Mechanical Engineering

Provision for inflationmay be made in two ways: (1) estimate all future costs and benefits…

The term discount rate is often used for the interest rate when comparing alternative projects or strategies.…

Most decisions are based on economic criteria. In-vestments are unattractive, unless it seems likely they…

Additional concepts involved in interest calculations include continuous cash flow, capitalized costs, begin-ning of period payments,…

As with the other factors,there is a corresponding inverse to the capital recovery factor. The series…

It is also important to be able torelate regular periodic payments to their present worth;…

The process corresponding to theinverse of series compounding is referred to as a sinking fund; that is, what…

Normally, but not always, the interest period is taken as 1 yr. There may be subperiods of…

Present worth is the value found by discounting fu-ture cash flows to the present or base time.…

Interest factors are multiplicative numbers calculated from interest formulas for given interest rates and peri-ods. They…