Engineering Economy Application Designed to help engineering students to solve Engineering Economics problems. This Application Contain three main parts: I. Compound Interest Calculator II. Solving Series Problem III. Combined Uniform and Gradient Series

1. Yarmouk University
Hijjawi Faculty for Engineering Technology
Industrial Engineering Department
Android Application for the Engineering Economy
BY:
# Name
1 Hamza M. Al-Jaghbeer
2 Mhammd A. Smadi
SUPERVISOR:
Dr. Mahmoud Al-Mistarihi
Yarmouk University
Irbid, Jordan
May, 2016

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Acknowledgement
We warmly thank and deeply appreciate our
supervisor:
Dr. Mahmoud Al-Mistarihi
For his guidance, interest, helpful, valuable
advice and for his special strategies in making
our work an enjoyable one.

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Table of Contents
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IInnttrroodduuccttiioonn.................................................................................................................................6
1.1 Introduction ………...........................................................................................6
1.2 Aim of Project……… ........................................................................................7
1.3Work Schedule ……… .......................................................................................7
1.4 Report layout …….............................................................................................7
CCChhhaaapppttteeerrr 222
Android Application Review......................................................................................................8
2.1 Introduction ………...........................................................................................8
2.2 Compound Interest Calculator ………..........................................................10
2.3 Solving Series Problem ……….......................................................................12
2.3.1 Solving Bank Balance Problems ……….................................................13
2.3.2 Measures of Worth (Present Worth (PW))……… ................................15
2.3.3 Combined Uniform and Gradient Series ………...................................17
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3.1 Introduction………..........................................................................................19
3.2 Compound Interest Tables ……….................................................................19
3.3 Solving Series Problem………........................................................................21
3.3.1 Present worth ……… ...............................................................................22
3.3.2 Future worth ……….................................................................................22
3.3.3 Combined Uniform and Gradient Series ………...................................23
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CCoonncclluussiioonn .................................................................................................................................36
44..11 CCoonncclluussiioonn ...........................................................................................................................36
4.2 References............................................................................................................................37

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List of Figures
Figure No. Caption Page No.
Figure 2.1 Application interface 7
Figure 2.2.1 Compound Interest Table Examples (8%) 8
Figure 2.2.2 Compound Interest Calculator 8
Figure 2.3.1 Cash Flow Diagram (Example) 9
Figure 2.3.1.1 Present worth (Ex) 9
Figure 2.3.1.2 Future worth (Ex) 10
Figure 2.3.2 Measures of Worth 11
Figure 2.4 Combined Example 12
Figure 2.4.1 Combined Uniform and Gradient Series 12
Figure 3.2 Compound Interest Table (10%, 15 years) 13
Figure 3.3.1 Present worth Example 14
Figure 3.3.2 Future worth Example 14
Figure 3.3.3.1 Combined Uniform and Gradient Series PW 15
Figure 3.3.3.2 Combined Uniform and Gradient Series FW 15
List of Tables
Table No. Caption Page No.
Table 2.3.2 Measures of Worth (Example) 11
Table 3.2 Compound Interest Table using Microsoft Excel 13
Table 3.3.1 Present worth Example 14
Table 3.3.2 Future worth Example 14
Table 3.3.3 Combined Uniform and Gradient Series 15

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Chapter 1 Introduction
1.1 Introduction
Android is a mobile operating system (OS) currently developed by
Google, based on the Linux kernel and designed primarily for touch screen mobile
devices such as smart phones and tablets. Android's user interface is mainly based
on direct manipulation, using touch gestures that loosely correspond to real-world
actions, such as swiping, tapping and pinching, to manipulate on-screen objects,
along with a virtual keyboard for text input. In addition to touch screen devices,
Google has further developed Android TV for televisions, Android Auto for cars,
and Android Wear for wrist watches, each with a specialized user interface.
Variants of Android are also used on notebooks, game consoles, digital cameras,
and other electronics.
Android has the largest installed base of all operating systems of any kind. Android
has been the best selling OS on tablets since 2013, and on smart phones it is
dominant by any metric
Android's source code is released by Google under open source licenses, although
most Android devices ultimately ship with a combination of open source and
proprietary software, including proprietary software required for accessing Google
services. Android is popular with technology companies that require a ready-made,
low-cost and customizable operating system for high-tech devices.
Engineering economics is the application of economic principles and
calculations to engineering projects. It is important to all fields of engineering
because no matter how technically sound an engineering project is; it will fail if it
is not economically feasible. Engineering economic analysis is often applied to
various possible designs for an engineering project in order to choose the optimum
design, thereby taking into account both technical and economic feasibility.

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Engineers may also use economics to calculate depreciation of value. For example,
they could calculate the value of a tool that a company is considering purchasing.
Methods for calculating depreciation include book value, straight-line depreciation,
and accelerated cost recovery system.
All disciplines of engineering employ engineering economics. Most university and
college engineering departments require a course in engineering economics, or
include economic analysis in other engineering coursework.
1.2 Aim of Project
The main aim of the project is to design and implement an Android Application to
help students (engineers and non-engineers) in the Engineering Economics.
1.3 Work Schedule
Stage 1: Understand Engineering Economics.
Stage 2: Convert Mathematical formulas into Code.
Stage 3: Design and Implement.
Stage 4: Testing.
1.4 Report layout
The report is laid out into Four chapters:
Chapter 2: Android Application Review.
Chapter 3: Compare Android Application for the Eng. Economy vs. Microsoft
Excel
Chapter 4: Conclusion.

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Chapter 2 Android Application Review
2.1 Introduction
Android Application for the Engineering Economy Designed to help engineering
students to solve Engineering Economics problems. This Application Contain three
main parts:
I. Compound Interest Calculator
II. Solving Series Problem
III. Combined Uniform and Gradient Series
Figure 2.1 Application interface

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2.2 Compound Interest Calculator
Figure 2.2.1 Compound Interest Table Examples (8%).
Figure 2.2.2 Compound Interest Calculator.

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2.3 Solving Series Problem
2.3.1 Solving Bank Balance Problems
 A common class of problems involving multiple cash flows is
“bank balance” problems.
 multiple deposits and withdrawals occur over time with a
known interest rate
Figure 2.3.1 Cash Flow Diagram (Example)
Present worth:
P = 300(P|F,15,1) -300(P|F,15, 3) + 200(P|F,15,4)
+ 400(P|F,15,6) + 200(P|F,15,8)
 P = 300(0.8696) -300(0.6575)
+ 200(0.5718) + 400(0.4323) + 200(0.3269)
PW = $416.29
Figure 2.3.1.1 Present worth (Ex)

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Future worth
F = 300(F|P,15,7) -300(F|P ,15, 5)
+ 200(F|P ,15,4) + 400(F|P ,15,2) + 200
 F = 300(2.6600) -300(2.0114)
+ 200(1.7490) + 400(1.3225) + 200
FW = $1273.38
2.3.2 Measures of Worth (Present Worth (PW))
For most of the engineering projects, equipments etc., there are more than
one feasible alternative. It is the duty of the project management team
(comprising of engineers, designers, project managers etc.) of the client
organization to select the best alternative that involves less cost and results
more revenue.
Figure 2.3.1.2 Future worth (Ex)

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Table 2.3.2 Measures of Worth (Example).
End of Year Plan A PW (A) 12% Plan B PW (B) 12% Plan C
PW (C)
12%
0 -5000 -5,000.000 -2000 -2,000.000 -3500 -3,500.000
1 2000 1,785.714 1000 892.857 1000 892.857
2 3500 2,790.179 3000 2,391.582 0 0.000
3 4000 2,847.121 1000 711.780 3000 2,135.341
4 4000 2,542.072 2000 1,271.036 -1000 -635.518
5 -3000 -1,702.281 1500 851.140 1500 851.140
6 -1000 -506.631 0 0.000 -4000 -2,026.524
Total 2,756.174 4,118.395 -2,282.704
Figure 2.3.2 Measures of Worth.
 If PW>=0  The Project is Attractive
 If PW<0  The Project is not Attractive.
 For Plan A  PW= 2,756.174 > 0  The Project is Attractive
 For Plan B  PW= 24,118.395 > 0  The Project is Attractive
 For Plan C  PW= -2,282.704 < 0  The Project is not Attractive
 But PW (B) > PW (A)  Select Plan B.

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2.4 Combined Uniform and Gradient Series
Frequently in practice a cash flow sequence can be represented as a combination of
a uniform and a gradient series. In this case, the series is broken into its component
pieces and the appropriate factor is applied to each piece.
Figure 2.4 Combined Example
P = $3000 (P|A, 10,5) + $1000 (P|G,10,5) = 3000 (3.7908) + 1000 (6.8618) = $18,234.20
Figure 2.4.1 Combined Uniform and Gradient Series

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Chapter 3 Compare Android Application
for the Eng. Economy vs. Microsoft Excel
3.1 Introduction
Microsoft Excel is a spreadsheet developed by Microsoft for Windows, Mac
OS X, Android and iOS. It features calculation, graphing tools, pivot tables,
and a macro programming language called Visual Basic for Applications. It
has been a very widely applied spreadsheet for these platforms, especially
since version 5 in 1993, and it has replaced Lotus 1-2-3 as the industry
standard for spreadsheets. Excel forms part of Microsoft Office.
3.2 Compound Interest Tables
Table 3.2 Compound Interest Table using Microsoft Excel Table (10%, 15 years).
Compound Interest Tables
Factor Formulas Result
(F|P, 10%, 15) =FV(10%;15;0;-1) 4.1772
(P|F, 10%, 15) =PV(10%;15;0;-1;0) 0.2393
(A|F, 10%, 15) =PMT(10%;15;0;-1;0) 0.0314
(F|A,10%, 15) =PMT(10%;15;-1;0) 0.1314
(A|P,10%, 15) =FV(10%;15;-1;0) 31.7724
(P|A, 10%, 15) =PV(10%;15;-1;0) 7.606
(P|G,10%, 15) =PMT(10%;15;-B10) 5.2789
(A|G, 10%, 15) =NPV(10%;G5:G19) 40.1519
Figure 3.2 Compound Interest Table (10%,
15 years)

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3.3 Solving Series Problem
3.3.1 Present worth
Table 3.3.1 Present worth Example
End of
Year
Cash
Flow (P|F, 8%,n)
Present
Worth PV(8%,n,-CF)
0 0 1 0 =PV(8%;A2;0;-B1)
1 500 0.9259 462.95 =PV(8%;A3;0;-B2)
2 -200 0.8573 -171.46 =PV(8%;A4;0;-B3)
3 600 0.7938 476.28 =PV(8%;A5;0;-B4)
4 300 0.735 220.5 =PV(8%;A6;0;-B5)
5 -100 0.6806 -68.06 =PV(8%;A7;0;-B6)
6 200 0.6302 126.04 =PV(8%;A8;0;-B7)
Total 1046.25 1046.279
3.3.2 Future worth
Table 3.3.2 Future worth Example
End of
Year
Cash
Flow
(F|P,
8%,n)
Future
Worth FV(8%,n,-CF)
0 0 1.587 0 =FV(8%;(6-A13);0;-B13)
1 500 1.469 734.5 =FV(8%;(6-A14);0;-B14)
2 -200 1.36 -272 =FV(8%;(6-A15);0;-B15)
3 600 1.26 756 =FV(8%;(6-A16);0;-B16)
4 300 1.166 349.8 =FV(8%;(6-A17);0;-B17)
5 -100 1.08 -108 =FV(8%;(6-A18);0;-B18)
6 200 1 200 =FV(8%;(6-A19);0;-B19)
Total 1660.3 1660.3134464
Figure 3.3.1 Present worth Example
Figure 3.3.2 Future worth Example.

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3.3.3 Combined Uniform and Gradient Series
Table 3.3.3 Combined Uniform and Gradient Series
End of Year (n) Cash Flow (CF) ($)
0 0
1 3000
2 4000
3 5000
4 6000
5 7000
Answer
Present worth =NPV(8%;B111:B115) Present worth 19350.5557601007
Future worth =FV(8%;5;0;-B117) Future worth 28432.31488
Figure 3.3.3.1 Combined Uniform and Gradient Series PW Figure 3.3.3.2 Combined Uniform and Gradient Series FW

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Chapter 4 Conclusion
4.1 Conclusion
When the engineer will design a new product he must study
everything related to his idea to avoid its errors and he must
interest to introduce high quality, low cost, high accuracy,
small size and easy to use product, then he should take
customers opinions and suggestions to improve his skills in
the next design.
This project was defiantly an experience to work on. We feel
that we have really accomplished something and have
learned so much in this project. All the different aspects of
the project have tough us something.
Android Application for the Engineering Economy is
Efficient, quick and easy to solve Engineering Economics
Problems.

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4.2 References
i. Dr. Mahmoud Al-Mistarihi Slides.
ii. Excel 2007, 1st edition, 2010 Torben Lage Frandsen & bookboon.com,
ISBN 978-87-7681-675-9
iii. Principles of Engineering Economic Analysis, by John A. White, Kenneth
E. Case and David B. Pratt, fifth Edition 2010
iv. Wikipedia website.
v. http://www.wisegeek.com/