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R13

UNIT III CASH FLOW 9


Methods of comparison of alternatives present worth method (Revenue dominated cash
flow
diagram), Future worth method (Revenue dominated cash flow diagram, cost dominated cash
flow diagram), Annual equivalent method (Revenue dominated cash flow diagram, cost
dominated cash flow diagram), rate of return method, Examples in all the methods.

R8
UNIT III CASH FLOW 9
Methods of comparison of alternatives present worth method (Revenue dominated cash
flow diagram), Future worth method (Revenue dominated cash flow diagram, cost
dominated cash flow diagram), Annual equivalent method (Revenue dominated cash flow
diagram, cost dominated cash flow diagram), rate of return method, Examples in all the
methods.

Gradient method sums (Compare the sums in the pages 3.12, 3.38 & 3.48) doubts
Methods of comparison of alternatives
1. present worth method 3.1
(Revenue dominated cash flow diagram), 3.2
Examples 3.4
2. Future worth method 3.23
(Revenue dominated cash flow diagram, 3.24
cost dominated cash flow diagram), 3.25
Examples 3.26
3. Annual equivalent method 3.42
(Revenue dominated cash flow diagram, 3.43
cost dominated cash flow diagram), 3.44
Alternative approach-Sinking fund 3.46
Examples -
4. rate of return method, 3.71
Examples in all the methods.

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