Lecture 04 examples

Lecture 04 examples - Lecture 4 Engineering Economics...

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1 Lecture 4 Engineering Economics Examples
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2 Example 1 Alternative 1 Alternative 2 Year 0 ($100.00) ($100.00) Year 1 $50.00 $40.00 Year 2 $50.00 $40.00 Year 3 $50.00 $75.00
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3 Example 1 ($20) ($10) $0 $10 $20 $30 $40 $50 $60 0% 5% 10% 15% 20% 25% 30% 35% Rate NPV NPV Alt 1 NPV Alt 2 Alternative 1 Alternative 2 Year 0 ($100.00) ($100.00) Year 1 $50.00 $40.00 Year 2 $50.00 $40.00 Year 3 $50.00 $75.00
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4 Example 2 Year A B C 0 ($1,000.00) ($1,000.00) ($1,000.00) 1 $200.00 $250.00 $500.00 2 $200.00 $250.00 $500.00 3 $200.00 $250.00 $500.00 4 $200.00 $250.00 $300.00 5 $200.00 $250.00 $200.00 6 $200.00 $250.00 $150.00 7 $200.00 $250.00 $100.00 8 $200.00 $250.00 $50.00 9 $200.00 $250.00 $50.00 10 $1,200.00 $250.00 $50.00 Sum $2,000.00 $1,500.00 $1,400.00
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5 Example 2  ($1,000) ($500) $0 $500 $1,000 $1,500 $2,000 $2,500 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Interest Rate  NPV  Alt A Alt B Alt C Year Alt A Alt B Alt C 0 ($1000) ($1000) ($1000) 1 $200 $250 $500 2 $200 $250 $500 3 $200 $250 $500 4 $200 $250 $300 5 $200 $250 $200 6 $200 $250 $150 7 $200 $250 $100 8 $200 $250 $50 9 $200 $250 $50 10 $1200 $250 $50
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6 Example 3 Alternative 1 Alternative 3 Year 0 ($100.00) $50.00 Year 1 $50.00 $40.00 Year 2 $50.00 $40.00 Year 3 $50.00 ($150.00)
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7 Example 3  ($20) ($10) $0 $10 $20 $30 $40 $50 0% 5% 10% 15% 20% 25% 30% 35% Interest Rate  NPV NPV Alt 1 NPV Alt 3 Year Alt 1 Alt 3 0 ($100) $50 1 $50 $40 2 3 ($150)
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8 Example 4 Alt 1 Alt 4 Year 0 ($100.00) ($85.00) Year 1 $50.00 $100.00 Year 2 $50.00 $115.00 Year 3 $50.00 ($133.00)
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9 Example 4  ($20) ($10) $0 $10 $20 $30 $40 $50 $60 0% 5% 10% 15% 20% 25% 30% 35% Interest Rate NPV NPV Alt 1 NPV Alt 4 Year Alt 1 Alt 4 0 ($100) ($85) 1 $50 $100 2 $50 $115 3 $50 ($133)
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This note was uploaded on 09/20/2010 for the course SDS 88223 taught by Professor Fischbeck during the Spring '10 term at Carnegie Mellon.

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Lecture 04 examples - Lecture 4 Engineering Economics...

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