Ekonomi teknik, halaman 142, bab 4

Example 4.9
The Scott and White Health Plan (SWHP) has purchased a robotized prescription
full-filment system for testeir and more accurate delivery to patients with stable,
pill-form medication for chronic health problems, such us diabetes, thyroid, and
high blood pleasure. Assume this high volume system costs $3 million to install
and en estimated $200,000 per year for all materials, operating, personnel, and
maintenance costs. The expected life is 10 years. An SWHP biomedical engineer
wants to estimate the total revenue requirement for each 6 month period that is
necessary to recover the investment interest and annual cost. Find this
semiannual A value both by hand and by computer, if capital funds are evaluated
at 8% per year using two different compounding periods:
1. 8% per year compounded semiannual.
2. 8% per year compounded monthly.
Solution:
Figure 4-8 shows the cash flow diagram. Throughout the 20 semiannual periods,
the annual cost occurs every other period, and the capital recovery series is
sought for every 6-month period. This pattern makes the solution by hand quite
involved if the P/F factor, not the P/A factor, is used to find P for the 10 annual
$200,000 costs. The computer solution is recommended in cases such as this.
Solution by hand-rate 1:
Steps to find the semiannual A value are summarized below:
PP = CP at 6-months; finds the effective rate per semiannual period.
Effective semiannual i = 8%/2 = 4 % per 6-months, compounded semiannually.
Number of semiannual periods n = 2(10) = 20.
Calculate P, using P/F factor for n = 2, 4, , 20 periods since the costs are annual,
not semiannual. Then use the A/P factor over 20 periods to find the semiannual A.

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Conclusion: Revenue of $318,778 is necessary every 6 months to cover all costs

and interest at 8% per year, compounded semiannually.
Solution by hand-rate 2: the PP is semiannual, but the CP is now monthly;
therefore, PP > CP. To find the effective semiannual rate, the effectife interest
rate, Equation [4.8], is applied with r = 4% snd m = 6 months per semiannual
period.
Effective semiannual

)
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Figure 4-8
Cash flow
diagram with
two different
compounding
periods,
Example 4.9

$200,000 per year

i1 = 8%, compounded semiannually.
i2 = 8%, compounded monthly.
P = $3 million

Now, $320,064 or $1286 more semiannually, is requirement to cover the more

frequent compounding of the 8% per year interest. Note that all P/F and A/P
factors must be calculated with factor formulas at 4.067%. This method is usually
more calculation-intensive and error-prone than with a spreadsheet solution.
Solution by computer rates 1 and 2: Figure 4 9 presents a general solution for
the problem at both rates. (Several rows at the bottom of the spreadsheet are not
printed. They continue the cash flow pattern of $200,000 every other 6 month
through cell B32). The function in C8 and E8 are general expressions for the
effective rate per PP, expressed in months. This allows some sensitivity analysis to
be performed for different PP and CP value. Note the function in C7 and E7 to
determine m for the effective rate relations. This technique works well for
spreadsheet once PP and CP are entered in the time unit of the CP.
Each 6-month period is included in the cash flows, including the $0 entries, so the
NPV and PMT functions work correctly. The final A value in D14 ($318,784) and
F14(320,069) are the same (except for rounding) as those above:

=A32
=E5/E6
=+((1+((E2/(12/E5))/E7))^E7)-1
=NPV(E8,B13:B32)+B12

=PMT(E8,E4,-F12

So for the analysis we can see For semiannual value of PP same with CP
but in monthly the PP> CP the semiannual and the monthly have same number of
periode is 20 the different is a calculate effective semiannual i at semiannual the
value of i =4 % and for monthly i= 4,067 %.after that the cost semiannual A the
for P= $4.332.400 and the number of A = $ 318.778 but in other situation in
monthly the value for P = $ 4.324.080 and value for A = $ 320.064 . so we can
know that semiannual and monthly just have a litle different for 2 compouding
period