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.
60 kN @ 6 m10 kN/m, 0–12 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)
6.Shear force & bending momentHard
The simply supported beam carries a uniformly distributed load w over its whole span and a point load P. Find the maximum bending moment Mmax in the beam.
L = 8 mP = 60 kN at 7 mw = 12 kN/m from 0 to 8 m
Mmax = kN·m
7.Beam deflectionMedium
A simply supported beam carries a point load P at a = 1 m from support A. Find the deflection δP under the load.
P = 9 kNa = 1 mL = 3 mE = 70 GPa (aluminium)I = 36 × 10⁶ mm⁴
δP = 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 = 10 kNw = 2 kN/mL = 6 mE = 200 GPa (steel)I = 160 × 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 = 5 mE = 200 GPa (steel)b × h = 25 × 80 mm
Pcr = kN
10.Column bucklingHard
A solid round column of length L made of steel is fixed at both ends. It must carry 15 kN with a factor of safety of 2 against buckling. Find the smallest diameter d.
P = 15 kNn = 2L = 5 mE = 200 GPa (steel)
d = mm
11.Centroid & second moment of areaMedium
A 200 mm × 200 mm plate has a circular hole of diameter 60 mm on its vertical centre line, with its centre 80 mm above the bottom. Find the second moment of area Ix about the horizontal axis through the centroid.
b = 200 mmh = 200 mmd = 60 mmhole centre: y = 80 mm
Ix = × 10⁶ mm⁴
12.Centroid & second moment of areaHard
A 150 mm × 300 mm plate has a rectangular cut-out 60 mm wide and 50 mm high, centred on the vertical centre line with its centre 195 mm above the bottom. Find the second moment of area Ix about the horizontal axis through the centroid.
b = 150 mmh = 300 mmcut-out: 60 × 50 mmhole centre: y = 195 mm
Ix = × 10⁶ mm⁴
13.Effective stress in soilMedium
For the soil profile shown, find the vertical effective stress σ′ at point X.
A 6.5 m thick overconsolidated clay layer has Cc = 0.25, Cr = 0.05 and e₀ = 0.7. At its mid-depth the effective vertical stress is 75 kPa and the overconsolidation ratio is OCR = 2. A new building adds 20 kPa of vertical stress at mid-depth. Find the primary consolidation settlement S in mm.
In a laboratory oedometer test, a clay specimen 25 mm thick, drained at the top and bottom, reaches 50% consolidation in 15 min. In the field the same clay forms a layer 2 m thick. It lies on impervious rock, with sand above it, so water drains out only at the top. How many days t does the field layer take to reach 50% consolidation?
A vertical rectangular gate 1 m wide sits in the wall of a tank of water, with its top edge 2.5 m below the surface. Find the resultant hydrostatic force F on the gate.
A vertical rectangular gate 2 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 = 1 mb = 2 mρ = 1000 kg/m³g = 9.81 m/s²
F = kN
19.Pipe friction & head lossMedium
Water flows at 6 L/s through a pipe 1000 m long with an inside diameter of 50 mm. Use the Darcy friction factor f = 0.015 and g = 9.81 m/s². Find the friction head loss hf.
Two open reservoirs are joined by a pipe 100 m long with an inside diameter of 150 mm and a Darcy friction factor f = 0.018. The water surface of the upper reservoir is 9 m above that of the lower one. The minor losses are a square-edged entrance (K = 0.5), 4 bends (K = 0.3 each), a valve (K = 2) and the exit into the lower reservoir (K = 1.0). Use g = 9.81 m/s². Find the flow rate Q in L/s.
A rectangular clean earth channel is 3 m wide. Water flows uniformly 2.5 m deep. Manning n = 0.022 and the bed slope is S = 0.002. Find the flow rate Q in m³/s.
b = 3 my = 2.5 mn = 0.022S = 0.002
Q = m³/s
22.Open-channel flow (Manning)Hard
A trapezoidal gravel channel with a bottom width of 2 m and side slopes of 1:1 (horizontal:vertical) must carry 13 m³/s in uniform flow at a depth of 1.5 m. Manning n = 0.025. Find the required bed slope S (in m/m).
Q = 13 m³/sb = 2 my = 1.5 mz = 1n = 0.025
S = m/m
23.Pumps & pump powerMedium
A pump with an efficiency of 65% delivers 20 L/s of water (ρ = 1000 kg/m³) against a head of 56 m. Use g = 9.81 m/s². Find the shaft power Pshaft needed, in kW.
Q = 20 L/sH = 56 mη = 65%g = 9.81 m/s²
Pshaft = kW
24.Pumps & pump powerHard
A pump moves 75 L/s of water (ρ = 1000 kg/m³) from an open lower reservoir to an upper tank whose water surface is 21 m higher. The pipe is 100 m long with an inside diameter of 200 mm and a Darcy friction factor f = 0.018; the minor-loss coefficients add up to ΣK = 6 (entrance and exit included). Use g = 9.81 m/s². The pump efficiency is 85%. Find the shaft power Pshaft in kW.
You need €25 000 in 6 years. An account pays 4.8% per year, compounded quarterly. How much must you deposit today? Find the present value PV.
FV = €25 0004.8% / 4n = 6
PV = €
26.Time value of moneyHard
You save €200 at the end of every month for 16 years. The account pays 2.4% per year, compounded monthly. How much have you saved at the end? Find FV.
A = €2002.4% / 12N = 192
FV = €
27.NPV & IRRMedium
An investment of €45 000 gives these cash flows at the end of years 1 to 3: €19 000, €14 000, €11 000. The cost of capital is 15%. Find the net present value NPV.
A project costs €20 000 and returns €8 000, €14 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
CF0 = −20 000CF1 = 8 000CF2 = 14 000
IRR = %
29.Normal distributionMedium
X is normal with mean 12 min and standard deviation 1.5 min; Y is independent and normal with mean 20 min and standard deviation 2 min. Find the probability P that X + Y is more than 29.5 min. Round z to two decimals.
μX = 12, σX = 1.5μY = 20, σY = 2X + Y > 29.5 min
P =
30.Normal distributionHard
The bag weights are normally distributed with mean 250 g and standard deviation 5 g. Drag the cut-off so the shaded bottom 20% is to the left of it. Find the cut-off x.
μ = 250 gσ = 5 g20%
x = g
3Solutions
1.Beam support reactions
Answer: RA = 28 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.
ΣMA = 0: RB·10 = 30·2 + 40·9
RB = 420/10 = 42 kN
ΣFy = 0: RA = 70 − 42 = 28 kN
Answer
RA = 28 kN
2.Beam support reactions
Answer: RA = 20 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 = 2·10 = 20 kN, acting at x̄ = 5 m
ΣMA = 0: RB·10 = 25·6 + 2·10·5
RB = 250/10 = 25 kN
ΣFy = 0: RA = 45 − 25 = 20 kN
Answer
RA = 20 kN
3.Truss: method of joints
Answer: FBC = −8.839 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·8 = 10·5 → Cy = 6.25 kN
ΣFy = 0: Ay = 10 − 6.25 = 3.75 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 = 3/4.243 = 0.7071, cos γ = 3/4.243 = 0.7071
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 B
AB and BC lie on one straight line and the joint carries no load. Balancing forces across that line leaves only BF.
ΣF⊥ = 0 → FBF = 0
Check with the method of joints
Solving all joints gives these member forces (T = tension, C = compression).
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 = 90 kN, R2 = 90 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 = 160, MC = 280, MD = 360 kN·m, ME = 280, MF = 160, MG = 0
Answer
Mark D: MD = 360 kN·m
6.Shear force & bending moment
Answer: Mmax = 128.3 kN·m
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. Maximum moment: since dM/dx = V, the bending moment has its peak where the shear force passes through zero, either at a point load or inside a distributed load.
Support reactions
Equilibrium of the whole beam.
UDL resultant: W = w·ℓ = 12·8 = 96 kN, acting at x̄ = 4 m
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, a = 1000 mm, b = 2000 mm, L = 3000 mm
EI = 2.52 × 10¹² N·mm²
Deflection under the load
δP = Pa²b²/(3EIL) = 9000·1000²·2000²/(3·2.52 × 10¹²·3000) = 1.587 mm
Answer
δP = 1.587 mm
8.Beam deflection
Answer: δmax = 2.461 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, w = 2 N/mm, L = 6000 mm, EI = 3.2 × 10¹³ N·mm²
Each load on its own
δP = PL³/(48EI) = 10000·6000³/(48·3.2 × 10¹³) = 1.406 mm
δw = 5wL⁴/(384EI) = 5·2·6000⁴/(384·3.2 × 10¹³) = 1.055 mm
Add them
δmax = 1.406 + 1.055 = 2.461 mm
Answer
δmax = 2.461 mm
9.Column buckling
Answer: Pcr = 8.225 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.
Required critical load
Pcr = n·P = 2·15000 = 30000 N
KL = 0.5·5000 = 2500 mm
Solve for the diameter
d = (64·n·P·(KL)²/(π³E))^(1/4) = (64·30000·2500²/(π³·200000))^(1/4) = 37.3 mm
Answer
d = 37.3 mm
Check: the slenderness KL/r is 268.1, so the column is slender and Euler applies.
11.Centroid & second moment of area
Answer: Ix = 131.5 × 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 = (40000·100 − 2827·80)/(40000 − 2827) = 101.5 mm
Full plate about ȳ
200·200³/12 + 40000·−1.521² = 133.4 × 10⁶ mm⁴
Hole about ȳ
π·60⁴/64 + 2827·−21.52² = 1.946 × 10⁶ mm⁴
Subtract
Ix = 131.5 × 10⁶ mm⁴
Answer
Ix = 131.5 × 10⁶ mm⁴
12.Centroid & second moment of area
Answer: Ix = 330.4 × 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 = (45000·150 − 3000·195)/(45000 − 3000) = 146.8 mm
Full plate about ȳ
150·300³/12 + 45000·3.214² = 338 × 10⁶ mm⁴
Hole about ȳ
60·50³/12 + 3000·48.21² = 7.599 × 10⁶ mm⁴
Subtract
Ix = 330.4 × 10⁶ mm⁴
Answer
Ix = 330.4 × 10⁶ mm⁴
13.Effective stress in soil
Answer: σ′ = 77.07 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.
Water pressure grows with depth below the water table.
u = γw·(z − zw) = 9.81·3 = 29.43 kPa
Effective stress
σ′ = σ − u = 106.5 − 29.43 = 77.07 kPa
Answer
σ′ = 77.07 kPa
14.Effective stress in soil
Answer: u = 49.05 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).
Pore water pressure
Water pressure grows with depth below the water table.
u = γw·(z − zw) = 9.81·5 = 49.05 kPa
Answer
u = 49.05 kPa
15.Consolidation settlement
Answer: S = 19.63 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.
Preconsolidation pressure
σ′p = OCR·σ′0 = 2·75 = 150 kPa
Compare with the preconsolidation pressure
σ′f = 75 + 20 = 95 kPa ≤ 150 kPa
Settlement
The clay stays on its recompression line.
S = Cr·H/(1 + e0)·log₁₀(σ′f/σ′0) = 0.05·6.5/(1 + 0.7)·log₁₀(95/75) = 19.63 mm
Answer
S = 19.63 mm
16.Consolidation settlement
Answer: t = 266.7 days
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 paths
Hdr,lab = 25/2 = 12.5 mm = 0.0125 m
Hdr,field = 2 m
Scale the time
t = Tv·Hdr²/cv with the same T_v and cv in the lab and the field.
tfield = 15·(2/0.0125)² = 384000 min
tfield = 384000/1440 = 266.7 days
Answer
t = 266.7 days
17.Hydrostatic force
Answer: F = 47.82 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 = 2.5 + 1.5/2 = 3.25 m
A = H·b = 1.5·1 = 1.5 m²
Resultant force
F = ρ·g·yc·A = 1000·9.81·3.25·1.5 = 47.82 kN
Answer
F = 47.82 kN
18.Hydrostatic force
Answer: F = 29.43 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 + 1/2 = 1.5 m
A = H·b = 1·2 = 2 m²
Resultant force
F = ρ·g·yc·A = 1000·9.81·1.5·2 = 29.43 kN
Answer
F = 29.43 kN
19.Pipe friction & head loss
Answer: hf = 142.8 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·0.05²/4 = 0.001963 m²
V = Q/A = 0.006/0.001963 = 3.056 m/s
Velocity head
V²/(2g) = 3.056²/(2·9.81) = 0.4759 m
Darcy–Weisbach
hf = f·(L/D)·V²/(2g) = 0.015·(1000/0.05)·3.056²/(2·9.81) = 142.8 m
Answer
hf = 142.8 m
20.Pipe friction & head loss
Answer: Q = 57.46 L/s
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.
Loss coefficients
f·L/D = 0.018·100/0.15 = 12
ΣK = 0.5 + 4·0.3 + 2 + 1.0 = 4.7
Energy equation
Both surfaces are open to the air and practically at rest, so all of Δz is lost in the pipe.
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 = 3·2.5 = 7.5 m²
P = b + 2y = 3 + 2·2.5 = 8 m
R = A/P = 0.9375 m
Velocity
V = (1/0.022)·0.93752/3·0.0021/2 = 1.947 m/s
Flow rate
Q = A·V = 7.5·1.947 = 14.6 m³/s
Answer
Q = 14.6 m³/s
22.Open-channel flow (Manning)
Answer: S = 0.004828 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 = (2 + 1·1.5)·1.5 = 5.25 m²
P = b + 2y·√(1 + z²) = 2 + 2·1.5·√(1 + 1²) = 6.243 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 = 1000·9.81·0.02·56 = 10.99 kW
Shaft power
Pshaft = Ph/η = 10.99/0.65 = 16.9 kW
Answer
Pshaft = 16.9 kW
24.Pumps & pump power
Answer: Pshaft = 21.95 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.
Rate and number of periods
i = 0.048/4 = 0.012
N = 4·6 = 24
Present value
PV = FV/(1 + i)N = 25 000/1.331 = €18 776.20
Answer
PV = €18 776.20
26.Time value of money
Answer: FV = 46758 €
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.
You paid in €38 400 yourself; the rest is interest.
27.NPV & IRR
Answer: NPV = −10660 €
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.
Present value of each cash flow
CF0 = −45 000
CF1/(1 + 0.15)1 = 19 000/1.15 = 16 521.74
CF2/(1 + 0.15)2 = 14 000/1.322 = 10 586.01
CF3/(1 + 0.15)3 = 11 000/1.521 = 7 232.68
Add them up
NPV = €−10 659.57
Answer
NPV = €−10 659.57
NPV is negative, so the project earns less than the required return.
28.NPV & IRR
Answer: IRR = 6.023 %
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.
Bracket the IRR
NPV falls as the rate rises, so the IRR lies between a rate with positive NPV and one with negative NPV.
NPV(5%) = 317.46
NPV(10%) = −1 157.02
Narrow down
Linear interpolation gives a first estimate; repeating it (or a calculator's IRR function) gives the exact rate.
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 sum
μ = 32 min, σ = √(1.5² + 2²) = 2.5 min
Standardise
z = (29.5 − 32)/2.5 = −1
Upper tail
P = 1 − Φ(−1) = 1 − 0.1587 = 0.8413
Answer
P = 0.8413
30.Normal distribution
Answer: x = 245.8 g
From an area back to z: Φ(z) is the area to the left of z. For a left-tail area A, find z with Φ(z) = A in the table. A right-tail area A means Φ(z) = 1 − A. A central area A between −z and z leaves (1 − A)/2 in each tail, so Φ(z) = (1 + A)/2. For a value x, use x = μ + zσ.
Area to the left
Φ(z) = 0.2
z from the table
z ≈ −0.84
Back to the original units
x = 250 − 0.84·5 = 245.8 g
Answer
x = 245.8 g
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