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Unformatted text preview: formula b P/A =( (1+i) N1 )/(i(1+i) N = 6.637 A= 45,000*6.637/312.2323 A=956.547 Question 5 First compute the present equivalent of the energy cost during the first operating cycle i= 9%/12 = 0.75% P= 25(P/A,0.75%,3)(P/F,0.75,1)+40(P/A,0.75,3)(P/F,0.75%,7) =185.54 Then compute the total present worth of the energy cost over 3 operating cycles P= 185.54+185.54(P/F,0.75%,12) + 185,54(P/F,0.75,24) = 510.25 Question 6 A P= 300(P/F,0.5%,12)+300(P/F,0.75,12)(P/F,0.5,12)+500(P/f,0.75%,24)(P/F,0.5%,12)+500(P /f,0.5%,12)(P/f,0.75%,24)(P/F,o.5%,12) =1,305.26 B 1,305.26 = 300(P/A, i, 2) +500(P/A, i, 2)(P/f, i,2) This could be solved by using trail and error Using the formula instead of the factors required a trail and error solution at the end...
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 Fall '10
 mattdamomn

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