Figure 5 1 Determination of the MARR Based

Figure 5 -1 Determination of the MARR Based on the Opportunity Cost Viewpoint (A popular measure of annual rate of profit is “Internal Rate of Return, ” discussed later in this chapter. ) Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

Figure 5 -2 PW of $1, 000 Received at the End of Year k at an Interest Rate of i% per Year Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

TABLE 5 -1 Calculation of Equivalent Annual CR Amount Engineering Economy, Sixteenth Edition Sullivan

Figure 5 -3 Plot of PW versus Interest Rate Engineering Economy, Sixteenth Edition Sullivan

Figure 5 -4 Investment-Balance Diagram Showing IRR Engineering Economy, Sixteenth Edition Sullivan | Wicks

Figure 5 -5 Use of Linear Interpolation to Find the Approximation of IRR for Example 5 -12 Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

Figure 5 -6 Spreadsheet Solution, Example 5 -12 Engineering Economy, Sixteenth Edition Sullivan |

Figure 5 -7 Spreadsheet Solution, Example 5 -13 Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling (a) Direct Computation of IRR Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

Figure 5 -7 (continued) Spreadsheet Solution, Example 5 -13 Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling (b) Graphical Determination of IRR Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

Figure 5 -8 Investment-Balance Diagram for Example 5 -13 Engineering Economy, Sixteenth Edition Sullivan

TABLE 5 -2 Calculation of the Simple Payback Period (θ) and the Discounted Payback Period (θ') at MARR = 20% for Example 5 -13 a Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.

Figure 5 -9 Graph of Cumulative PW for Example 5 -13 Engineering Economy, Sixteenth

Figure 5 -10 Final Spreadsheet Model for Simple and Discounted Payback Period Methods Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright © 2015, 2012, 2009 by Pearson Education, Inc. All rights reserved.