Engineering

Economics
Instructor: Dr. Liaquat Ali Khan

Department of Mechanical Engineering, NUST Fall -2019 1

Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 2
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 3
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 4
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 5
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 6
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 7
Dr. Liaquat Ali Khan
 F/P and P/F Factors: Notation and
Equations

Department of Mechanical Engineering, NUST Fall -2019 8

Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 9
Dr. Liaquat Ali Khan
 P/A and A/P Factors: Notation and
Equations

Department of Mechanical Engineering, NUST Fall -2019 10

Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 11
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 12
Dr. Liaquat Ali Khan
 F/A and A/F Factors: Notation and
Equations

Department of Mechanical Engineering, NUST Fall -2019 13

Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 14
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 15
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 16
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 17
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 18
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 19
Dr. Liaquat Ali Khan
 Converting Arithmetic Gradient
to A

Department of Mechanical Engineering, NUST Fall -2019 20

Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 21
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 22
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 23
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 24
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 25
Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 26
Dr. Liaquat Ali Khan
 Excel Functions

Department of Mechanical Engineering, NUST Fall -2019 27

Dr. Liaquat Ali Khan
 Excel Functions
➢ There is no direct, single-cell spreadsheet function to calculate PG or
AG for an arithmetic gradient.
➢ Use the NPV function to display PG and the PMT function to display
AG after entering all cash flows (base and gradient amounts) into
contiguous cells

➢ To use IRR to find i, enter all cash flows into contiguous cells,
including zero values
➢ The single-cell RATE function finds i when an A series and single
P and/or F values are involved

Department of Mechanical Engineering, NUST Fall -2019 28

Dr. Liaquat Ali Khan
Department of Mechanical Engineering, NUST Fall -2019 29
Dr. Liaquat Ali Khan