• University of Maryland, College Park

• ENME 464

ENME 464 Mid-Term 2 Name SoLUTION Problem 1: 20 Problem 2: 17 Problem 3: 25 Problem 4: 6 Problem 5: 20 Problem 6: 12 Total: 100 All problems assume discrete compounding (where applicable) As part of the academic integrity code practiced at the University of Maryland, please copy the statement below on the space provided, and sign and date the statement at the bottom of the page: I pledge on my honor that I have not given or received any unauthorized assistance on this examination (or assignment). Signature: Date: 1 Midterm 2, April 19, 2016 ENME 464 Mid-Term 2 Name Problem 1: [20 points] Terp Valves manufactures zero leakage values for the oil drilling industry. A machine purchased 3 years ago has been depreciated using a 5-year useful life. The book value at the end of year 3 is $30,000. a) (10 points) What is the depreciation charge (per year) in year 3 if straight-line depreciation is assumed and company assumes that the machine is worthless at the end of its 5-year useful life? B-S n 5 D BV = B-+D+