ISE2014_Class12

ISE2014_Class12 - Class 12 Basic Evaluation Methods ISE...

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Click to edit Master subtitle style Class 12 – Basic Evaluation Methods ISE 2014 Fall 2010
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Test Feedback As a class you did well – good job! We’ve been getting great participation in office hours this semester, hopefully it helped I’ll have my office hours today at 211 Durham to return exams and answer any questions Re-grade form is posted on Scholar, Friday is the submission deadline
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Your Toolbox Cash Flow Diagrams P/G F/P A/G P/F P/A
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Chapter 5 Now we’re going to start chapter 5 As we learned last class, we’re going to use the MARR as out interest rate in order to test the viability of projects Today we’re going to learn 4 methods for evaluating projects 3 you already know 1 is new
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What We Know Manipulating cash flows using our tools doesn’t change their sign (+/-) Only combining cash flows can change their sign The general principal of our first three methods is that no matter which method we use, the result will be the same
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Present Worth Method Recall the logic behind evaluating a single project or decision… Company has a MARR below which it is not interested Investment problems have some kind of cost and some kind of return We test the project at the company’s MARR in order to determine if the company should accept
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ISE2014_Class12 - Class 12 Basic Evaluation Methods ISE...

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