Classroom Documents

Below are some documents that will be useful in this course. Most of them are example problems that I will use in class.
If you print them out before class (or bring your laptop to class), you won't have to scribble furiously to write down the problems during class.
I will add to this list during the semester, so check back periodically.

 

Chapter 1 - Foundations

FE Reference Handbook (Economics)

Interest Factor Tables from Blank & Tarquin

The Economic Theory of the Location of Railways

Simple Interest Example 1

Simple Interest Example 2

Compound Interest Example 1

Compound Interest Example 2

Cash Inflows and Cash Outflows

Cash Flow Example 1

Assembly Plant Scenario 1

Assembly Plant Scenario 2

Four Savings Scenarios (Cash Flow Diagrams)

Ferryman Example 1 (Cash Flow Diagrams)

Ferryman Example 2 (Net Cash Flow Diagrams)

New Car Example 1 (Cash Flow Diagrams)

Chapter 2 - Interest Factors

A Simple Savings Example

Another Simple Savings Example

Yet Another Simple Savings Example

Dealing with Significant Digits

Four Savings Scenarios (REPRISE)

Down Payment Example 1 (Uniform Series Sinking Fund)

Retirement Example 1 (Uniform Series Present Worth)

Taco Truck Example 1 (Capital Recovery)

Retirement Example 2 (Arithmetic Gradient Present Worth)

Retirement Example 3 (Arithmetic Gradient Future Worth)

Retirement Example 4 (Geometric Gradient Present Worth)

Football Example 1 (Geometric Gradient Series)

Retirement Example 5 (Geometric Gradient Future Worth)

The Crushingly Expensive Mistake Killing Your Retirement

College Savings Example 1 (Shifted Series)

College Savings Example 2 (Shifted Series)

Retirement Example 6 (Compound Series)

Acme Widget Example 1 (Compound Series)

Problem 2-109 (Compound Series)

Mortgage Example 1 (Amortization)

Mortgage Example 1 Table

Mortgage Example 1 Solution

Mortgage Example 2 (Refinancing)

Chapter 3 - Nominal and Effective Interest Rates

Compound Interest Example 1 (REPRISE)

Comparing Interest Rates (Effective Interest)

APY Example

Savings Example 1 (PP Equal To CP)

Savings Example 2 (PP Greater Than CP)

TDOT Example 1 (Non-Annual Series)

TDOT Example 2 (Non-Annual Series)

APR Example

Continuous Compounding

Decoding Interest Rate Statements

Downpayment Example 2

Video Card Example 1

Chapter 4 - Present Worth Analysis

Sources of Capital

Acme WACC Example 1

Acme WACC Example 2

Opportunity Cost Example

Cost Projects vs Revenue Projects

Pigs-R-Us Example 1 (Present Worth Method)

Pigs-R-Us Example 2 (Present Worth Method)

Acme Widget Example 2 (Revenue Alternatives)

Recycling Truck Example 1 (Service Alternatives)

Bonds

Bond Example 1 (Present Worth)

Corporate Bond Ratings

Bond Example 2 (Future Worth)

Motor Grader Example 1 (Unequal Lives)

Motor Grader Example 2 (Unequal Lives)

Motor Grader Example 3 (Unequal Lives)

Motor Grader Example 4 (LCM Method)

Capitalized Cost

Sweepstakes Example 1 (Capitalized Cost)

Scholarship Example 1 (Capitalized Cost)

Lab Renovation Campaign (Capitalized Cost)

Gazebo Example 1 (Capitalized Cost)

Four Revenue Projects

Four More Revenue Projects

Chapter 5 - Annual Worth Analysis

Recycling Truck Example 1 (REPRISE)

Ferryman Example 2 (Revenue Project AW)

Four More Revenue Projects (REPRISE)

Motor Grader Example 1 (REPRISE)

Warehouse Example (Cost Alternatives)

Gazebo Example 1 (REPRISE)

Chapter 6 - Rate of Return Analysis

Rate of Return Introduction

Mortgage Example 1 (REPRISE)

Pigs-R-Us Example 1 (REPRISE)

Lockheed Martin Example 1 (ROR Analysis)

Pigs-R-Us Example 2 (REPRISE)

Lockheed Martin Example 2 (MIRR Analysis)

Yield to Maturity Definition

Bond Example 3 (Yield to Maturity)

Rent-To-Own Example 1 (True Cost of a Loan)

Rent-To-Own Example 2 (True Cost of a Loan)

Chapter 7 - Benefit/Cost Analysis

Flood Control Act

FHWA Traffic Accident Costs

Railroad Crossing Example (Benefit-Cost Analysis)

OMB Circular A-94

OMB CIrcular A-94 Appendix C

Blood Alley Example (B-C of Permanent Projects)

Chapter 8 - Breakeven and Payback Analysis

Coffee Shop Example (Breakeven Analysis)

PurWater Example (Breakeven Analysis)

ACME Trailer Example (Breakeven Analysis)

Lockheed Martin Example 3 (Breakeven Analysis)

Lockheed Martin Example 4 (Breakeven Analysis)

Ferryman Example 3 (Breakeven Analysis)

Honda Gas-Hybrid Example 1 (Breakeven Analysis)

Honda Gas-Hybrid Example 2 (Breakeven Analysis)

Widget Example 3 (Breakeven Analysis)

Combine Harvester Example (Buy or Lease)

Pigs-R-Us Example 4 (Payback Analysis)

Pigs-R-Us Example 5 (Payback Analysis)

Lockheed Martin Example 5 (Payback Analysis)

Pigs-R-Us Example 6 (Payback Analysis)

Lockheed Martin Example 6 (Payback Analysis)

Chapter 12 - Depreciation

CNC Example 1 (SL Depreciation)

Declining Balance Depreciation

CNC Example 2 (DDB Depreciation)

MACRS Recovery Periods

MACRS Depreciation Rates

CNC Example 3 (MACRS Depreciation)

CNC Depreciation Slides

Chapter 14 - Dealing with Uncertainty

Probability Lecture Slides

College Savings Example 4 (Uncertainty)

Pigs-R-Us Example 7 (Uncertainty)

College Savings Example 7 (Uncertainty)