Homework Answers
Equivalent annual worth = Net present worth × Capital Recovery factor
At first, the net present worth of the cash flows should be determined. The NPW is calculated as follows : -
NPW = - $ 3000 (P/F , 10% , 1 year) + $ 3000 ( P/A , 10% , 4 years) × (P/F , 10% , 2 years) + $ 1000 ( P/G , 10% , 4 years) × (P/F , 10% , 2 years)
NPW = - $ 3000 × 0.9091 + $ 3000 × 3.1699 × 0.8264 + $ 1000 × 4.3781 × 0.8264
NPW = $ 8749.57792
Equivalent annual worth = NPW × ( A/P , 10% , 6 years)
Equivalent annual worth = $ 8749.57792 × 0.2296
Equivalent annual worth = $ 2009
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Consider the accompanying cash flow diagram. Compute the equivalent annual worth at i= 10 % 6....
Consider the cash flow diagram and i = 10%. What is the equivalent annual value? &nbs
Consider the cash flow diagram and i = 10%. What is the
equivalent annual value?
Equal Payment Series Gradient Series Single Payment Compound Present Amount Worth Factor Factor (F/P.IN) (P/EN) Compound Amount Factor (F/A,IN) Sinking Fund Factor (A/EN) Present Worth Factor (P/A.IN) Capital Recovery Factor (A/P.AN) Gradient Uniform Series (A/GIN) Gradient Present Worth (P/G/N) N N 1.1000 1.2100 1.3310 1.4641 1.6105 0.9091 0.8264 0.7513 0.6830 0.6209 1.0000 2.1000 3.3100 4.6410 6.1051 1.0000 0.4762 0.3021 0.2155 0.1638 0.9091...
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Equal Payment Series Gradient Series Single Payment Compound Present Amount Worth Factor Factor (F/P.IN) (P/EN) Compound Amount Factor (F/A,IN) Sinking Fund Factor (A/EN) Present Worth Factor (P/A.IN) Capital Recovery Factor (A/P.AN) Gradient Uniform Series (A/GIN) Gradient Present Worth (P/G/N) N N 1.1000 1.2100 1.3310 1.4641 1.6105 0.9091 0.8264 0.7513 0.6830 0.6209 1.0000 2.1000 3.3100 4.6410 6.1051 1.0000 0.4762 0.3021 0.2155 0.1638 0.9091...
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