L15_ECE4001_Fall_2008

# L15_ECE4001_Fall_2008 - F/P P/F Lecture 15 Engineering...

This preview shows pages 1–3. Sign up to view the full content.

Slide #1 ECE 4001 L15 T. Michaels © 2008 Lecture 15 Engineering Economics: Applications and Examples Slide #2 ECE 4001 L15 T. Michaels © 2008 F/P P/F A/F F/A A/P P/A Gradient Factors Slide #3 ECE 4001 L15 T. Michaels © 2008 All Factors Obey Rules of Algebra ( / ) A P A P = 1 ( / ) ( / ) F P P F - = 1 1 P = (P/F ) F 1 1 F = (F/P) (P/F ) F ETC. .. Slide #4 ECE 4001 L15 T. Michaels © 2008 Cash Flow Diagrams

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Slide #5 ECE 4001 L15 T. Michaels © 2008 Arithmetic Gradient Series Payment End of Year \$0 1 \$1000 2 \$2000 3 \$3000 4 \$4000 5 Compute present value for above payments for an interest rate of 4% (note payment total is \$10,000 and G is the payment made at the end of year 2) Slide #6 ECE 4001 L15 T. Michaels © 2008 Present Value of Arithmetic Gradient Series (assume interest rate of 4%, G = \$1000, 4 payments with n = 5) ( / , %, ) ( / ,4%,5) 1000 P P G i n G P G = = Slide #7 ECE 4001 L15 T. Michaels © 2008 Present Value of Arithmetic Gradient Series (assume interest rate of 4%, G = \$1000, 5 yrs of payments) 5 2 5 ( / , %, ) ( / ,4%,5) 1000 [(1.04) (0.04) 5 1] 1000 8,554.67 (0.04) (1.04) P P G i n G P G P = = - ⋅ - = = Note payment total = \$10,000 Slide #8 ECE 4001 L15 T. Michaels © 2008 Arithmetic Gradient Series Plus Annualized Series Payment End of Year \$1000 \$1000 \$0 1 \$1500 \$1000 \$500 2 \$2000
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 6

L15_ECE4001_Fall_2008 - F/P P/F Lecture 15 Engineering...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online