Engineering Economy Notes

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\ ENGINEERING ECONDDTY) — cobscrive00 yputloe Rf = Genginerdmath E INTEREST ~ only Me principal earns interest T= Pn whee: I= we vate of terest par wterest period Fe ey + l= yer \wittres periv n= wanber of wboest period F = Pt Par P- principal or ppesent yor th Fe Podni) F= gccurnulated amount o¢ fuhwe worth rdinary simpe interest \s oonpater onthe basis of 12 months of 8 a np 8 mi yar of 86d days a yen eenack-digre miteresh js based on the exact num bor of das in por , 315 days fir an ordirany) yeor ard Sib days 4 4 keap your Februnpy - ae/aq days J anuory hel To find uelhor a. yor is Mandy Jute wdinary yeast of leap yeaur, September Hit is divsbe, ty 4 Hen Sul uy ‘November’ iris a keap pur joher wise Augast pedinany “Year, Debdber Devemberr a Subserilbe on youtube Pb Genginerdmath What (s the exact simple interest. of PreDd for Hie perivd om January to ty Dobloer 29,1940 at IG % rate of interest, - Solution Gen ty = from Tanuawy (> t Dobbel 2¢ lA = 6% P= Pig Cheda iF (460 js aleay year sxdivary yeost te = 445 ~. Leap year San yay 1D —s 94 Felbvuay — 29 Mato, — 3 Fe PCt+ w) 942 al — 30 =F rovo (| 4 63) May S Fe Peaao June — 30 July — $1 August —" #4 Septembot —* 26 Debber ag 7 24 a4, days z subsoribe0n youtuloe, 2 fs @engynerdmatn ~ 0. geogrcal repesentation Of cash Flows dvawn ona ime Scale cx A loa of add at a simpe interest of 85% will Veome ‘PAD after © years. . PAD F200 J -rdiswisement Cregacive codn Fad of cad oats) T > veceipt positive cash Pow wf Cah inflow) ~ both principal and wnberest cay metect “interest on a of interest” Fe pato™ + Pariy™” 4 L prinapal at the interest, varied beshnning of peri n durwg period N = Ptey Cit) — Frrgont O40)" ~|b2 p ti)” — amount at the end of period 0 (141) —" single pagent tompsund amount featse C/o , 7 a) -|Fe PCT/, Vn) Mt guid atl'8G W mberest period : Subsoribe, 09 yputuloe, Bf Msp @engnerdmnath P= Flr uy >privcipal/ present yarth amount, of money (40) “aries gent presatbaaattiehin” CZF ib, 0) = i P= FC fe Vn) * given F at ("bm n mbevest period ” a) Nominal rahe of mtenest ~ specifies vate of inberest ard a namber of vaberest periods in whe, year ra ‘| erate of interest per wnbevest. period m (= pormmal vate of tnborest m= warner of voimpn wnding yeriods eo . > P+ | mote: annual > me41 3. feu F mv) semiannual — mse bh PeFurey™ | garely ms bimonthly — m= 6 Yaly > m= 19) ‘i ne aly m ~ achua) interest cate of an investment tn one gear or the terest, Yate, fir any, compounding that wil give the same Ocoumnulation as computed wmpranded ownually . As a consequence, Subsotilbe on yortubie, Re EL= (1 FLA oe @enginerdmath EL= (ttm) —1 ) Wot is the equivdlent rominal teres, vate ompurder| quarterly of 12% tompourded seanroinn tally ” Sao ey: _Compraiy quadey | y=? r= 2% m= 4 me 2 Equabng ettective, vote of interest: | | 4 2 10. EL cm) 1 > (14 @)-t= tA Sehing fev: C= 0, 14a or I 825% 1) Find the amount at He wend of Ano Yeats and seven months if Poo is imested at wompourded quately Using sample terest, ty any time less than a year with intaeck period a (0 “o 7 Subsoribe on youtube, Af Solution: @enginerdmath Grven. P= #1000 N= 7 months Chess than a you) n= 2 years oe years r= 3% v2 10% m= 4 (compounded quaverly) For the Fest, ro yeats: e mo p09 (4)L2) Fy,= PU+ m) = Piooo (it a) = PINAL Gb Fae POt ni)=Piaali4 HO] | Fy = |Pig4o ~it is the equation Reted iv) seting one set of Biigation equal to onattier set of Ushigation brougal +> ony pant na cay Flow) diogra Known a Ye freal date, oF tanpaytson dave. ov refers pont i) Aman bought a lob worth 1, 000,000 if pad in ash} On the, installment, Vast jhe paid 0 coumpayeat ot #200,m0 ; F300 , 000 at the er of ate yen ,-P.400,000 “at the wel oF He yeors atl 4 Fal payment cl the end of ve years. Wha, yng the Ana) paymnen interest was 40% - 3 Subscribe, on youtuloe, hfe *Papon,ooe Genjnerdmatn Solution: *P.200,000 | | P'300,000 P00,00(07 258) F 400, 90D PAR, 0d (Pr )20%3) x Ue 2%) ScHting focal date te 0; Sy cad flow = Z cadn outPlow - P l,000,000 = Fa00,c0 + Paxn,o00 C+ 0-8) 4 Papen (¥+03) + x (403) Solving fw x: X= P 792.576 ~in negpbiable pes, ik is the difference behween) the Future, worth and We present worth, ~inberest paid in advanve: ulere. D = disaunt DFP , 5 d= dis@unt vote per pevind g- D2 F] Go] f- 4).[e 2 qe EP. i Ft i-d P - g Subsorilve, 09 yautulbe, Fe Dexivation: @enginerdinath The vate of dicount is te discount on one unit of principal fi one unit of time. a ato ._§_§_ l Tata made « loa) fram his employer an anount of joo 20d with 9 vate of simple viterest of ado out the wnberest und deduced from the loan when He money way owowed Tt at Ye end of vite veo, Tato tas to joy the Full omount, of F (00,000, determme the actual vate sf nberesb. Solutiow: / Erion d= 40% , Fe Pio,om , b= % Ldution : ts dd . 0D Lomo ay |- 1-0. Solution & D= Fad = ? l,000 (0.80) = -P 20,00 P= F-D = PF ivdjo0o -Pa0,v0d = Pa, 000 (2 2. Bar _ paswlas% = B= “Bep,o09 7 28S 8 9 Subsarive on youtube, 9.0 ANNUITIES @enginerdmath -a sones of equal payments ocwing at equal periods of Hime. Tp ity ) payments ave made at the end of each period. bhi asa OS wd ns nam ny ALAA A RARRAAR To Find F, use 1 as the, fical date: Fe A+ AGHO'E ACU 1 AUHOH it ACHD + AHO SALIt CHO + CHT + UH)? tint AF" 4 OHO This is geometric Series: Ses aonef gamete eres Se = af 1] Gs first tenn T= common ration SQ 4, T= CVE) = ye rumour of terms, Se = oe [tu — 1 +i)"-4 hs serce, 7 , FehSe 24 oes F= 4 ey a papers A Subsefilte, on) yartube fb To find P, we 0 as Frail date: @enginerdmata Pe ACU + ACSTHACL HPht ACH + ACHE shawl l rt atiy rab tt Cue QE] ste Se Ramula dove agamn, where: ae1 ee Oty) jaan So-(n] wit] uty 2 P= Alitiy'Se (iy (ey “how Ga Multiply both by a P aww eee) mi os «RAT teeagng 8 ~L P= pee w|P- fe ta ae m \ \l Subson lbs On Youtube, A+ @engyoerdinath aati, In FS A — | > the Fador Gai) is called “unt hier \ LFA, Uh") — F given A at Un 1) interest peniods . a Fe KC Fav, 9) InP = (eee), the factor eatiy” is called the v mnt seviesnprecent uated”) (P74, 1°, %) read as P gren A ak i% ww aterest. goriods., “|/P= A CPs v%, 0) ve Ne, in A= Fla ety Ter te Fodor Ginny ne (M/F hn) read as A gen at i n woes, periods ~ |A= ECA, (In) and be PE = al the fador js called the, ut \-utiy / atone C Alp, Um) read ag Aeghien P ak ib m n interes, periods. Jy 2 POMP, {A n) |2 Relationship between capital vecoveny Fadbor ard srk func] Packor i‘ (iti! LF TCH) = 0 sobserite-on yaribe 2 tL = (I Hy | @enginerdmath — tut? at) uur att” L i tLe = (ns I= Gti)" *.| sinking fang Pace + ynberest rate = capital Ae ,ihn) ti = (Me, i%, 0) The purchase, amount of an equipment (00, 000 has bean made avaibble Hroupp 4 loan which ears beh por anim, L+ has een agreed tat He loan be paynblein 10 a) payments. fw much Hen Is the yey due? Solution Factor Cran: P= P1v0,00D j= 12%, =10 yas A=? J P= A I Uti? ] , - - \ Promo - 4 oe] ole Tokwng fy he A+ Pi4699. 42 is) subsofibe on) vyurtuloe, fo “Some Pele? @engyyerdmatn Wak je He ube, worth of Poo depostted ot the end of ey nest for yous 1F the yokerest vate Is 12% compounded quay tly’ Sdlubon Gwen: f= GoD ome potigy i ‘ “teed Henvert ty monty sme the payrient Vs Urey Monit ne bys m= ba Fee it Convert 12% compounded quawter\y h v's campourded monthly eu ny = eal. quovlerly 4 (Ga m 2 (ue BP) -\ Sokang BY: p= p.1Ig9 0% ompunded Now opt F 3 _ fe a yo m b. iss ee - Pool Ut 12) 0-Isd lo F = # 36, 41.32 IY Subserilbe on youtube, AP §) @enginerdinath ~ 18 Me type of anurty where the faymertts are deteried ht several periods of time, » ACP/s, \ hyn) APU", 0) (Pip i K-41) pr feo") P= P'UH) sphere R= delerwent period on ~ ce pea Tay Ee eet) U 5 Subsorioe, 00 youtube R96 @enginerdmath A man tans #1¢3,40D from o bank with interest: at &% camo onnyally - He ogress ty pay bis di gations vy paying © eal annual pares the First benny due at He nd of 10 yous: Find the annual payments Sdution: Brien: P= 163, MOD V= 8%, N=, Keo, A=? Pp i=5% Jypespeereges pz A pe) (+ i) » Pla, 40d = a| Lotro.) © ne oe 0.05 Sohng fy A A= P44 9.96 3) ~ the type of atwuttoy whee fre paynanis Ote made at Vegiry f edn period: \b pu Subsoribe, on yputuble hf p \"fo ‘a= @enginerdinath - TtHitl oe Tt 4] ARARRAARR A IA LE iti ii a! hk Chien)! 1 , mie geet Fi= 4 citi) 7h i) i L - Py, —uti) | F = Fi Crt) r AA l r ay ~ (rr) Fs Af Stole: . [ 1 Uti) | ) |p jy L = Al Giy™'- Ute i . ovnrl “| = eer \ | l Fes cri) -1| U A tran bought an equipment Costing F 69 ,o0d gayle n ia quarterly payrients bod Inckall men joule at Me Beginning ot each povibd The tale of mtered, 1s 94% compounded quarterly. Nhat is fhe amount, of Bodn qayment 7 IF Solution: Coven: P= Fo 00d yee oth mH ne la, 4=? x(am-1 ) ) Subset lbe, on) youtube, Afb . Ct ow r A $a Genginerdmath ™ - U4) F G,00 = ic ) | : 0.a4 7 Shang 4 he A= Peas oy 0 Paxpehity ~ the type of annuity similar to ordinary aratdy ercept that the payments wont nue, wnhinitely P u's P= af - aa n but sine, 1 approaches infinity, (ut) & 0 ae = De 1-d “pee P= A F cannot Ye debormined \$ subsorive-09 youtube, Bs @engnerdmnathr What amount of money tested today at 15°F heres, cay prove He, Tllowing Sdatatstigs = F 2,000 ot Hoe end of ead year fr f years: P Ad, 000 fe the next © yeors ond Pap, 000 Hereafter Soluon: ———__RSHPREAWDINGRAT L=16% pio b in bw P A,= P2000 A,=P4o,wo k= F.5d, D0 — ae0.te) 1- O40 o6) i P= Pa] ASO Poop (tots). + 09) P= 4) ) 262.82 \4 ih subsoribe on yputulie, Sf Ak AR By AL er @ a A Pa @engnerdinath Po Fe [P= Pat Po Paz Ay] OH) ral Pe - gt yecrry oO) aris + & Lica +i Jarty? ef al) ah F GLi- ari) Jariy wet) fatiy 4 ay mAb CUELD ]- G owiyuisi)” & , a =o c 1 “9 2S fariyt atiy dad asiy dt uD) Groh) l 9 = & [ey Farty + m4 ari) EWHY" \- a S amy” “4 & uw Pieris" wk CH Peary” “4 7 & num) re 7 doy geowetny sertes Rwnula, Se = ata 7 Whee a, = and r= (\riy! 20 Subpsotilve, 01 yputulte, Rb @engiwyordmnath Pee & 2 O41) [oo] -4 ; Syaniy” =peins rh he Rest cart bf the, right sde by a . F Crt lee 6. Pes Gany seh Bn" “e 2 [erraa) Encitiy” \-clti) i . = EVA] _ 6 aatis® if =t | cl mi 4 6 [4S an) + Byes? iF l U = e( ear - nei] i i PG [Son Ape") + oer —n)euts” U 4 L v To oct the equivalent arty By thas unite orth mec gradient payment, hy [asi] . Ae aro" | . te a)" fy UHL py Lui" Ly efy"t ~y Jovi” ici" TO+)* u Q\ te Ay = A + Sf" - 9 \oys ” : THT ofl Wwe om Subsorive, on yputulee, Bf : an Si qa Genginerdmath A, = Gf) we t= Ay i! wr | To fad F: Fa ~ eS U 5. & Cari’ “4 6 6 Lay tt GO) -1 2 tmnt? Peete tint (1H) - & cn-") L = BLOT Ca ad CHD HTD -e \ 7 on Usey Ser A oi where =|, r= Citi) . &fjyutD*!|_¢ pas | ops i” é \ L ey _& y-1 |! Fo: ef aryt -« | 22 Subsoribe, on youtube, Afb “|p A fo), ofa -a] L Benginerdmatn Fe Pa ~ Pe P- afer”) Gow assy” Fe Fy Fe i F« afro - ea -*| : — L ni Al interect Eod of year Pay ment \ PS 0d # 4,000 BP biD00 # o,000 ron Find the, equnalent anaval payment of the, fllowing digations at 0% 25 Subseries, on youtube, AAS Solution: _ Segnecieate Bivens A= Pao, 6= Plo; n= 4) U> ah , Sine this a descending payment, We st use, the, ‘eee oule,- Ay = Av Bl i- all . - fool ~ aia) _] I= Pao OL Toa Ay = G'ta9.7¢ Q> rate of tnaxcase, Using D as Foal date Pe AM) + GFT FACE + ait Aacely” Ay= Aatg)™ P= 4 Aug)" = 4a Aut) “aro 2p Avit e-em ay . subsotile, on yortulie fo —— =| k ber @engrerdmath 9 j= HH we tg P= & ty te] I= uri)” ultero > Lor Ay Bovia arn Es 1 PAM debt is to be paid in Y install ments the Nerd: poyrent leary 04 aryer tray he peceding . i money 5 worthy 10% and the fret payment Is made 3 yeots after the debt has Yeon granted. Cavnpute Hie fist ‘ponent acing ¥he, third year, Solution: Ths is an examge of Geometre rodent with determent Grven P=Pim n=4) [= 10%, 9° ao, hy=? aa subscrlbe, 09 yortuloe, Pf From the cadh Flaw diageam, sehny Das Aeal date Genginerdmath i *% g-e-C. . Fa0mp-Fi0,000 - P4000 L Io A. Paw _ p.og orf o% Co = Fob ,o0 2) ~t assumes uniform annua deprecation deposited wn a.antking ford whise daumlation 15 equal ty He tal depevation up the perivd oonsidered. CoC L% Di234 _ n L dddd d d lang Hoe Primula fy the abi cost. of area wheje: =d ard F=O-C. pe hk HO" 1) \ -(O-C)u Mso,] d= Cy-Co Cir - 1 (+iy-1 Caz Co- Dn Daz 4 Gt) l 24 Subsorilve 0 youtube, Re Songs Biden 15 Ere i) Aunt Wielding wachine ests Pus ,owo with an estimated \ife of % yenxs 14s salvare alue 1s Pajs0d find ts depeaaton using inky find metind. at 35% Sdlution: Bryon: L°S; = Pasi , Ces Pam, v= 854 , d=? de Co- CQi_ (P45,0- Paso) (0.05) _ ie 9/92. 54 citi)’ -1 (1+ 0.065)°- 1 2 Dedinirg Balance Mettod- LDBM) or Mathessn Forma Mebind 6 Th Chant: Paatage Metin ~ ths etd takes depeciation ciaige duvieg te yeor as a fred or constant porentoge of the otk value ot te tegunning of the ean dn? Cole)” in uber : Car Co t-k)"* Co al . k= rade of depereciation Cur Col) “ky 30 ssubbsotlee, 00 yputuloe, Ae 1) Date feng Bene We (ODEN) "Boyes 2. ~ smilov to the dechining Vralance tetred exceph drat Ke G2 GLhad n-T dn 2 [1- C] A modnine heving a Fret cost of F 60,000 will be rehired at the, eng of F yore Depreciation ast ic computed using tansant por centay eft Wha is He thal wt of depetaation upto the hime the waduite js whied the arma Ye of depedation ts 4.24%) 2 Solution Gevon: C= -Pldj000 ,L=% 5 k= ae 79% | Dy? C= ColI-K) = Pwopwc1-0.9999)* = Pangg. 4b De= CC® Pb0,000 - Faqag up = FF ob Od). 3) ~ the depreciotion charge \s computed Uased on the reverse digi on gum of the digits = Reverse Digrt Co- 0 bn Somat gis CO) 2 jbemtt (a-e On anima ney) ( 0 3\ Subseries on youtube, Bb Caz aD @engnerdinath Diz dv bdyt da tut din Dye m(2i-mt1) (G.-C) LOL) An asset ig parcoased fy Fajwo. Ts estimated \ife is Yeats after swhidn tt will be sold Air FL 000 - Find He bak value during the seand year if sum-of the- years digits CSYDM) depreciation ts Weed, Solution: Cron: (o> 400d, Cy= Flo, L210, m= 2, C=? Cig 0,- Dy Daz ml2b-=m+l) 6 c,-CJ LC be 19 Dy- 2(2U0)- 241) [ -4,000- Flow] Lociot D, = #2463. 64 0,2 Pond - Pa709. 64 =| 6236.36 32 subsorilve, 09 youtuloe, Bb 9) Serie Da Wa (3) Sesetia ~4he method of depenratinn that ayyrnes the, depenatin change is died) goprtona) He tumbel of units proce of rumor of eats tn servi. + aces on vatput units dy = Hx fs) Cy Cr, Dy= dy Fd. dybudt do uae: TT tolal units of output tothe and \ife Quy = total pumbbel of units of out put danny Hoe ath Yeorr * baged on houfs \n sence ano 22 Jaro Caz CD.) | Oped td, t dtu de L Hr vie: He = ota) numbel of fours up Me end life Hy = total ramber of lnowrs dung He, nt yeour A Television Company pardnased trachinery fae J00}000 00 July 4194, This esdmated that it Will hove a uschil fe of 10 ves; aap ‘ue. af 4,000, production of 400,000 unr:s ard working haurs of 120,000 . The company Wes the mach ery fir how boars wy F444 avd |s,000 hours tn (44. The machiitery produces, 3b 000 uns 1m 1994 and M000 umigin 149. Compute, the de prcaation fr 9% Hsing sone Datu method. 33 Subsoribe vn youtube Afb @enginerdinath Solution: Gren. (y= w,000 5 CUP wod ; L-Tp tes " T= Abd,000 units, Hy = 120,000 hows Qy? AA pod uni, ) Hep? 1% pnb Vows Baved og output ums. - 1 # to o0d- & 4000 dro * [E24 (Qe) (a oe re les oh) = |Pio, mU Boxed on hours in serntte : |G _| Fio,ow - 4,00 bye [<6 fi Fom-#0)| (00) = FP aod ~\sthe deveae in the Nalue, of 4 certain grvperty catwa| requrces such ab mines, oil, huber quae, rete. due d gosta extvoction) of tS untents. ) Fereniage or Depletion Mloumne Method Kon) Cost dunno He = Fred Fercentage of Gross hn none er Annual \nwme, subscribe on youtube R> 34 ten 2) Une We ade Wad oF Ook tid SN Degetion, ost duting he yeu = [ Lunt) cast of property) Luin sid Guang the yor VY Ctal uns inthe pepe) -tkis the denense. in Ye Yalue cf a curtonay dic +o the sneeage in Wut of nae} ucudlated tat wil ®aonualy urease He pice of the, commodirhes CPT Inu inflation Rote firthe eur = CCPL for the eat — CPL Ann the pews year ) / CPL fv the pevaus year CPL = CorgumerPrice Iwhex Fz ecg) —a inflation equation — here F= PC\+ le) ig= Combined intaest ale [ri,> Ofte) i cmp or A machine costs *P.adjo0 Hrday. UF inflation y. 6% gor yor ard \herest Is 10% por gear what will Ye the, opponinate, Fate woth of the radune, ; adjusted for ynflation , my 5 yanks ? 35 Sohubion: Cen: P= Pad; Feb% belo ww , Fe? Fe Puri.y ube lt Co= L4G) CNEL) : q = +L, Fe Pesci) F —— subsorilve- on yputube fs = Papolcito.e)(i+o1) J Genginordiatin tl = PP 4S, \ouh. 34 —4he sum of the frst cost ond the pent woth of all cost of replcnet tpralion ond mamionare, fora long me or freer. Cave No replacment only mantenonie ond for opratin arty period Copitlined Cost = Firet cost + Present Worth of per peval operation ond 0° maynfera nee, Delormne the coptalrred cost of a shuchuie, Hat requtes an intial} Investment of F,900,090 anfan anus) mreantenave yf rsp, 00, Anes, is 1%, P (D,wo Frsv,00D Solution: —---- 0 D | 2 P 3b . Subsofilbe on yartulie, Re p= = = T)b,o0D . 1yovd, 00 Genginerdmath d-IS Coptalized (ost = Fisk ust + P = Prevowd + P 1,000,000 = FP 4,500,000 Case ai Repaerent only, no warnterane ond of optation Coptaled cot. = Fira tat + Pract uorth of papchl replacement Lek & = amount needed to rene a sprgerty ~aeny k ponds X= omoust of pumciqa| twvested ot 1% He wloest on vintdn will arvount ts S every & periods. Xj = terest on XK eaeny riod, te period deposit towards fhe acurmulation of &. S "TTP Ie Pk Xi Xi Xe Ki AV K (ma) -1 Ge x | i ] S Cas or Subserbe-0n yputulbe, Rf Difaence Uchween P and A inva perpetuty Genginerdmath A AA y/o 8 P . - = Pe * TOR P is the gmount invested now at i%h per period Whee yntevest: at the end of every period forever s A while Xie He amount wnveded vow at 1% Fenix at the end of ovaly potiod Firever ig 8 If KA, them A= P. A ven! ongse was wnealed hy a fexble plant at a coat of Pax, o00 avd prijeded to have a weful he of 1 years Me ond of rho well life jt is edymaled to have a salyoge ‘alue. of Po p10 . Referee “iy coptalaed Bl iF inferesh 15 10° campourded oniqually Solution: FOOD Pow PHwo . le [> fs Pago oo) Fad0 0p 740,00 PH0,000 “cAsy Flow DRGRAM P20 Pron $270,000 FOR THE ENOINE” b tS wD WS K 34 Subsorilbe 01 youtube, Rf SS = 2.930, 0D = Pq Gory Semnerdmath x Liti)®-7— Utd.t4)®-1 4604 Capitaliaed Cost = Furst wel + XK = F300,m0 + Pay, bo4 (P3204) boy (Case feplaerent,trawnenae, and or operon) Oey parad Cophalied GA = Fork Get ¥ Present woth oF OF poxpal opchanond or maitlenanue + Present wort of wast of perpen vepote ment . Delermine te Capital 2ed cost OF a research Laboratory which requttes PH joo, Aer orignal ancucion, 1,000 of the rd of every your for the first b years and then ¥ t20, 060 each yeor theeattor fry operating expentes ur Pw wo alen D Ypous fe fegocemet eurprnent with interest at lols per annum, 20,000 bay moo (oF, 1% Solution: ma CPF, 12%, 6) D peration Pioooo(P/A,12%,6) | Praojt00 -FrduD F950) Poon P00, leno Pino jmo hand FOND Ta 3 Suosoniee, on yutube, Af A Gengnerdinath Let & We We ‘pesent uot of cast of perpetual operation 6 . C= Ploo, 00d pes) | P Pou (40.14) Q = 919,491.95 Replovenent ——grso0)a9 Foon F000 Lek X= Ye pesent worth of est oF perpeha replcerme nt: ~_S _ Pero pd _ = = OD, 6 (Ft1 U4 Oua)®-1 Fae, 993 Copttalrzed Coot = Figt cost + QU XK = Py,o00 000 + Para, 991.69 + F 655, 673.98 ul Fo, 573, 645.43 Income, [bales = Total cost = Fixed cost + Yotialole cost

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