Engineering Economic Analysis

Applying PresentWorthTechniques 159 An investor paid $8000 to a consulting firm to analyze what he might do with a small parcel ...

160 PRESENTWORTH ANALYSIS AI(ernative C, Gas Station NPW =-95,000 + 1O,500(P/A, 10%,20) +30,000(P/F,10%,20) = -95,000 + 89,400 + ...

. Applying Present Wort~ Techniques 161 \:~1{~ ~~~~ Two pieces of construction equipment are being analyzed: Year o 1 2 3 4 5 6 ...

162 PRESENTWORTH ANALYSIS PW of benefits =300(P/A,8%, 8) + (700- 300)(P/F,8%, 1) 100(P/ G, 8%,4)(P/F,8%,4) =300(5.747) + 400(0 ...

Spreadsheets and Present Worth 163 FIGURE5-~ Spreadsheet with monthly cash flows. Since the costs are uniform, th~factor ~olt1ti ...

164 PRESENTWORTH ANALYSIS SOLUTION. It is easiest to calculate the yearly net revenue per unit before building the spreadsheet s ...

--- -._--- Problems 165 Present sumsPare beginning of period and all series receipts or disbursementsA and future sumsFoccur ...

166 PRESENTWORTH ANALYSIS 5-5 Compute the value ofPfor the following diagram. 5-8 Ifi=10%, what is the value ofP? B B B B 120 12 ...

--- --- -- ---------- Problems 167 5-10 Using 5% nominal interest, compounded continu- ously, solve for,P. 500 500 LJ.. .i 1 2 3 ...

168 PRESENTWORTH ANALYSIS I ! LL months. The company treasurer has indicated that he could pay for the equipment as follows: Dat ...

.. - __h'--'-' --- --- Problems 169 two countries. The cost of the new bridge, which will be the longest bridge in the world, sp ...

.....- 170 PRESENTWORTH ANALYSIS 8% interest, what is the builder's capitalized cost to const:l1Jctthe plant and future replacem ...

-. "--. --- Problems 171 Construction Cost Annual Maintenance Cost operation for 30 years. The telephone company is evalua ...

I ---.---- 172 PRESENTWORTH ANALYSIS machine will have maintenance and operating costs of $4000 a year and will provide an annua ...

Problems 173 the ties then in place have a remaining useful life of 4 years or more, they will be used by the railroad elsewhere ...

174 PRESENTWORTH ANALYSIS 5-67 Using capitalized cost, detennine which type of road surface is preferred on a particular section ...

I Problems 175 Use a 10-year analysis period for the four mutually exclusive alternatives. At the end of 5 years, Alterna- tives ...

After Completing This Chapter... The student should be able to: ·Defineequivalent uniform annual cost (EUAC)andequivalent unifor ...

... Annual Cash Flow Analysis Lowest Prices on the Net! Buy Now! Next time you review your e-mail and scroll through the spam, t ...

-- -- - - - __ - ___ -. h_ __ __. ___ 178 ANNUAL CASH FLOW ANALYSIS This chapter is devotedto annual cash flow analysis-the seco ...