Chapter14Slides

Chapter14Slides - A Time 1 0 2 1 3 2 4 3 5 4 6 5 7 8 9 10...

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Time Cash Flows A PW(A) Cash Flows B PW(B) Cash Flows B-A 0  $(1,000,000.00)  $(1,000,000.00)  $(2,000,000.00)  $(2,000,000.00)  $(1,000,000.00) 1  $2,000,000.00   $1,739,130.43   $2,000,000.00   $1,739,130.43   $ -  2  $3,000,000.00   $2,268,431.00   $3,000,000.00   $2,268,431.00   $ -  3  $4,000,000.00   $2,630,064.93   $4,000,000.00   $2,630,064.93   $ -  4  $4,000,000.00   $2,287,012.98   $6,000,000.00   $3,430,519.47   $2,000,000.00  5  $4,000,000.00   $1,988,706.94   $7,000,000.00   $3,480,237.15   $3,000,000.00   $9,913,346.29   $11,548,382.99  Sensitivity MARR Present Worth MARR Error PW Deviation 10.0%  $2,228,790.88  -33.3% 36% 12.5%  $1,913,377.03  -16.7% 17.0% 15.0%  $1,635,036.70  0.0% 0.0% 17.5%  $1,388,715.62  16.7% -15.1% 20.0%  $1,170,138.89  33.3% -28.4% Oil Price Present Worth Oil Error PW Deviation  $10.00   $317,518.35  -50.0% -81%  $15.00   $976,277.52  -25.0% -40%  $20.00   $1,635,036.70  0.0% 0%  $25.00   $2,293,795.87  25.0% 40%  $30.00   $2,952,555.05  50.0% 81% A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39
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PW(B-A) MARR 15.0%  $(1,000,000.00) Oil 20  $ -   $ -   $ -   $1,143,506.49   $1,491,530.21   $1,635,036.70  G H I J K L 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39
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Project Investment Life Cost/barrel Volume/yr PW 1  $(2,000,000.00) 20 9 60000  $2,131,158.77  2  $(1,000,000.00) 10 14 40000  $204,504.47  3  $(1,500,000.00) 7 8 40000  $497,001.47  4  $(2,100,000.00) 25 10 50000  $1,132,074.54  5  $(1,600,000.00) 16 9 20000  $(290,068.33) Price Error Project 1 Error Project 2 Error 5 -75.0%  $(3,502,239.55) -264.3%  $(2,806,756.71) -1472.5% 10 -50.0%  $(1,624,440.11) -176.2%  $(1,803,002.98) -981.6% 15 -25.0%  $253,359.33  -88.1%  $(799,249.25) -490.8% 20 0.0%  $2,131,158.77  0.0%  $204,504.47  0.0% 25 25.0%  $4,008,958.21  88.1%  $1,208,258.20  490.8% 30 50.0%  $5,886,757.66  176.2%  $2,212,011.92  981.6% 35 75.0%  $7,764,557.10  264.3%  $3,215,765.65  1472.5% -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0. -20 -15 -10 -5 0 5 10 15 20 Oil Price Estimate Error Project PW Error 6000000 8000000 A B C D E F 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
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0 5 10 15 20 -4000000 -2000000 0 2000000 4000000 Price of Oil PW A B C D E F 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
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Price 20 MARR 0.15 Project 3 Error Project 4 Error Project 5 Error  $(1,999,250.37) -502.3%  $(3,716,037.27) -428.3%  $(2,076,338.79) -615.8%  $(1,167,166.42) -334.8%  $(2,100,000.00) -285.5%  $(1,480,915.30) -410.5%  $(335,082.47) -167.4%  $(483,962.73) -142.8%  $(885,491.82) -205.3%  $497,001.47  0.0%  $1,132,074.54  0.0%  $(290,068.33) 0.0%  $1,329,085.42  167.4%  $2,748,111.81  142.8%  $305,355.16 
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This note was uploaded on 01/24/2011 for the course IE 226 taught by Professor Tonkay during the Spring '09 term at Lehigh University .

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Chapter14Slides - A Time 1 0 2 1 3 2 4 3 5 4 6 5 7 8 9 10...

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