Class 12 9-28

Class 12 9-28 - Class 12 Basic Evaluation Methods ISE 2014...

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Click to edit Master subtitle style Class 12 – Basic Evaluation Methods ISE 2014 Fall 2011
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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, Wednesday Oct. 12th 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 Minimum Attractive Rate of Return (MARR) as out interest rate in order to test the viability of projects or decisions Today we’re going to learn 4 methods for evaluating single projects
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What We Know Manipulating cash flows in time using our tools doesn’t change their sign (+/-) Only combining positive and negative cash flows can change their sign Our first three methods will evaluate a project or decision at different points in time, but their conclusions will all be the
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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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This note was uploaded on 10/04/2011 for the course ISE 2014 at Virginia Tech.

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Class 12 9-28 - Class 12 Basic Evaluation Methods ISE 2014...

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