SWIN BUR NE SWINBURNE UNIVERSITY OF TECHNOLOGY SARAWAK CAMPUS Swinburne University of Technology (Sarawak Campus) HES5175 Cost Engineering (Semester 2, 2009) FINAL EXAMINATION 40% of Total Unit Mark Time Allowed: 2 hours Reading time: 10 minutes Candidate's ID No: Marking summary (to be used by the exam markers only) Question # 1 Possible marks 15 Actual marks 2 15 3 20 4 30 5 20 Total 100 Cost Engineering HES5175: Semester 2, 2009 Page 1 of 7
INSTRUCTIONS TO CANDIDATE PLEASE READ CAREFULLY This paper contains 7 printed pages (inclusive of the cover sheet). Exam Duration Two (2) hours Reading Time Ten (10) minutes Materials Allowed ' Calculators (any type) only Answering Requirements · Answer all 5 questions. " Total marks for this exam = 100 marks. · Questions are NOT of equal value. " Start each question on a new page. " Answers must be well set out with clear calculations and neat writing. " Question 5c - Precedence Diagram is to be answered on sheet 6 of this examination paper. Sheet 6, when complete with your name and ID, is to be inserted into your answer booklet and handed in. . Submission of Exam and Answer Scripts Candidates must ensure that the exam script and answer script are SECURELY attached together before submitting them to an invigilator. Cost Engineering HES5175: Semester 2, 2009 Page 2 of 7
Question 1 (a) List the basic three levels of estimate and describe how they are prepared, what they are used for and what accuracy they aim for? (b) What sort of estimate does a contractor normally prepare for a bid and what is the expected accuracy? (c) Explain why estimates can't ever be accurate. (9+3+3 = 15 marks) Question 2 You are required to propose a selection between two production equipment options where you supply the equipment, overhaul it once per year and dispose of it later without a final overhaul. The two options are outlined in the table below. Ignore tax, and use a real cost of finance of 18% payable at the end of each year. Calculate the net present worth of each option and propose which to select. Your proposal must show your workings as a supporting table and a recommendation with any special factors to consider. List any assumptions you have made. Buy Annual Overhaul $1,000 $3,000 Salvage at end of life $6,000 Life in years 6 Option A $17,000 Option B $8,000 $4,000 3 (15 marks) Cost Engineering HES5175: Semester 2, 2009 Page 3 of 7