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Engineering Economy Formulas, Study notes of Engineering Economy

University of San Carlos (USC)Engineering Economy

Important engineering economy formulas

Typology: Study notes

2019/2020

On special offer

~~30 Points~~

Limited-time offer

Uploaded on 03/28/2020

stevendelaserna 🇵🇭

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Interest

 Simple Interest

FV = P (1+iN)

I = PiN

 Compound Interest

CI = [P(1+i)n]-P

FV = P (1+r/n)nt

Cash Flow

• Single Payment

 Uniform series cash flow (present

worth)

• Uniform series cash flow (future

worth)

• Gradient series cash flow

Arithmetic gradient

– Conventional gradient

-

Effective Interest Rate

 Continuous

Annuity

 Ordinary Annuity

 Deferred Annuity

(1 )n

FV PV i

1

(1 )n

PV FV i









(1 ) 1

(1 )

n

i

PV A ii











(1 ) 1

n

i

FV A i









(1 ) 1 (1 ) 1

(1 ) (1 ) (1 )

nn

n n n

i G i n

PV A i i i i i i

   

   

  

   

  

   

(1 ) 1 (1 ) 1

(1 ) (1 ) (1 )

nn

n n n

i G i n

PV A i i i i i i

   

   

  

   

  

   

1

11

n

g

i

PV A ig

gi





























1

(1 ) 1

n

AG

ii











(1 ) 1

m

r

im

  

1

r

ie

ln(1 )ri

(1 ) 1

n

i

FA i









(1 ) 1

(1 )

n

i

PAii











( , ) 1 (1 ) (1 )

nk

i

P A i

i













On special offer

Partial preview of the text

Download Engineering Economy Formulas and more Study notes Engineering Economy in PDF only on Docsity!

Interest

 Simple Interest

FV = P (1+iN)

I = PiN

 Compound Interest

CI = [P(1+i)n]-P

FV = P (1+r/n)nt

Cash Flow

Single Payment

 Uniform series cash flow (present worth)

Uniform series cash flow (future worth)
Gradient series cash flow

Arithmetic gradient

Conventional gradient

Effective Interest Rate

 Continuous

Annuity

 Ordinary Annuity

 Deferred Annuity

FV  PV (1  i ) n

1 (1 ) n

PV FV i

   (^)     

(1 ) 1

(1 )

n

i PV A i i

     (^)     

n i FV A i

n n

n n n

i G i n PV A i i i i i i

 ^   ^  

(1 ) 1 (1 ) 1

(1 ) (1 ) (1 )

n n

n n n

i G i n PV A i i i i i i

 (^)     (^)     (^)    (^)   

 ^   ^  

1

1 1 1

n g i PV A i g

g i

 (^)          ^      (^)       

n

A G

i i

 ^  

(1 ) 1

r m i m

  

1

r i  e 

r  ln(1  i )

(1 ) 1

n i F A i

 (^)     (^)  

 

n

i P A i i

( , )

n k n k

i

P A i

i



 Annuity Due

 Perpetuity

 Capitalized cost

Depreciation

 The Straight Line Formula

 The Sinking Fund Formula

 Matheson Method

 The Sum of the Years-Digits (SYD) Method

ROR

Rate of Return = Annual net profit

Amount of capital invested

( , )

1 (1 ) (1 )

n

n due

i P A i i

      (^)     

( , )

(1 ) 1 (1 )

n

n due

i F A i i

     (^)     

A P i



Cos 1 (1 ) k

S CapitalizedCost First t i 

   

Co Cn d n

Cm  Co  Dm

1 ( ) (1 ) 1

d Co Cn (^) n i

i

      (^)    ^    

(1 ) 1

( ) (1 ) 1

m

m o n (^) n

i

i D C C i

i

 (^)           (^)       

m o m

C  C  D

0 0

m n m n

c c k c c

0

m m

c  c  k

0

n n

c  c  k

m m 1

D kc



m o n

n m d C C n n

m (^ o n )

m D md C C n

  

Engineering Economy Formulas, Study notes of Engineering Economy

Related documents

Partial preview of the text

Download Engineering Economy Formulas and more Study notes Engineering Economy in PDF only on Docsity!

Conventional gradient

 ^   ^  

n

A G

i i

 ^  

i

P A i

i

C  C  D

c  c  k

c  c  k

D kc