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  • Engr. Charity Hope Gayatin

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    medwin morales
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    1. The document calculates the present worth, future worth, and annual worth of alternatives A, B, C, and D using interest rates and cash flows over 10 years. 2. For each alternative, the calculations determine the net present value using the present worth method, the future value using the future worth method, and the equivalent uniform annual worth using the annual worth method. 3. The results show the estimated net present value, future value, and equivalent uniform annual worth for each of the 4 alternatives based on discounted cash flow analysis over 10 years.

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    M2-CPR-MORALES

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    1. The document calculates the present worth, future worth, and annual worth of alternatives A, B, C, and D using interest rates and cash flows over 10 years. 2. For each alternative, the calculations determine the net present value using the present worth method, the future value using the future worth method, and the equivalent uniform annual worth using the annual worth method. 3. The results show the estimated net present value, future value, and equivalent uniform annual worth for each of the 4 alternatives based on discounted cash flow analysis over 10 years.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    22 views3 pages

    Engr. Charity Hope Gayatin

    Uploaded by

    medwin morales
    1. The document calculates the present worth, future worth, and annual worth of alternatives A, B, C, and D using interest rates and cash flows over 10 years. 2. For each alternative, the calculations determine the net present value using the present worth method, the future value using the future worth method, and the equivalent uniform annual worth using the annual worth method. 3. The results show the estimated net present value, future value, and equivalent uniform annual worth for each of the 4 alternatives based on discounted cash flow analysis over 10 years.

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    © All Rights Reserved
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    of 3

    CE40-2/A2

    08/07/2022
    MORAELS, Medwin Miguel M.
    Student Number CE/3
    2017130414
    M2-CPR-10%
    Class Produced Reviewer

    Present Worth Method


    1. Present Worth Method for A
    𝑃 𝑃
    𝑃𝑊 (𝐴) = −150,000 + (28000 − 1000) ( , 12%, 10) + (20000) ( , 12%, 10)
    𝐴 𝐹
    [(1 + 0.12)10 − 1]
    𝑃𝑊(𝐴) = −150000 + (27000)𝑋 + 20000(1 + 0.12)−10
    0.12(1 + 0.12)10
    𝑃𝑊(𝐴) = 8995.49
    2. Present Worth Method for B
    𝑃 𝑃
    𝑃𝑊 (𝐵) = 85000 + (16000 − 550) ( , 12%, 10) + (10000) ( , 12%, 10)
    𝐴 𝐹
    [(1 + 0.12)10 − 1]
    𝑃𝑊(𝐵) = −85000 + (15450)𝑋 + (10000)(1 + 0.12)−10
    0.12(1 + 0.12)10
    𝑃𝑊(𝐴) = 5,515.68
    3. Present Worth Method for C
    𝑃 𝑃
    𝑃𝑊 (𝐶) = −75000 + (15000 − 500) ( , 12%, 10) + (6000) ( , 12%, 10)
    𝐴 𝐹
    [(1 + 0.12)10 − 1]
    𝑃𝑊(𝐶) = −75000 + (14500)𝑋 + (6000)(1 + 0.12)−10
    0.12(1 + 0.12)10
    𝑃𝑊(𝐴) = 8860.07
    4. Present Worth Method for D
    𝑃 𝑃
    𝑃𝑊 (𝐷) = −120000 + (22000 − 700) ( , 12%, 10) + (11000) ( , 12%, 10)
    𝐴 𝐹
    [(1 + 0.12)10 − 1]
    𝑃𝑊(𝐷) = −120000 + (21300)𝑋 + (11000)(1 + 0.12)−10
    0.12(1 + 0.12)10
    𝑃𝑊(𝐴) = 3891.46

    ENGR. CHARITY HOPE GAYATIN


    Future Worth Method
    1. Future Worth Method for A
    𝐹 𝐹
    𝐹𝑊 (𝐴) = −150,000 + ( , 12%, 10) + (28000 − 1000) ( , 12%, 10) + (20000)
    𝑝 𝐴
    (1 10
    + 0.12) −1
    𝐹𝑊(𝐴) = −150000(1 + 0.12)10 + (27000)𝑋 [ ] + 20000
    0.12
    𝐹𝑊(𝐴) = 279386.62
    2. Futuret Worth Method for B
    𝐹 𝑃
    𝐹𝑊 (𝐵) = −85000 + ( , 12%, 10) + (16000 − 550) ( , 12%, 10) + (10000)
    𝑝 𝐹
    (1 10
    + 0.12) −1
    𝐹𝑊(𝐵) = −85000(1 + 0.12)10 + (15450)𝑋 [ ] + 10000
    0.12
    𝐹𝑊(𝐵) = 17130.86

    3. Future Worth Method for C


    𝐹 𝐹
    𝐹𝑊 (𝐶) = −75000 + ( , 12%, 10) + (15000 − 500) ( , 12%, 10) + (6000)
    𝑝 𝐴
    (1 10
    10
    + 0.12) −1
    𝐹𝑊(𝐶) = −75000(1 + 0.12) + (14500)𝑋 [ ] + 6000
    0.12
    𝐹𝑊(𝐶) = 27518.04

    4. Future Worth Method for D


    𝐹 𝐹
    𝐹𝑊 (𝐷) = −120000 + ( , 12%, 10) + (22000 − 700) ( , 12%, 10) + (11000)
    𝑝 𝐴
    (1 + 0.12)10 − 1
    𝐹𝑊(𝐷) = −120000(1 + 0.12)10 + (21300)𝑋 [ ] + 11000
    0.12
    𝐹𝑊(𝐷) = 12086.27

    Annual Worth Method


    1. Annual Method for A
    𝐴 𝐴
    𝐴𝑊 (𝐴) = −150,000 + ( , 12%, 10) + (28000 − 1000) + (20,000) ( , 12%, 10)
    𝑃 𝐹
    0.12(1 + 0.12)10 0.12
    𝐴𝑊(𝐴) = −150000 [ 10
    ] + (27000) + (20000)𝑋 [ ]
    (1 + 0.12) − 1 (1 + 0.12)10 − 1
    𝐹𝑊(𝐴) = 1592.06
    2. Annual Worth Method for B
    𝐴 𝐴
    𝐹𝑊 (𝐴) = −85000 + ( , 12%, 10) + (16000 − 550) + (10,000) ( , 12%, 10)
    𝑃 𝐹
    0.12(1 + 0.12)10 0.12
    𝐴𝑊(𝐴) = −85000 [ 10
    ] + (15450) + (10000)𝑋 [ ]
    (1 + 0.12) − 1 (1 + 0.12)10 − 1
    𝐹𝑊(𝐵) = 976.19

    ENGR. CHARITY HOPE GAYATIN


    3. Future Worth Method for C
    𝐴 𝐴
    𝐴𝑊 (𝐶) = −75000 + ( , 12%, 10) + (15000 − 500) + (6000) ( , 12%, 10)
    𝑃 𝐹
    0.12(1 + 0.12)10 0.12
    𝐴𝑊(𝐶) = −150000 [ 10
    ] + (14500) + (6000)𝑋 [ ]
    (1 + 0.12) − 1 (1 + 0.12)10 − 1
    𝐹𝑊(𝐶) = 1568.09

    4. Future Worth Method for D


    𝐴 𝐴
    𝐴𝑊 (𝐷) = −120000 + ( , 12%, 10) + (22000 − 700) + (11000) ( , 12%, 10)
    𝑃 𝐹
    0.12(1 + 0.12)10 0.12
    𝐴𝑊(𝐷) = −120000 [ 10
    ] + (212300) + (20000)𝑋 [ ]
    (1 + 0.12) − 1 (1 + 0.12)10 − 1
    𝐹𝑊(𝐷) = 688.73

    ENGR. CHARITY HOPE GAYATIN

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