Engineering Economic Analysis

Calculating Rate of Return 211 950 40J t t 0-1-2 1 1000 Since $40 is received each 6 months, we will solve the problem using a 6 ...

212 RATEOF RETURNANALYSIS The valUeof the IRR is between 4 and 5%. By interpolation, ( 999.96 -950.00 ) ... 4.43% IRR 4%t (1%) 9 ...

-. -- ... - -.. - - _.. -- - .- Rate of Return Analysis 213 If an electromagnet is installed on the input conveyor ...

214 RATEOF RETURN ANALYSIS From the plot of these data in Figure 7-5, we see that NPW=0 ati=8%. 217 '€ ~ i:$G) '" Q..,~ ...G) Z ...

Rateof Return Analysis 215 The choic~ between the two alternatives reduces to an examination of the differences between them. We ...

216 RATEOF RETURNANALYSIS Thus, . 20 (PjF, 1,1)= - = 0.7143 28 From the compound interest tables: rate of return=40%. One may be ...

Rate of Return Analysis 217 :! .... !1'~.~ Solve Example 7-6 again,but this time compute the interest rate on the increment (Alt ...

----------- 218 RATEOF RETURNANALYSIS of return (~IRR ~ MARR). When looking at increments of borrowing, we accept the in- cremen ...

.----.-------- Rate of Return Analysis 219 Payback Period ,In discussing present worth analysis and annual cash flow analysis, a ...

220 RATEOF RETURNANALYSIS PW of cost of differences=PW of benefits of differences 500 =25(P/A, i,12) +150(P/F, i,6) + 100(P/F, i ...

Summary Summary FIGURE 7-6 Graphing present worth versusi. yaxis on this graph has been modified so that thexaxis intersects at ...

), i j( ,! ,) :! ) L 222 RATEOF RETURNANALYSIS Rate of return analysis: Rate of return analysis is the most frequently used meth ...

7-3 Problems For the following diagram, compute the rate of return. 25 2f I 15 i 10 l t 0-1-2-3-4-5 1 42.55 7-4 For the followin ...

224 RATEOF RETURNANALYSIS 7-13 Compute the rate of return for the following cash flow. Year Cash Flow o -$500 1-3 0 4 +4500 7-14 ...

Problems 7-25 Upon graduation, every engineer must decide whether to go on to graduate school. Estimate the costs of going full ...

.....---------- .- ,. 226 RATEOF RETURNANALYSIS 7-35 You spend $1000 and in return receive two payments be willing to lend AI on ...

Problems Non-Negotiable INE 1/96 For the Amount of $3000 or $2000 or $1000 Pay to the Order of I Feel Rich Limited Time Offer Do ...

228 RATEOF RETURNANALYSIS 7-47 Two alternatives are as follows: Year o 1 2 3 A -$2000 +800 +800 +800 B -$2800 +1100 + 1100 +1100 ...

Appendix 7A Difficulties in Solving for an Interest Rate 7-55 The company uses a MARR of 15%. Using rate of return analysis, wpi ...

1 230 RATEOF RETURNANALYSIS The Going Aircraft Company has an opportunity to supply a large airplane to Interair, a foreign airl ...