slides session 2 TVOM class Pt1 chrt 3.ppt

P 100000 5941845 principles of engineering

Info icon This preview shows pages 41–57. Sign up to view the full content.

View Full Document Right Arrow Icon
P =NPV(10%,50000,40000,30000,40000,50000)-100000 = $59,418.45
Image of page 41

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition Examples 2.13 & 2.16 Determine the present worth equivalent of the following series of cash flows. Use an interest rate of 6% per interest period. P = $300(P|F 6%,1)- $300(P|F 6%,3)+$200(P|F 6%,4)+$400(P|F 6%,6) +$200(P|F 6%,8) = $597.02 P =NPV(6%,300,0,-300,200,0,400,0,200) P =$597.02 End of Period Cash Flow 0 $0 1 $300 2 $0 3 -$300 4 $200 5 $0 6 $400 7 $0 8 $200
Image of page 42
Principles of Engineering Economic Analysis , 5th edition Computing the Net Future Worth of Computing the Net Future Worth of Multiple Cash flows Multiple Cash flows
Image of page 43

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition Example 2.15 Determine the future worth equivalent of the CFD shown below, using an interest rate of 10% compounded annually. F =10000*FV(10%,5,,-NPV(10%,5,4,3,4,5)+10) = $95,694.00
Image of page 44
Principles of Engineering Economic Analysis , 5th edition Examples 2.14 & 2.16 Determine the future worth equivalent of the following series of cash flows. Use an interest rate of 6% per interest period. F = $300(F|P 6%,7)-$300(F|P 6%,5)+$200(F|P 6%,4)+$400(F|P 6%,2)+$200 F = $951.59 F =FV(6%,8,,-NPV(6%,300,0,-300,200,0,400,0,200)) F =$951.56 End of Period Cash Flow 0 $0 1 $300 2 $0 3 -$300 4 $200 5 $0 6 $400 7 $0 8 $200 (The 3¢ difference in the answers is due to round-off error in the tables in Appendix A.)
Image of page 45

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition
Image of page 46
Principles of Engineering Economic Analysis , 5th edition Common Cash Flow Series Common Cash Flow Series
Image of page 47

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition Uniform Series Gradient Series Geometric Series
Image of page 48
Principles of Engineering Economic Analysis , 5th edition DCF Uniform Series Formulas DCF Uniform Series Formulas
Image of page 49

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition Uniform Series A t = A t = 1,…,n
Image of page 50
Principles of Engineering Economic Analysis , 5th edition P occurs 1 period before first A P A A A A A A P = A[(1+i) n -1]/[i(1+i) n ] P = A(P|A i%,n) P = [ =PV(i%,n,-A) ] A = Pi(1+i) n /[(1+i) n -1] A = P(A|P i%,n) A = [ =PMT(i%,n,-P) ]
Image of page 51

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition P occurs 1 period before first A P A A A A A A P = A[(1+i) n -1]/[i(1+i) n ] P = A(P|A i%,n) P =PV(i%,n,-A) A = Pi(1+i) n /[(1+i) n -1] A = P(A|P i%,n) A =PMT(i%,n,-P)
Image of page 52
Principles of Engineering Economic Analysis , 5th edition F occurs at the same time as last A F A A A A A A F = A[(1+i) n -1]/i F = A(F|A i%,n) F = [ =FV(i%,n,-A) ] A = Fi/[(1+i) n -1] A = F(A|F i%,n) A = [ =PMT(i%,n,,-F) ]
Image of page 53

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition F occurs at the same time as last A F A A A A A A F = A[(1+i) n -1]/i F = A(F|A i%,n) F =FV(i%,n,-A) A = Fi/[(1+i) n -1] A = F(A|F i%,n) A =PMT(i%,n,,-F)
Image of page 54
Principles of Engineering Economic Analysis , 5th edition P = A(P|A i%,n) = A (2.22) A = P(A|P i%,n) = P (2.25) P occurs one period before the first A F = A(F|A i%,n) = A (2.28) A = F(A|F i%,n) = F (2.30) F occurs at the same time as the last A n n i i i ) 1 ( 1 ) 1 ( 1 ) 1 ( ) 1 ( n n i i i i i n 1 ) 1 ( 1 ) 1 ( n i i Summary Summary
Image of page 55

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Principles of Engineering Economic Analysis , 5th edition Example 2. 17 Troy Long deposits a single sum of money in a savings account that pays 5% compounded annually. How much must he deposit in order to withdraw $2,000/yr for 5 years, with the first withdrawal occurring 1 year after the deposit?
Image of page 56
Image of page 57
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern