ENGINEERING ECONOMICS

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Evangeline McDonald
5 years ago
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1 ENGINEERING ECONOMICS Facto Nam Covts Symbol Fomula Sgl Paymt Compoud Amout to F gv P (F/P, %, ) ( + ) Sgl Paymt Pst Woth to P gv F (P/F, %, ) ( + ) Ufom Ss Skg Fud to A gv F (A/F, %, ) Captal Rcovy to A gv P (A/P, %, ) Ufom Ss Compoud Amout Ufom Ss Pst Woth Ufom Gadt ** Pst Woth to F gv A (F/A, %, ) to P gv A (P/A, %, ) to P gv G (P/G, %, ) ( + ) ( + ) ( + ) ( + ) ( + ) ( + ) ( + ) ( + ) ( + ) Ufom Gadt Futu Woth Ufom Gadt Ufom Ss to F gv G (F/G, %, ) to A gv G (A/G, %, ) ( + ) ( + ) NOMENCLATURE AND DEFINITIONS A... Ufom amout p tst pod B... Bft BV... Book Valu C... Cost d... Combd tst at p tst pod D j... Dpcato ya j F... Futu woth, valu, o amout f... Gal flato at p tst pod G... Ufom gadt amout p tst pod... Itst at p tst pod... Aual ffctv tst at m... Numb of compoudg pods p ya... Numb of compoudg pods; o th xpctd lf of a asst P... Pst woth, valu, o amout... Nomal aual tst at S... Expctd salvag valu ya Subscpts j... at tm j... at tm **... P/G = (F/G)/(F/P) = (P/A) (A/G) F/G = (F/A )/ = (F/A) (A/G)... A/G = [ (A/F)]/ NON-ANNUAL COMPOUNDING m = + m Dscout Factos fo Cotuous Compoudg ( s th umb of yas) (F/P, %, ) = (P/F, %, ) = (A/F, %, ) = (F/A, %, ) = (A/P, %, ) = (P/A, %, ) = BOOK VALUE BV = tal cost Σ D j

2 DEPRECIATION Staght L D Acclatd Cost Rcovy Systm (ACRS) D j = (facto) C A tabl of modfd factos s povdd blow. CAPITALIZED COSTS Captalzd costs a pst woth valus usg a assumd pptual pod of tm. Captalzd Costs = P = j C S = BONDS Bod Valu quals th pst woth of th paymts th puchas (o hold of th bod) cvs dug th lf of th bod at som tst at. Bod Yld quals th computd tst at of th bod valu wh compad wth th bod cost. RATE-OF-RETURN Th mmum accptabl at-of-tu s that tst at that o s wllg to accpt, o th at o dss to a o vstmts. Th at-of-tu o a vstmt s th tst at that maks th bfts ad costs qual. A ENGINEERING ECONOMICS (cotud) BREAK-EVEN ANALYSIS By altg th valu of ay o of th vaabls a stuato, holdg all of th oth valus costat, t s possbl to fd a valu fo that vaabl that maks th two altatvs qually coomcal. Ths valu s th bak-v pot. Bak-v aalyss s usd to dscb th pctag of capacty of opato fo a maufactug plat at whch com wll just cov xpss. Th payback pod s th pod of tm qud fo th poft o oth bfts of a vstmt to qual th cost of th vstmt. INFLATION To accout fo flato, th dollas a dflatd by th gal flato at p tst pod f, ad th thy a shftd ov th tm scal usg th tst at p tst pod. Us a combd tst at p tst pod d fo computg pst woth valus P ad Nt P. Th fomula fo d s d = + f + ( f) BENEFIT-COST ANALYSIS I a bft-cost aalyss, th bfts B of a pojct should xcd th stmatd costs C. B C 0, o B/C MODIFIED ACRS FACTORS Rcovy Pod (Yas) 0 Ya Rcovy Rat (Pct)

3 ENGINEERING ECONOMICS (cotud) Facto Tabl - = 0.0% P/F P/A P/G F/P F/A A/P A/F A/G ,0.,., Facto Tabl - =.00% P/F P/A P/G F/P F/A A/P A/F A/G ,.0,

4 ENGINEERING ECONOMICS (cotud) Facto Tabl - =.0% P/F P/A P/G F/P F/A A/P A/F A/G , Facto Tabl - =.00% P/F P/A P/G F/P F/A A/P A/F A/G ,

5 ENGINEERING ECONOMICS (cotud) Facto Tabl - =.00% P/F P/A P/G F/P F/A A/P A/F A/G , Facto Tabl - =.00% P/F P/A P/G F/P F/A A/P A/F A/G ,

6 ENGINEERING ECONOMICS (cotud) Facto Tabl - =.00% P/F P/A P/G F/P F/A A/P A/F A/G , ,., Facto Tabl - = 0.00% P/F P/A P/G F/P F/A A/P A/F A/G , ,.0,0.,

7 ENGINEERING ECONOMICS (cotud) Facto Tabl - =.00% P/F P/A P/G F/P F/A A/P A/F A/G , ,00.0,., Facto Tabl - =.00% P/F P/A P/G F/P F/A A/P A/F A/G ,. 0,.00,, ,.0,.0,.,,

ENGINEERING ECONOMICS

ENGINEERING ECONOMICS Factor Name Coverts Symbol Formula Sgle Paymet Compoud Amout to F gve P (F/P, %, ) ( + ) Sgle Paymet Preset Worth to P gve F (P/F, %, ) ( + ) Uform Seres to A gve F (A/F, %, ) Skg