Engineering Economic Analysis

Problems 59 machine) calculate thePSEvalue that Padre should publish.(Note:The VMIC-I00 can handle twice the volume of a VMIC-50 ...

<'",.;;,,,~,ji;~!!!-olio- _ ..- After Completing This Chapter... The student should be able to: ·Define and provide examples ...

r - f Interest and Equivalence Going Up in Smoke State governmentsthroughout the United States agreed to a large financialwindf ...

62 INTERESTAND EQUIVALENCE In the first chapter, we discussed the engineering economic decision process. In Chapter 2 we describ ...

-_. - Computing Cash Flows 63 The cash flowsfor both the alternativesin this problem are very simple. The cash flow table, with ...

64 INTERESTAND EQUIVALENCE future. This chapter will provide the methods for comparing the alternatives to determine which motor ...

r- - Time Value of Money 65 Youhave agreedto loan a friend $5000 for 5 years at a simple interest rate of 8% per year. How much ...

-- -- ------...- 66 INTERESTAND EQUIVALENCE In the following table we calculate on a year-to-year basis the total dollar amount ...

Time Value of Money 67 (a) TABLE3-1 Four Plans for Repayment of $5000 in 5 Years with Interestat 8% (e) (f) Total End-of-Year Pa ...

---- - - -. - --._--- -- - --- 68 INTERESTAND EQUIVALENCE added to the debt, increasing it further to $5832. At the end of the f ...

Equivalence 69 interest rate. Then we can judge the relative attractiveness of the two alternatives,not from their cash flows, b ...

... _. --- 70 INTERESTAND EQUIVALENCE TABLE3-2 End-of-Year Payment Schedules and Their Graphs Plan 1: At end of each year pay $1 ...

Equivalence 71 The dollar-years for the four plans would be as follows: Dollar-Years Plan 1 Plan 2 Plan 3 Plan 4 (Money owed in ...

n ..... 72 INTERESTAND EQUIVALENCE Aspredicted,at the higher9% interesteach of the repaymentplansof Table3-1 repaysa present sum ...

-- -- ._--- - -. - --- _.- --- .--- - - -- - -- --.-. " --- --------- Single Payment Compound Interest Formulas 73 Is the least- ...

74 INTERESTAND EQUIVALENCE This may be rearranged by factoringP(1+i), which gives us P(1+ i)(l +i) or If the process is continue ...

Single Payment Compound Interest Formulas 75 If $500 were deposited in a bank savings account, how much would be in the account ...

76 INTERESTAND EQUIVALENCE Thus, F =500(F j P,6%, 3)=500(1.191) =$595.50 Before leaving this problem, let's draw another-diagram ...

Single Payment Compound Interest Formulas 77 Receipts (+) Fo;:; 800 r .. Disbursements(...c.) n=4 p=? i= 0.05 EtOhl thGcornpound ...

I 78 INTERESTAND EQUIVALENCE interest rate per interest period is111z%.For the total3-year duration, there are 12 interest perio ...