Engineering

Economy
 Simple Interest
Principal Interest Interest 2

↑ ↑ ↑ P =
2000 i =
5% quarterly
F =
2(2000) n = ?
to
up n

years
P Pi Pi
Quarterly (m 4)
=

F Pt Pin
P(1 + m)mn
=

F =

F =

P(1 + in) Pear 4(n)

2(2000) :
2000 1 + 005

Compound Interest n =
13 940 yr.
.

14 years

Principal Interest Interest 2

↑ ↑ ↑
to
up n

years
P Pi (P + Pi)i P 24 =
n =
2000 -
1626 =
374 years

i 5%
monthly
= -

F2 =
p + Pi + Pi + Piz
m(n)
F2 P(1 + i)2
m
=

F =
P1 +
F =
P(1 + i) "Perear
12(374)
F =
2417 %
F Pl =
+ m)m(n)
F200 =
3 052 428 614
,
, ,
 P
,
5
=
1000 n =
10

i 75%
annually x

In
=
m =

Per
·

0 .
075(10)
F = Pein F =
1000e Fn =

% (1 + 0 08)" 1
.

#21 +
800 11 + 0 08
. *

F =
2 117
, F1 18 87712646Pm
= .

= -

P17 =
16 560 6342
,
.

18 877A
.
=
16560 6342
.

A =
872 6628995 .

F =
P(1 + mp = m

to future to past
multiply divide

↑ A A A %
↓ S =
12 % anala a

Fr ↓ Fzu

Ym(1
(1 + 0 1) m)mn
0
+ 1

o (1
-

F20 =
1000 F =

Fos
.

= +
2000 (1 + 0 1)10
+ .

14186 . 26300 = 11 + 0 . 1721

+ 7000 (1 + 0 1)1 F35
Pas
.

8000 =

11 +
=

A =
247 86 .

#20 =
14 196 26309
, .

A 248
A 272
=

=
 # 700
=
,
000, 000 i =
6% -

annually
n =
50 years Present Worth Present Worth 67136 58 .

PNI = J &
S
2 .
24
*
Investment 30 , 000 30 000
,

700, 000 000 =

(1 + 0 04) .
-1
i
,

MARR-minimum attractive rate of return = =

12 %
30K

S " (1 + 0 12)
2
12608
A =
2 4M I Y
N ↓
I
↓ Fa = .

0 12
.

12 6K 12 6k
- .
12 61 12 6k
.
.

p P
#
=
5 3283-
. pFa - =
67135 94738 .

12600 (1 +0 .

12)9

P = 67136 .

58 an

Annuity= series of equal payments

Gradients= series of unequal payments
STAT
> Arithmetic y A + BX LIN
-

Bu
Sin
>
-
Geometric A = A+ P 5000
=

O B
12345 9%
i =
-

annually
i 8%
in si in in
=

Y in n =
12

50K X Y
1 6000 Fiz =

oa
(1 + 0 .
09) 1
A
F
im (1 + m)mn-1 25000
=

F1z
p =
: p =
7 1607 A
(1 +0 09)
.

5 .

7000 -
1000n A = 7000
Pm =
=
16583 83 .

50000 7 1607 A
n= 1
11 +0 .
087n B =
-
1008 = .

maintenance
cost first cost

7000 1000 n A =
6882 5
A
& - .

Mc + Fc =
16583 . 83 + 50 000 ,

50008
P
6982 46
g

44583 83 A
=
= 7 1608 =
=

A
.

=
-
. .

A
Capitalized Cost = First Cost +
Maintenance Cost+

Depreciation
Cost

First Cost :
FC

Maintenance Cost : P =
E
FC = 50 000 SV = 10%; FC 5000
C
, =
123

si i
--

i
Mc Mc MC
n =
10 yrs =
8%
cost
Depreciation Cost :
(Sinking Fund Method) maintenance
50
, 000 5000
2C
-

=
50000 + 0 +
(1 + 0 -08)1 7
-

Dm = (1 + i)m 1

(c =
88829 687.

(fc SV)
To
p A
-

d = 88820 687(0 08)

=
=
Ac = Cr =

(1 + i)" 1
.
.

i
CR =
7106 326991
.

FC
-

SV
de
(1 + i)
-

FC -

Su = ↑(1 + i)
invested
d =
sinking fund ·

yearly at rate
a
of i

Fc S
P =
mc
-

Cc Fc + +
(1 +i) n 1(c =
=

Annual Profit
Rate of Return
AC =
CR =
CCi Fixed Cost +
Working Cost

2 , 500 ,
000
Rate of Return
=
, 000, 000 + 2, 000 , 000
10

Rate of Return= 20 83 .
%
 Benefit
Breakeven Savings-Cost Benefii
t 180 i 7%
annually
=

; BCR
=

, 000
↓ ↳
Annual Cost =
CCi
per year 180k

FC = 50, 000 MARR = i =

12 %
was win wr wr Was G w
Savings-600/day n 10 yrs SV 0
07
40008
= =

#8 =
(10 .

50 000 -
0

(0 12) + ( 12)
,

10

60 nout 50 , 000
.

1)
.

+0 .

Fj
P = =
358277 P1
07)8
.

(1 + 0 .

Udays = 14 7484
.

358277 91 .

=
1 99x2
Udays 15 days
.

180 000 ,

Breakeven ; Annual Profit -

Annual Cost Cost = 80
, 000 Annual Profit =
25k - 6k =
19k
↳
Annual Cost =
CCi Benefit =? i =
12 %

Y Sheak
FC S
(
18

Mc
↑
Annual Proft Fc + t

Has
= =

(1 +i)" 1
-

FC 16000 Profit 3600/yr

19000 (1 + 0 1 2 T
10
= =

#10 =

Mc =
360/yr i = 10 %

16000 8 p-To 107354 2375

-
=

1)
.

3600 = 16000 (0 .
+ 360 +
(1 + 0 14 7 .
110

n= 7 14 yes
.
BCR =
107354 2375 .

= 1 34
.

n =
8 years 80 000
,
mode 2-2 y =
A + By MACRS Method
Time Cost BVz =

3y = 900 008 , Tode =% dm-nd

1

X Y D3 =
FC By -

FC =
600 000 , %d =
5
=
0 02
90 %
.

8 1800000 Dy = 1 800, 000

,
-
900 , 000 SV =
60008
depreciation de =
* [1 -
0 2
.
=
0 32
.

5 300000 D3 =
900 000 ,
n =
5 % dy =
= [1-0 2 - 0 32 . .

% odz =
0 192
% dz 192(6000007
.

= 0 .
=
115 200
,

FC =
480000 X Y
SV =
48000234000hrs 0480, 000 Cost= Profit
36 00048 000
,
,
720, 000
250 000 + 0 7n .
= H
, 000
600
,

PVz =
156 000 ,
1 -
12008

27000 2 15000
-

n = 500 000
,

D2 =
480 000 ,
-

156 , 000 27000 hrs

D2 =
324 , 000

mode 2-3 y =
A+ By + C

X Y BVz =

3y =
600 000 ,

0 1 , 800, 000 FC-BV3

D3 =

5 300 000 600000

1800000
-

6300 , 000 D3 = 1 200 000 ,

,