Lecture_13.2_Engineering_Economics_II

Lecture_13.2_Engineering_Economics_II - AE309 Lecture 13.2...

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AE309 Lecture 13.2 Engineering Economics II Reference: Lindeburg, Engineering Economic Analysis Notations Equivalence & Cash Flow Diagrams Today’s Agenda 1. Payment Series Review 2. Payment Series Examples 3. Analysis Methods: o Present Worth Analysis o Equivalent Uniform Annual Cost Method Types of Payment Series Rome – Summer 2007 and 10 semester vs. 11 semester MAE/BAE a b c d
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Example 4: Present Value and Future Value of Single Payment P/F & F/P What is the Present Value of the given cash flow? P = Present Value P = P(a) + P (b) + P(c) P = P(a) + F(1+ie) -n + F(1+ie) -n P = P(a) + F(P/F, i e ,n) + F(P/F, i e ,n) P = + (P/F, %, ) + (P/F, %, ) P = ( ) + ( ) + ( ) P = + + P = $ What is the Future Value of the given cash flow? F = Future Value F = F (a) + F (b) + F (c) F = P(1+i e ) n + P(1+i e ) n + F (c) F = P(F/P, i e , n) + P(F/P, i e , n) + F (c) F = ( )(F/P, %, ) + (F/P, % , ) + ( ) F = ( )( ) + ( ) + ( ) F = + + F = $ 1 2 $50 $200 $150 0
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This note was uploaded on 04/01/2008 for the course A E 202 taught by Professor Ling,mosesdf during the Fall '07 term at Pennsylvania State University, University Park.

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Lecture_13.2_Engineering_Economics_II - AE309 Lecture 13.2...

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