
By Abol Ardalan
This publication shouldn't be suggested for engineering and undertaking administration. Its identify is misleading.
Its contents are method too basic to be thought of while a textual content publication for faculty. I paintings at a financial institution and that i notion i used to be purchasing a ebook that will aid me increase my talents as a undertaking analyst... i believe deceived.
Another thing... its fee is simply too excessive relating to its caliber (contents, layout and fabrics used)
Read Online or Download Economic & financial analysis for engineering & project management PDF
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Sample text
The reason is that the interest rate and period of payment go together. The calculation of 30- Page 49 year monthly payments involves 360 periods. Our annual interest rate is 10%. We have to deduce the monthly rate from the yearly rate, as we did in Chapter 1, and apply it with n=360. 2b, where G is the gradient. 3. 4 An employee with an annual pay of $30,000 is told he is going to get an annual pay increase of $1,200 each year. The increase starts in the second year of his employment. What is the EUAW of his increase for the first five years at an assumed interest rate of 7%?
The use of spreadsheet will give us the same result. 2 A $120,000 house is bought by making a $20,000 down payment and obtaining a loan from the local bank at an interest of 10% for 30 years. What is the annual payment? 1b to solve this problem. 1b Using the compound interest rate tables The spreadsheet solution is Important Point Can we divide this number by 12 and obtain the monthly payment? The answer is NO. The reason is that the interest rate and period of payment go together. The calculation of 30- Page 49 year monthly payments involves 360 periods.
2c The $24,000 cost occurs at time zero, so its present value is $24,000. Now, we have to obtain the NPW of the other elements of the cash flow. Step 2: The $4600 benefit is received for three years (n=3). 3a to calculate the equivalent value of the total of these three payments referred to at time zero. Fig. 3b. From the compound interest tables, the page for i=10%, row n=3 and column for P/A, we obtain This is the same value calculated before. The small difference is due to rounding of the numbers.