Engineering Economic Analysis

(Chris Devlin) #1

292 OTHER ANALYSISTECHNIQUES


"shoWlegend" off. Similarly,we can turn the x-axis gridlines on. The line style for these gridlines
should be changed to match they-axisgridlines. This allows us to see that the breakeventime is
between 14 and 15 years.
To make the graph less busy, change the scale on thex axis so that the interval is 5 years
rather than automatic.Also eliminate the gridlines for theyaxis (by selecting the chart area, chart
options, and gridlines tabs). The graph size can be increased for easier reading, as well. This may
require specifying art interval of 10,000 for the scale of theyaxis.
Finally to add the labels for the full-capacitycurve and the two-stagecurve, findthe toolbar for
graphics, which is open when the chart is selected (probably along the bottom of the spreadsheet).
Select the text box icon, and click on a location close to the two-stage chart. Type in the label for
two-stage construction. Notice how including a return and a few spaces can shape the label to fit
the slanted line. Add the label for full construction. Figure 9-8 is the result.

FIGURE 9-8 Spreadsheet of Figure 9-7 with improved graph.

-- -

A B C D
1 Time Full Capacity Two Stage

(^20) 140,000 100,000
(^3) n 120,000
4
5 life 40
6 i 8%
7 Present worth of
8 n Full Capacity Two Stage
(^90) 140,000
(^105) 140,000 181,670 =$C$2+PV($B$6,A1O,0, -$C$3)
(^1110) 140,000 155,583
(^1220) 140,000 125,746
(^1330) 140,000 111,925
(^14) I -
(^15) tj155,0001"---... Two Stage ,I. -
16
U^0 ... ...... Construction .I
..... 0 ......... ,, -
17
"€ 145,000
I- ......... ,I Full Capacity -
18 ............,I Construction
19 .',. -
135,000
f- '' ......... -
20 '" I, ............
p.. .. ............ -
(^21) : '"
22 125,000 10 15 20 -



  • 23 Years until Capacity Needed
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