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Discount Rate
The term discount rate is often used for the interest rate when comparing alternative projects or strategies.…
Posted inEngineering Economics
Comparison of Alternatives
Most decisions are based on economic criteria. In-vestments are unattractive, unless it seems likely they…
Posted inEngineering Economics
Other Interest Calculation Concepts
Additional concepts involved in interest calculations include continuous cash flow, capitalized costs, begin-ning of period payments,…
Posted inEngineering Economics
Series present worth factor
As with the other factors,there is a corresponding inverse to the capital recovery factor. The series…
Posted inEngineering Economics
Capital recovery factor
It is also important to be able torelate regular periodic payments to their present worth;…
Posted inEngineering Economics
Sinking fund factor
The process corresponding to theinverse of series compounding is referred to as a sinking fund; that is, what…
Posted inEngineering Economics
Interest Periods
Normally, but not always, the interest period is taken as 1 yr. There may be subperiods of…
Posted inEngineering Economics
Present Worth
Present worth is the value found by discounting fu-ture cash flows to the present or base time.…
Posted inEngineering Economics
Interest Factors
Interest factors are multiplicative numbers calculated from interest formulas for given interest rates and peri-ods. They…
Posted inEngineering Economics
Interest Calculations
Interest is the money paid for the use of borrowed money or the return on…