EXAMPLE 5 1 Using PW Evaluation of New

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EXAMPLE 5 -1 Using PW Evaluation of New Equipment Purchase continued on next slide

EXAMPLE 5 -1 Using PW Evaluation of New Equipment Purchase continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -1 (continued) Evaluation of New Equipment Purchase Using PW Engineering Economy, Sixteenth

EXAMPLE 5 -1 (continued) Evaluation of New Equipment Purchase Using PW Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -2 System Present Worth of a Space-Heating Engineering Economy, Sixteenth Edition Sullivan

EXAMPLE 5 -2 System Present Worth of a Space-Heating Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -3 Bond Stan Moneymaker Wants to Buy a Engineering Economy, Sixteenth Edition

EXAMPLE 5 -3 Bond Stan Moneymaker Wants to Buy a Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -4 Calculations Current Price and Annual Yield of Bond Engineering Economy, Sixteenth

EXAMPLE 5 -4 Calculations Current Price and Annual Yield of Bond Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -5 Bridge Determining the Capitalized Worth of a Engineering Economy, Sixteenth Edition

EXAMPLE 5 -5 Bridge Determining the Capitalized Worth of a Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -6 The Relationship between FW and PW Engineering Economy, Sixteenth Edition Sullivan

EXAMPLE 5 -6 The Relationship between FW and PW Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -7 Sensitivity Analysis Using FW (Example 5 -2 Revisited) Engineering Economy, Sixteenth

EXAMPLE 5 -7 Sensitivity Analysis Using FW (Example 5 -2 Revisited) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -8 Using AW to Evaluate the Purchase of New Equipment (Example 5

EXAMPLE 5 -8 Using AW to Evaluate the Purchase of New Equipment (Example 5 -1 Revisited) continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -8 (continued) Using AW to Evaluate the Purchase of New Equipment (Example

EXAMPLE 5 -8 (continued) Using AW to Evaluate the Purchase of New Equipment (Example 5 -1 Revisited) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -9 Corporate Jet Equivalent Uniform Annual Cost of a Engineering Economy, Sixteenth

EXAMPLE 5 -9 Corporate Jet Equivalent Uniform Annual Cost of a Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -10 Determination of Annual Savings by Using the AW Method (Example 5

EXAMPLE 5 -10 Determination of Annual Savings by Using the AW Method (Example 5 -2 Revisited) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -11 Lease Avoid Getting Fleeced on an Auto continued on next slide

EXAMPLE 5 -11 Lease Avoid Getting Fleeced on an Auto continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -11 (continued) on an Auto Lease Engineering Economy, Sixteenth Edition Sullivan |

EXAMPLE 5 -11 (continued) on an Auto Lease Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Avoid Getting Fleeced Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -12 Economic Desirability of a Project Using the IRR Method continued on

EXAMPLE 5 -12 Economic Desirability of a Project Using the IRR Method continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -12 (continued) Economic Desirability of a Project Using the IRR Method continued

EXAMPLE 5 -12 (continued) Economic Desirability of a Project Using the IRR Method continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -12 (continued) Economic Desirability of a Project Using the IRR Method Engineering

EXAMPLE 5 -12 (continued) Economic Desirability of a Project Using the IRR Method Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -13 Evaluation of New Equipment Purchase, Using the Internal Rate of Return

EXAMPLE 5 -13 Evaluation of New Equipment Purchase, Using the Internal Rate of Return Method (Example 5 -1 Revisited) continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -13 (continued) Evaluation of New Equipment Purchase, Using the Internal Rate of

EXAMPLE 5 -13 (continued) Evaluation of New Equipment Purchase, Using the Internal Rate of Return Method (Example 5 -1 Revisited) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -14 Do You Know What Your Effective Interest Rate Is? continued on

EXAMPLE 5 -14 Do You Know What Your Effective Interest Rate Is? continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -14 (continued) Do You Know What Your Effective Interest Rate Is? continued

EXAMPLE 5 -14 (continued) Do You Know What Your Effective Interest Rate Is? continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -14 (continued) Do You Know What Your Effective Interest Rate Is? Engineering

EXAMPLE 5 -14 (continued) Do You Know What Your Effective Interest Rate Is? Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -15 Financing! Be Careful with “Fly-by-Night” continued on next slide Engineering Economy,

EXAMPLE 5 -15 Financing! Be Careful with “Fly-by-Night” continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -15 (continued) -Night” Financing! Be Careful with “Fly-by continued on next slide

EXAMPLE 5 -15 (continued) -Night” Financing! Be Careful with “Fly-by continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -15 (continued) -Night” Financing! Engineering Economy, Sixteenth Edition Sullivan | Wicks |

EXAMPLE 5 -15 (continued) -Night” Financing! Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Be Careful with “Fly-by Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -16 Effective Interest Rate for Purchase of New Aircraft Equipment continued on

EXAMPLE 5 -16 Effective Interest Rate for Purchase of New Aircraft Equipment continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -16 (continued) Effective Interest Rate for Purchase of New Aircraft Equipment Engineering

EXAMPLE 5 -16 (continued) Effective Interest Rate for Purchase of New Aircraft Equipment Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -17 Calculation of the ERR Engineering Economy, Sixteenth Edition Sullivan | Wicks

EXAMPLE 5 -17 Calculation of the ERR Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -18 Determining the Acceptability of a Project, Using ERR Engineering Economy, Sixteenth

EXAMPLE 5 -18 Determining the Acceptability of a Project, Using ERR Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -19 Period Determining the Simple Payback Engineering Economy, Sixteenth Edition Sullivan |

EXAMPLE 5 -19 Period Determining the Simple Payback Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -A-1 continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks

EXAMPLE 5 -A-1 continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -A-1 (continued) continued on next slide Engineering Economy, Sixteenth Edition Sullivan |

EXAMPLE 5 -A-1 (continued) continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -A-1 (continued) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright

EXAMPLE 5 -A-1 (continued) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -A-2 continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks

EXAMPLE 5 -A-2 continued on next slide Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

EXAMPLE 5 -A-2 (continued) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright

EXAMPLE 5 -A-2 (continued) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.