Engineering Economic Analysis

104 MORE INTERESTFORMULAS

gradient. Instead, we willsubtract an increasing gradient from an assumed uniform series of

payments.

6000

o t

0-1-2-3-4 - 0-1-2-3-4

24'

[

000 18,000

i

12,000

t 60;0

= 0-1-2-3-4

1 1 1 1

A' A' A' A'

A'= 24,000- 6000(AjG,10%,4)

=,24,000 -- 6000(1.38t)

= 15,714 rupees

The projected equivalent uniform maintenanceand repair cost is 15,714rupees per year.

oS

Computethe value ofPin the diagram. Use a 10% interest rate.

150

50

o t

0-1-2-3-4-5~6

100

r

p

~.,,_. "'.-; ",

SptlJ11()~' ,.

With the arithmetic gradient series present worth factor, we can compute a presentsumJ. I

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