FE exam : Engineering Economics review

In this video, I will present the fundamentals review of the engineering economics section, of the FE exam. The first part is a review with examples. The second part is about the engineering economics quiz. Please feel free to comment if you have any questions or suggestions.
Timecodes :
0:00 - Intro
0:50 - Cash flow types
8:33 - Equivalences
30:08 - Simple and compound interest, nominal and effective interest
40:15 - Capitalized cost
43:31 - Depreciations
49:34 - Book value
51:30 - Economic decision tree
57:46 - Quiz answers
⚡️link to the quiz :
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[@jennakrause4163]

This was more helpful than the entire economics class I took, thank you!

[@francielefaria92]

Thank you very much for all your videos and quizzes.

[@hashslingingslasher20]

Passed the exam thanks to your videos. Thanks!

[@FEAscent]

Congrats 😃

[@SherlandaPaints]

Thank you! This is very helpful.

[@aidataherzadeh8997]

This was one of the most useful videos I’ve watched so far for the FE exam. 🙏🏼

[@5_minutes_tutorials]

Did you pass the exam ?

[@FEAscent]

Yes.

[@aidataherzadeh8997]

@@5_minutes_tutorials I didn’t see this comment on time. But yes I did first try! And all I did was watching these videos.

[@rickycuellar5221]

Very Useful - thank you!

[@Mr_Saaws]

Hello, thanks for the video. In question 3, when do we know if we use the formula (r/m) instead of the Non-annual Compounding formula (1+r/m)^m - 1? Will the question ask to use the effective interest rate?

[@chernetsamuelasale6625]

Well informative, Thanks

[@autochick123]

Adding single payment and the uniform series is clearing things up for me I think. I’m taking a review course with PPI and am struggling with why certain formulas are being used where.

[@FEAscent]

Glad to hear that! I did not take any courses for my FE exam, so I can't comment regarding PPI courses, but there is a subreddit group where many students exchange reviews and feedback about online courses. Good luck!

[@catalinanoes2154]

Hi! Thanks for your video. Super helpful! I did had a question. On question 4 following the equation from the handbook Dj = C-Sn/n, & BV=C-£Dj. However, on your answer you multiply Dj by 3? Is that a rule that we should remember?

[@FEAscent]

Book value = C - Somme of depreciations Here the Somme of depreciations = D1 (year 1) + D2 (year 2) + D3 (year 3). But since we are talkin about a straight line depreciation : D1 = D2 = D3 = (C-S7)/7 That's why BV = C - 3D1

[@catalinanoes2154]

Thanks! Do you have more content similar to the Book Value problems?

[@FEAscent]

@@catalinanoes2154 I included the two methods of the handbook in this review. You need only to understand theses two method for the exam. Surely I will include additional practice problems in the futur. If you have a specific question that the review didn't cover, you can comment here or send me an email at : [e-mail]

[@catalinanoes2154]

Will do! Thank you so much, your videos really help 🙂

[@tonyantonio2]

For question 5 shoudn't you have done initial cost - Dj?

[@tonyantonio2]

wait basic algebra... :D

[@devinpledger2251]

1:05:49 why is it only -100 if its 100 dollars per year for 5 years?

[@lancea673]

the objective is to find the annual cost. In this case the maintenance is $100 per year.

[@mian9424]

Question number 2 answer is 678 Actually (-100-4000) x .212