($s per year) 500,000
Annual Revenues (in millions of $s per year) 7.0
Initial cash incentive ($s) 250,000
Property tax reduction ($s per year) 25,000
Sales tax sharing ($s per year) 310,000
a. Using B/C ratio analysis and a 7% MARR determine which location the company should select. (9 points)
Location 1
Annual for initial cost $27,341,956.82
Benefit 7,585,000.0
Cost $27,841,956.82
B/C 0.2724305640547
Location 2 should be selected
b. (Not related to part a.) Other than direct costs and revenues, what types of benefits and disbenefits are often co
least 3 total benefits and/or disbenefits)? (6 points)
Benefits:
Improved public health
Increased accessibility
Environmental preservation
Disbenefits:
Community displacement
Final Exam rights reserved. No distribution without written pe
IE 1040 Engineering Economic Analysis
Enter Your Name in cell B5: Junyi Pan
There are 6 questions in this exam…each in a separate tab and labeled. The entire exam is worth 100
points. Read each question carefully and be sure to answer all parts (scroll down each sheet and make
sure you see them all). The point value of each part of each problem is noted.
Make 100% sure you download the file, work on it on your computer, save as you go and pay attention
to where you are saving it.
This exam is open book and notes. You MAY NOT use any other resources other than our book, your
own personal notes, and course materials posted in Canvas. This includes online searches for solved
problems. You MAY NOT share answers via text, email, or other means of communicating with other
persons while you are taking this exam.
Please type your name in cell C14 to attest to the following:
I attest or state that I have completed this exam on my own without input or assistance from any other
person on the problems or questions, other than possibly the course instructor, Dr. Bursic. In addition, I
attest or state that the only resources I have used are those listed as permitted above.
You have 2 hours from the start of your exam to submit this Excel file containing your solutions via the
Canvas link . If you have technical issues or if you are a DRS student that is given extra time, DO NOT
WORRY, the exam will be accepted late with no penalty.
Note that with the exception of questions 4 and 5 you are not required to use the various Excel
functions but you may do so if you prefer. You can write out the formulas using paper and pencil and
use the formulas / tables for solving and then simply enter your answers in the spreadsheet. However,
you MUST SHOW HOW you arrived at your answers for partial credit. Note that you simply need to put
a single quote mark ( ' ) in front of any cell entry to make it a text string! With the exception of
questions 4 and 5, this is not an exam on the use of Excel, it’s an exam on the concepts learned in the
2nd half of our course.
, 40 Final Exam Copyright 2024 Karen M. Bursic, All
No distribution without written permission.
Use this to make sure you have completed all parts:
exam is worth 100 1a, 1b, 2a, 2b, 2c, 3a, 3b, 4a, 4b, 5, 6
ach sheet and make
o and pay attention
an our book, your
arches for solved
icating with other
ance from any other
Bursic. In addition, I
ve.
ur solutions via the
xtra time, DO NOT
arious Excel
per and pencil and
eadsheet. However,
u simply need to put
exception of
pts learned in the
, 1. A popular water and entertainment park company has narrowed a new location down to 3 cities. The initial cost
offers an initial cash incentive (time period 0) to the company for building in their city, 10% of that incentive as a tax
benefits). The park would have to reduce entrance fess for city residents for the 8 years (a cost). The table below su
Location 1
Initial cost (in millions of $s) 38.5
Entrance fee reduction cost ($s per year) 500,000
Annual Revenues (in millions of $s per year) 7.0
Initial cash incentive ($s) 250,000
Property tax reduction ($s per year) 25,000
Sales tax sharing ($s per year) 310,000
a. Using B/C ratio analysis and a 7% MARR determine which location the company should select. (9 points)
Location 1
Annual for initial cost $27,341,956.82
Benefit 7,585,000.0
Cost $27,841,956.82
B/C 0.2724305640547
Location 2 should be selected
b. (Not related to part a.) Other than direct costs and revenues, what types of benefits and disbenefits are often co
least 3 total benefits and/or disbenefits)? (6 points)
Benefits:
Improved public health
Increased accessibility
Environmental preservation
Disbenefits:
Community displacement
