INDEX 597joint distributions, 31.1-13
ofloss, 313
Profit and loss statement, 544
Project duration public sector,506-07
Project financing public sector, 505
Project politics public sector, 507-09
Project proposal, 518
Property types, 340
Pruned branch, 316
Public sector: analysis viewpoint, 492-93
investment objective, 490-91
project duration, 506-07
project financing, 505
project politics, 507-09
selecting interest rate, 493-95
PW plot versus interest rate, 209-10RRate of return: analysis, 212
calculating, 205-9
difficulties in solving for, 229-40
Real interest rate, 441-42
Real property, 340
Recovery period, 339
Recurring cost, 34
Repeatability assumptions not acceptable, 418-19
Replacement analysis: after-tax, 420-27
decision map, 401
defender and challenger first costs, 415-18
future challengers, 419-20
reasons, 400
repeatability assumptions, 408-9
repeatability assumptions not acceptable, 418-19
spreadsheets, 429
tp"J,nique 1: increasing defender's marginal costs,
407-13.
technique 2: defender's marginal costs not increasing,
413-15
technique 3: defender's marginal cost data not
available, 415-18
Risk,320-24
standard deviation, 322
of unplanned replacement, 400
versus return, 324-26
Rule of 78's, 137
s
Sensitivity analysis, 285-89
spreadsheets, 289-92
Shadow prices, 10
Simple interest, 64-65Simulation,326-29
Single payment: compound amount factor, 74
formulas, 73-81
present worth factor, 76
Sources of capital, 474
Spreadsheets, 122-26
absolute address, 556
after-tax cash flows, 385-86
to analyze loans, 190-93
amortization schedule, 190
annuity functions, 122-23
block functions, 123-24
breakeven analysis, 289-92
copycommand,555-56
cumulative investments and opportunity cost of
capital, 483-85
data block, 555
depreciation, 362-64
drawing cash flow diagrams, 52
evaluating how many roots, 234-38
formulas, 555
GOAL SEEK, 262-63
graphing, 124-26
incremental analysis, 262-63
inflation, 462-64
inkoduction, 554-57
present worth, 162-64
rate of return analysis, 220-21
relative address, 556
replacement analysis, 429
sensitivity analysis, 289-92
Standard deduction, 373
Standard deviation, 322
Statistically independent, 311
Skaight-line depreciation, 342-44
Sum-of-years' -digits depreciation, 344-45
Sunk cost, 32, 145TTax rates: combined federal and state, 379
corporate, 377-78
individual, 375-76
selecting for economy studies, 380
Taxable income: firms, 374-75
individual,372-73
Time value of money, 64u
Uniform series: capital recovery factor, 89
compound amount factor, 87
formulas, 86-90-;
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