The beam rests on a pin at A and a roller at B and overhangs B by 1.5 m to the free end C. It carries a point load P1 between the supports and a point load P2 at C. Find the bending moment Mx under the load P1. Use sagging moments positive and upward shear on the left face positive.
L = 9.5 mP1 = 60 kN at 1 mP2 = 15 kN at 9.5 msupports at x = 0 and x = 8 m
Mx = kN·m
6.Shear force & bending momentHard
The marks A to G split the beam into six equal parts. At which mark is the bending moment largest in size, sagging or hogging? Click it in the diagram.
35 kN @ 12 m6 kN/m, 0–10 m
1A (x = 0 m)
2B (x = 2 m)
3C (x = 4 m)
4D (x = 6 m)
5E (x = 8 m)
6F (x = 10 m)
7G (x = 12 m)
7.Beam deflectionMedium
A cantilever of length L is fixed at A and carries a point load P at a distance a = 2 m from A. Find the deflection δB at the free end B.
P = 10 kNa = 2 mL = 2.5 mE = 70 GPa (aluminium)I = 57 × 10⁶ mm⁴
δB = mm
8.Beam deflectionHard
A simply supported beam carries a uniformly distributed load w and a point load P at midspan. Using superposition, find the midspan deflection δmax.
P = 9 kNw = 6 kN/mL = 6 mE = 200 GPa (steel)I = 12 × 10⁶ mm⁴
δmax = mm
9.Column bucklingMedium
A column of length L made of steel is pinned at both ends. Using Euler’s formula, find its critical buckling load Pcr.
L = 2.5 mE = 200 GPa (steel)b × h = 20 × 40 mm
Pcr = kN
10.Column bucklingHard
A column of length L made of steel is fixed at the base and pinned at the top. Find its slenderness and the critical buckling stress σcr from Euler’s formula.
L = 4 mE = 200 GPa (steel)d = 25 mm
σcr = MPa
11.Centroid & second moment of areaMedium
A 200 mm × 300 mm plate has a circular hole of diameter 50 mm on its vertical centre line, with its centre 120 mm above the bottom. Find the second moment of area Ix about the horizontal axis through the centroid.
b = 200 mmh = 300 mmd = 50 mmhole centre: y = 120 mm
Ix = × 10⁶ mm⁴
12.Centroid & second moment of areaHard
A symmetric I-section has flanges 250 mm wide and 18 mm thick, an overall depth of 320 mm and a web 8 mm thick. It carries a bending moment of 100 kN·m about the axis x. Find the size of the bending stress σj at the junction of the web and the top flange.
A 7.5 m thick overconsolidated clay layer has Cc = 0.35, Cr = 0.05 and e₀ = 1.15. At its mid-depth the effective vertical stress is 95 kPa and the preconsolidation pressure is 145 kPa. A new building adds 40 kPa of vertical stress at mid-depth. Find the primary consolidation settlement S in mm.
A clay layer 7 m thick has a coefficient of consolidation cv = 1.5 m²/year. It lies on impervious rock, with sand above it, so water drains out only at the top. For 70% average consolidation the time factor is Tv = 0.403. How many years t does the layer take to reach 70% consolidation?
A vertical rectangular gate 1.5 m wide sits in the wall of a tank of water, with its top edge 1 m below the surface. Find the resultant hydrostatic force F on the gate.
A vertical rectangular gate 1 m wide sits in the wall of a tank of water, with its top edge 1 m below the surface. Find the resultant hydrostatic force F on the gate.
d = 1 mH = 2 mb = 1 mρ = 1000 kg/m³g = 9.81 m/s²
F = kN
19.Pipe friction & head lossMedium
Water flows at 4 L/s through a pipe 200 m long with an inside diameter of 75 mm. Use the Darcy friction factor f = 0.03 and g = 9.81 m/s². Find the friction head loss hf.
Q = 4 L/sL = 200 mD = 75 mmf = 0.03g = 9.81 m/s²
hf = m
20.Pipe friction & head lossHard
Two open reservoirs are joined by a pipe 300 m long with an inside diameter of 300 mm and a Darcy friction factor f = 0.025. The minor losses are a square-edged entrance (K = 0.5), 4 bends (K = 0.3 each), a valve (K = 10) and the exit into the lower reservoir (K = 1.0). Use g = 9.81 m/s². What difference in water level Δz between the reservoirs gives a flow rate of 100 L/s?
A rectangular grass-lined earth channel is 5 m wide. Water flows uniformly 2 m deep. Manning n = 0.03 and the bed slope is S = 0.001. Find the flow rate Q in m³/s.
b = 5 my = 2 mn = 0.03S = 0.001
Q = m³/s
22.Open-channel flow (Manning)Hard
A trapezoidal brickwork channel with a bottom width of 6 m and side slopes of 3:1 (horizontal:vertical) must carry 87 m³/s in uniform flow at a depth of 2.4 m. Manning n = 0.015. Find the required bed slope S (in m/m).
Q = 87 m³/sb = 6 my = 2.4 mz = 3n = 0.015
S = m/m
23.Pumps & pump powerMedium
A pump with an efficiency of 85% delivers 15 L/s of water (ρ = 1000 kg/m³) against a head of 32 m. Use g = 9.81 m/s². Find the shaft power Pshaft needed, in kW.
Q = 15 L/sH = 32 mη = 85%g = 9.81 m/s²
Pshaft = kW
24.Pumps & pump powerHard
A pump moves 50 L/s of water (ρ = 1000 kg/m³) from an open lower reservoir to an upper tank whose water surface is 38 m higher. The pipe is 300 m long with an inside diameter of 150 mm and a Darcy friction factor f = 0.025; the minor-loss coefficients add up to ΣK = 8 (entrance and exit included). Use g = 9.81 m/s². The pump efficiency is 65%. Find the shaft power Pshaft in kW.
You invest €10 000 at 2% per year with continuous compounding. Find the value FV after 15 years.
PV = €10 000r = 2%t = 15
FV = €
26.Time value of moneyHard
A loan of €150 000 is repaid with equal monthly payments over 30 years. The interest rate is 2.4% per year, compounded monthly. Find the monthly payment A.
P = €150 0002.4% / 12N = 360
A = €
27.NPV & IRRMedium
A machine costs €30 000 today, lasts 5 years and costs €2 000 per year to run (paid at the end of each year). The cost of capital is 6%. Find its equivalent annual cost EAC.
C0 = €30 000M = €2 000n = 5r = 6%
EAC = €
28.NPV & IRRHard
An investment of €50 000 returns €6 500 at the end of each year for 9 years. Find its internal rate of return IRR in percent.
C0 = €50 000CF = €6 500n = 9
IRR = %
29.Normal distributionMedium
The battery lifetimes are normally distributed with mean 500 h and standard deviation 40 h. What fraction lies between 454 and 572 h? Give P as a decimal.
μ = 500σ = 40x1 = 454x2 = 572
P =
30.Normal distributionHard
Hole diameters D are normal with mean 25.04 mm and standard deviation 0.015 mm. Shaft diameters d are independent and normal with mean 25 mm and standard deviation 0.02 mm. A randomly chosen shaft fits when D − d > 0. Find the probability P that it fits. Round z to two decimals.
hole: μ = 25.04 mm, σ = 0.015 mmshaft: μ = 25 mm, σ = 0.02 mm
P =
3Solutions
1.Beam support reactions
Answer: RA = 9 kN
Static equilibrium: a body at rest has ΣFx = 0, ΣFy = 0 and ΣM = 0 about any point. Replace each distributed load by its resultant (its area) acting at the centroid of the load diagram, and take moments about a support to remove that support’s reaction from the equation.
Moments about A
Counter-clockwise positive.
ΣMA = 0: RB·2.5 = 45·1.5 + 15·4
RB = 127.5/2.5 = 51 kN
Vertical equilibrium
RA = 45 + 15 − 51 = 9 kN
Answer
RA = 9 kN
2.Beam support reactions
Answer: RA = 13.5 kN
Static equilibrium: a body at rest has ΣFx = 0, ΣFy = 0 and ΣM = 0 about any point. Taking moments about one support removes that support’s reaction from the equation.
Free-body diagram
Replace the supports with reaction forces. A roller gives one vertical reaction; with only vertical loads the pin gives one vertical reaction too.
Equilibrium
Moments about A, counter-clockwise positive. Then vertical force balance.
UDL resultant: W = w·ℓ = 2·5 = 10 kN, acting at x̄ = 6.5 m
ΣMA = 0: RB·10 = 25·6 + 2·5·6.5
RB = 215/10 = 21.5 kN
ΣFy = 0: RA = 35 − 21.5 = 13.5 kN
Answer
RA = 13.5 kN
3.Truss: method of joints
Answer: FBC = −11.18 kN
Method of joints: every pin of a truss is in equilibrium, so ΣFx = 0 and ΣFy = 0 at each joint. Start at a joint with at most two unknown member forces. A negative result means the member is in compression.
Support reactions
Equilibrium of the whole truss. Moments about A, counter-clockwise positive.
ΣMA = 0: Cy·5 = 25·1 → Cy = 5 kN
ΣFy = 0: Ay = 25 − 5 = 20 kN
Joint C
The roller gives only a vertical reaction, so joint C has just two unknown member forces. Assume both in tension.
sin γ = 2/4.472 = 0.4472, cos γ = 4/4.472 = 0.8944
Zero-force members: at a joint, the forces must balance in every direction. If a joint has no load and no support, and two of its three members are in line, then the balance across that line involves only the third member, so its force is zero. If only two members meet at an unloaded joint and they are not in line, both are zero.
Joint C
BC and CD lie on one straight line and the joint carries no load. Balancing forces across that line leaves only CG.
ΣF⊥ = 0 → FCG = 0
Check with the method of joints
Solving all joints gives these member forces (T = tension, C = compression).
Method of sections: cut the beam where you want the internal forces and keep one side. The shear force V balances the vertical forces on that side, and the bending moment M balances their moments about the cut.
Support reactions
Equilibrium of the whole beam. The overhang load also acts about A.
ΣMA = 0: RB·8 = 60·1 + 15·9.5
RB = 202.5/8 = 25.31 kN
ΣFy = 0: RA = 75 − 25.31 = 49.69 kN
Cut under P1 and keep the left part
Mx = RA·1 = 49.69·1 = 49.69 kN·m
Answer
Mx = 49.69 kN·m
6.Shear force & bending moment
Answer: F (x = 10 m)
Largest bending moment: M changes slope wherever the shear force changes, so its peaks sit where the shear force crosses zero: under a point load, inside a distributed load, or over a support of an overhang. At a fixed support of a cantilever the moment is largest at the wall. Compare the size of M at those places, sagging or hogging.
Support reactions
Take moments about one support, then use the vertical force balance.
R1 = 23 kN, R2 = 72 kN
Bending moment at every mark
Sum the moments of all forces on one side of the cut. Sagging is positive, hogging negative.
MA = 0, MB = 34, MC = 44, MD = 30, ME = −8, MF = −70 kN·m, MG = 0
Answer
Mark F: MF = −70 kN·m
7.Beam deflection
Answer: δB = 9.19 mm
Beam deflection: deflections come from integrating the curvature M/(EI) twice. Standard cases are tabulated, for example PL³/(3EI) for a cantilever with an end load and 5wL⁴/(384EI) for a simply supported beam under a full uniform load. Deflections from separate loads add (superposition).
Consistent units
Work in N and mm: P in N, w in N/mm (kN/m = N/mm), L in mm, E in N/mm² (GPa × 1000), I in mm⁴.
P = 10000 N, a = 2000 mm, L = 2500 mm
EI = 3.99 × 10¹² N·mm²
Deflection at the free end
Deflection at the load plus the slope at the load times the remaining length.
δP = Pa³/(3EI) = 6.683 mm
θP = Pa²/(2EI) = 0.005013 rad
δB = δP + θP·(L − a) = Pa²(3L − a)/(6EI) = 9.19 mm
Answer
δB = 9.19 mm
8.Beam deflection
Answer: δmax = 59.06 mm
Beam deflection: deflections come from integrating the curvature M/(EI) twice. Standard cases are tabulated, for example PL³/(3EI) for a cantilever with an end load and 5wL⁴/(384EI) for a simply supported beam under a full uniform load. Deflections from separate loads add (superposition).
Consistent units
Work in N and mm: P in N, w in N/mm (kN/m = N/mm), L in mm, E in N/mm² (GPa × 1000), I in mm⁴.
P = 9000 N, w = 6 N/mm, L = 6000 mm, EI = 2.4 × 10¹² N·mm²
Each load on its own
δP = PL³/(48EI) = 9000·6000³/(48·2.4 × 10¹²) = 16.88 mm
δw = 5wL⁴/(384EI) = 5·6·6000⁴/(384·2.4 × 10¹²) = 42.19 mm
Add them
δmax = 16.88 + 42.19 = 59.06 mm
Answer
δmax = 59.06 mm
9.Column buckling
Answer: Pcr = 8.422 kN
Euler buckling: a slender column becomes unstable at Pcr = π²EI/(KL)², where KL is the effective length: K = 1 for pinned–pinned, 2 for fixed–free, 0.7 for fixed–pinned and 0.5 for fixed–fixed. It buckles about the axis with the smallest I. The formula holds for slender columns, whose critical stress stays below the yield stress.
Smallest second moment of area
A rectangle buckles about its weak axis, using the smaller dimension cubed.
Euler buckling: a slender column becomes unstable at Pcr = π²EI/(KL)², where KL is the effective length: K = 1 for pinned–pinned, 2 for fixed–free, 0.7 for fixed–pinned and 0.5 for fixed–fixed. It buckles about the axis with the smallest I. The formula holds for slender columns, whose critical stress stays below the yield stress.
Smallest second moment of area
A round section has the same I about every axis.
I = πd⁴/64 = π·25⁴/64 = 19175 mm⁴
Radius of gyration and slenderness
A = 490.9 mm²
r = √(I/A) = √(19175/490.9) = 6.25 mm
KL = 0.7·4000 = 2800 mm
KL/r = 2800/6.25 = 448
Critical stress
σcr = π²E/(KL/r)² = π²·200000/448² = 9.835 MPa
Answer
σcr = 9.835 MPa
11.Centroid & second moment of area
Answer: Ix = 447.9 × 10⁶ mm⁴
Sections with holes: treat a hole as a negative area. The centroid is ȳ = (A₁y₁ − A₂y₂)/(A₁ − A₂), with A₁, y₁ for the full plate and A₂, y₂ for the hole. For the second moment of area about the centroidal axis, use the parallel-axis theorem for each part and subtract the hole: I = (Ic1 + A₁d₁²) − (Ic2 + A₂d₂²), where d is the distance from each part's own centroid to the axis through ȳ. A rectangle has Ic = bh³/12 and a circle Ic = πd⁴/64.
Centroid
ȳ = (60000·150 − 1963·120)/(60000 − 1963) = 151 mm
Full plate about ȳ
200·300³/12 + 60000·−1.015² = 450.1 × 10⁶ mm⁴
Hole about ȳ
π·50⁴/64 + 1963·−31.01² = 2.196 × 10⁶ mm⁴
Subtract
Ix = 447.9 × 10⁶ mm⁴
Answer
Ix = 447.9 × 10⁶ mm⁴
12.Centroid & second moment of area
Answer: σj = 64.33 MPa
Composite areas: split the section into rectangles. The centroid is the area-weighted average ȳ = ΣAᵢyᵢ/ΣAᵢ. The second moment of area about the centroidal axis adds each part’s own bh³/12 and its parallel-axis term A·d², where d is the distance from the part’s centroid to the overall centroid. Bending stress is σ = M·y/I.
Outer rectangle minus the two side cut-outs
Both cut-outs together are (B − tw) wide and hw = H − 2tf high, and share the axis x.
Effective stress (Terzaghi): the soil skeleton carries σ′ = σ − u. The total stress σ is the weight of everything above the point, Σγ·h, using the dry unit weight above the water table and the saturated unit weight below it. Below the water table the pore water pressure is hydrostatic: u = γw·(depth below the water table).
Pore water pressure
Water pressure grows with depth below the water table.
u = γw·(z − zw) = 9.81·10 = 98.1 kPa
Answer
u = 98.1 kPa
14.Effective stress in soil
Answer: σ′ = 74.14 kPa
Effective stress (Terzaghi): the soil skeleton carries σ′ = σ − u. The total stress σ is the weight of everything above the point, Σγ·h, using the dry unit weight above the water table and the saturated unit weight below it. Below the water table the pore water pressure is hydrostatic: u = γw·(depth below the water table).
Total stress
Add the weight of each soil band above X. Above the water table use the dry unit weight, below it the saturated one.
σ = γd·1 + γsat,sand·4 + γsat,clay·2
σ = 15·1 + 20.5·4 + 18·2 = 133 kPa
Pore water pressure
Water pressure grows with depth below the water table.
u = γw·(z − zw) = 9.81·6 = 58.86 kPa
Effective stress
σ′ = σ − u = 133 − 58.86 = 74.14 kPa
Answer
σ′ = 74.14 kPa
15.Consolidation settlement
Answer: S = 26.62 mm
Primary consolidation of a clay layer of thickness H, using the effective stress at the middle of the layer: σ′f = σ′0 + Δσ. Normally consolidated clay: S = Cc·H/(1 + e0)·log₁₀(σ′f/σ′0). Overconsolidated clay recompresses along Cr up to the preconsolidation pressure σ′p and follows Cc only beyond it. Time: t = Tv·Hdr²/cv, where the drainage path Hdr is H/2 when water can leave at the top and bottom, and H when only one side drains.
Compare with the preconsolidation pressure
σ′f = 95 + 40 = 135 kPa ≤ 145 kPa
Settlement
The clay stays on its recompression line.
S = Cr·H/(1 + e0)·log₁₀(σ′f/σ′0) = 0.05·7.5/(1 + 1.15)·log₁₀(135/95) = 26.62 mm
Answer
S = 26.62 mm
16.Consolidation settlement
Answer: t = 13.16 years
Primary consolidation of a clay layer of thickness H, using the effective stress at the middle of the layer: σ′f = σ′0 + Δσ. Normally consolidated clay: S = Cc·H/(1 + e0)·log₁₀(σ′f/σ′0). Overconsolidated clay recompresses along Cr up to the preconsolidation pressure σ′p and follows Cc only beyond it. Time: t = Tv·Hdr²/cv, where the drainage path Hdr is H/2 when water can leave at the top and bottom, and H when only one side drains.
Drainage path
Hdr = H = 7 m
Time
t = Tv·Hdr²/cv = 0.403·7²/1.5 = 13.16 years
Answer
t = 13.16 years
17.Hydrostatic force
Answer: F = 38.63 kN
Hydrostatic force on a plane surface: F = ρ·g·yc·A. It acts at the centre of pressure, ycp = yc + Ic/(ycA), which always lies below the centroid.
Centroid depth and area
yc = d + H/2 = 1 + 1.5/2 = 1.75 m
A = H·b = 1.5·1.5 = 2.25 m²
Resultant force
F = ρ·g·yc·A = 1000·9.81·1.75·2.25 = 38.63 kN
Answer
F = 38.63 kN
18.Hydrostatic force
Answer: F = 39.24 kN
Hydrostatic force on a plane surface: F = ρ·g·yc·A. It acts at the centre of pressure, ycp = yc + Ic/(ycA), which always lies below the centroid.
Centroid depth and area
yc = d + H/2 = 1 + 2/2 = 2 m
A = H·b = 2·1 = 2 m²
Resultant force
F = ρ·g·yc·A = 1000·9.81·2·2 = 39.24 kN
Answer
F = 39.24 kN
19.Pipe friction & head loss
Answer: hf = 3.343 m
Pipe flow: the Reynolds number Re = V·D/ν = ρ·V·D/μ tells laminar flow (Re below about 2000) from turbulent flow (above about 4000). Friction along a pipe costs the Darcy–Weisbach head loss hf = f·(L/D)·V²/(2g). Fittings, valves, the entrance and the exit add minor losses hm = ΣK·V²/(2g). Between two open reservoir surfaces the energy equation gives Δz = hf + hm, with the exit loss K = 1 included.
Mean velocity
A = π·0.075²/4 = 0.004418 m²
V = Q/A = 0.004/0.004418 = 0.9054 m/s
Velocity head
V²/(2g) = 0.9054²/(2·9.81) = 0.04178 m
Darcy–Weisbach
hf = f·(L/D)·V²/(2g) = 0.03·(200/0.075)·0.9054²/(2·9.81) = 3.343 m
Answer
hf = 3.343 m
20.Pipe friction & head loss
Answer: Δz = 3.846 m
Pipe flow: the Reynolds number Re = V·D/ν = ρ·V·D/μ tells laminar flow (Re below about 2000) from turbulent flow (above about 4000). Friction along a pipe costs the Darcy–Weisbach head loss hf = f·(L/D)·V²/(2g). Fittings, valves, the entrance and the exit add minor losses hm = ΣK·V²/(2g). Between two open reservoir surfaces the energy equation gives Δz = hf + hm, with the exit loss K = 1 included.
Velocity
V = Q/A = 0.1/0.07069 = 1.415 m/s
V²/(2g) = 0.102 m
Loss coefficients
f·L/D = 0.025·300/0.3 = 25
ΣK = 0.5 + 4·0.3 + 10 + 1.0 = 12.7
Total head loss
hf = 25·0.102 = 2.55 m
hm = 12.7·0.102 = 1.296 m
Δz = hf + hm = 3.846 m
Answer
Δz = 3.846 m
21.Open-channel flow (Manning)
Answer: Q = 11.31 m³/s
Manning’s equation (SI): for uniform flow in an open channel V = (1/n)·R2/3·S1/2 and Q = A·V, with n the roughness coefficient, S the bed slope (m/m) and R = A/P the hydraulic radius: flow area divided by wetted perimeter. Only the boundary in contact with the water counts in P, not the free surface. Rectangle: A = b·y, P = b + 2y. Trapezoid with side slopes z:1 (horizontal:vertical): A = (b + z·y)·y, P = b + 2y·√(1 + z²). A circular pipe flowing full or half full has R = D/4.
Geometry
A = b·y = 5·2 = 10 m²
P = b + 2y = 5 + 2·2 = 9 m
R = A/P = 1.111 m
Velocity
V = (1/0.03)·1.1112/3·0.0011/2 = 1.131 m/s
Flow rate
Q = A·V = 10·1.131 = 11.31 m³/s
Answer
Q = 11.31 m³/s
22.Open-channel flow (Manning)
Answer: S = 0.0009919 m/m
Manning’s equation (SI): for uniform flow in an open channel V = (1/n)·R2/3·S1/2 and Q = A·V, with n the roughness coefficient, S the bed slope (m/m) and R = A/P the hydraulic radius: flow area divided by wetted perimeter. Only the boundary in contact with the water counts in P, not the free surface. Rectangle: A = b·y, P = b + 2y. Trapezoid with side slopes z:1 (horizontal:vertical): A = (b + z·y)·y, P = b + 2y·√(1 + z²). A circular pipe flowing full or half full has R = D/4.
Geometry
A = (b + z·y)·y = (6 + 3·2.4)·2.4 = 31.68 m²
P = b + 2y·√(1 + z²) = 6 + 2·2.4·√(1 + 3²) = 21.18 m
Pump power: the power given to the water is the hydraulic power Ph = ρ·g·Q·H = Q·Δp. The shaft must deliver more because the pump loses some: Pshaft = Ph/ηpump, and the motor draws Pel = Pshaft/ηmotor. The pump head H follows from the energy equation: static lift + pressure head + all friction and minor losses.
Hydraulic power
Ph = ρ·g·Q·H = 1000·9.81·0.015·32 = 4.709 kW
Shaft power
Pshaft = Ph/η = 4.709/0.85 = 5.54 kW
Answer
Pshaft = 5.54 kW
24.Pumps & pump power
Answer: Pshaft = 46.53 kW
Pump power: the power given to the water is the hydraulic power Ph = ρ·g·Q·H = Q·Δp. The shaft must deliver more because the pump loses some: Pshaft = Ph/ηpump, and the motor draws Pel = Pshaft/ηmotor. The pump head H follows from the energy equation: static lift + pressure head + all friction and minor losses.
Time value of money: money today is worth more than the same amount later, because it can earn interest. With interest rate i per period, an amount grows as FV = PV·(1 + i)n. A series of equal payments (an annuity) is valued by adding up each payment, which gives the annuity formulas.
Exponent
r·t = 0.02·15 = 0.3
e0.3 = 1.35
Future value
FV = 10 000·1.35 = €13 498.59
Answer
FV = €13 498.59
26.Time value of money
Answer: A = 584.9 €
Time value of money: money today is worth more than the same amount later, because it can earn interest. With interest rate i per period, an amount grows as FV = PV·(1 + i)n. A series of equal payments (an annuity) is valued by adding up each payment, which gives the annuity formulas.
Monthly rate and number of payments
i = 0.024/12 = 0.002
N = 12·30 = 360
Payment
The present value of N equal payments A is A·(1 − (1 + i)⁻ᴺ)/i. Set it equal to the loan and solve for A.
(1 + i)−N = 0.4871
A = 150 000·0.002/(1 − 0.4871) = €584.91
Answer
A = €584.91
27.NPV & IRR
Answer: EAC = 9122 €
Equivalent annual cost: spread the present value of all costs over the life as an equal yearly amount (an annuity): EAC = PV·r/(1 − (1 + r)⁻ⁿ). It lets you compare machines with different lives.
Annuity factor
(1 − 1.06−5)/0.06 = 4.212
Annualised purchase price
30 000/4.212 = 7 121.89
EAC
EAC = 7 121.89 + 2 000 = €9 121.89
Answer
EAC = €9 121.89
28.NPV & IRR
Answer: IRR = 3.261 %
Net present value: discount every cash flow back to today with the required rate of return r, then add them up: NPV = Σ CFₜ/(1 + r)ᵗ. A project with NPV > 0 earns more than r and adds value. The internal rate of return (IRR) is the rate at which NPV = 0.
Required annuity factor
(1 − (1 + i)−9)/i = 50 000/6 500 = 7.692
Solve for the rate
The annuity factor falls as the rate rises; bracket the rate and narrow down.
i = 3%: 7.786
i = 4%: 7.435
IRR = 3.261%
Answer
IRR = 3.261%
29.Normal distribution
Answer: P = 0.839
Normal distribution: convert a value x to a z-score, z = (x − μ)/σ, which counts standard deviations from the mean. A z-table (or Φ(z)) gives the area to the left of z, which is P(X < x). The area to the right is 1 − Φ(z), and the area between two values is the difference of their two areas.
z-scores
z₁ = (454 − 500)/40 = −1.15
z₂ = (572 − 500)/40 = 1.8
Area between
P = Φ(1.8) − Φ(−1.15) = 0.9641 − 0.1251 = 0.839
Answer
P = 0.839
30.Normal distribution
Answer: P = 0.9452
Sums and differences of normal variables: if X and Y are independent and normal, X + Y and X − Y are normal too. Means add or subtract: E(X ± Y) = μX ± μY. Variances always add, also for a difference: Var(X ± Y) = σX² + σY², so σ = √(σX² + σY²). Standard deviations never add directly. The total of n independent items with the same distribution has mean n·μ and standard deviation σ·√n. Then standardise as usual: z = (x − mean)/σ and read Φ(z).
Distribution of the difference
μ = 25.04 − 25 = 0.04 mm, σ = 0.025 mm
Standardise
z = (0 − 0.04)/0.025 = −1.6
Probability
P = 1 − Φ(−1.6) = 0.9452
Answer
P = 0.9452
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