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Chapter 5
Evaluating a Single Project
VN =?
FW = -$45,000(1.7623)+$14,000(6.3528)+$4,000
Ex. 5.7 - In Example 5-2, the $110,000 retrofitted space-heating system was
projected to save $30,000 per year in electrical power and be worth $8,000 at
the end of the six-year study period. Use the FW method to determine whether
the project is still economically justified if the system has zero market value
after six years. The MARR is 15% per year.
Khi nằm bên vế thu / chi (in/out) thì đều là positive hết
Tìm i ‘ bằng cách thay I cho sẵn thay cho đến khi nào
PW âm .
where
Rk = excess of receipts over expenses
in period k,
Ek = excess of expenses over receipts
in period k,
N = project life or number of periods,
ε = external reinvestment rate per
period.
Expenses
Revenue
Solving, we find
and discounted
payback. 3 $10,000 -$9,000 -$12,493
From the calculations
θ = 4 years and θ' = 5 4 $10,000 $1,000 -$4,572
years.
Pro.: 5.3, 5.11, 5.16, 5.18, 5.19,
5.22, 5.23, 5.34, 5.38, 5.47, 5.51,
5 $9,000 $2,153
5.53 & 5.60
Copyright ©2009 by Pearson Education, Inc.
Engineering Economy, Fourteenth Edition
Upper Saddle River, New Jersey 07458
By William G. Sullivan, Elin M. Wicks, and C. Patrick Koelling
All rights reserved.
Practice
A new automotive “dry paint” separation
process is environmentally friendly and is
expected to save $8.00 per car painted at a
Detroit plant. The installed cost of the process
is $8 million, and 250,000 cars are painted
each year. What is the simple payback for the
new technology?