Use this when the method is AEC, the difference in "n" does not affect the answer

AEC (ANNUAL EQUIVALENT COST) METHOD

1st Option 2nd Option

Co ₱2.00 Co ₱244,030.00
Ao ₱75,567.00 Ao ₱62,704.00
CL ₱197,203.10 CL ₱17,516.00
n 10 n 7
i 20% i 24%

- 0.238522756882859 (1+i)^n 6.1917364224

- 0.308421552217993 (1+i)^n 4.50766669594624
does not affect the answer Use this when the method is AC, the difference in "n

ETHOD AC (ANNUAL COST) METHO

1st AEC 1st Option 2nd Option

Co ₱3,404,063.00 Co
₱67,970.67
Ao ₱210,898.00 Ao
2nd AEC CL ₱340,406.30 CL
n 14 n
₱136,769.64
i 22% i

i/((1+i)^n -1) 0.03852275688 - 0.234490651216167 (1+i)^n

i/((1+i)^n -1) 0.06842155222 - 0.234490651216167 (1+i)^n
is AC, the difference in "n" does not affect the answer Use this when the met

AC (ANNUAL COST) METHOD

2nd Option 1st AC 1st Option

₱3,404,063.00 Co
₱1,004,186.24
₱210,898.00 Ao
₱340,406.30 2nd AC CL
14 n
₱1,004,186.24
22% i

16.1822024226592 ((1+i)^n -1)/i 69.010011012087 Co-CL

16.1822024226592 ((1+i)^n -1)/i 69.010011012087 pvaf
(1+i)^n
(1+i)^-n
n (1st)
4
8
-
-
-
-
-
-
-
-
SUM

1st Option
Co
Ao
 CL
n
i

Co-CL
pvaf
(1+i)^n
(1+i)^-n
n (1st)
4
8
-
-
-
-
-
-
-
-
SUM
 Use this when the method is PV, the difference in "n" does affect the answer
EXAMPLE IS PROVIDED BELOW
PV (PRESENT VALUE) METHOD
n1 ≠ n2
1st Option 2nd Option 1st PV
₱7,997,412 Co ₱5,000,000
₱14,575,777.56
₱278,435 Ao ₱200,000
₱107,204 CL ₱50,000 2nd PV
4 n 6
₱7,427,836.17
21% i 21%

₱7,890,208 Co-CL ₱4,950,000 LCM

4.27844953335824 pvaf 4.27844953335824
12
9.84973267580761 (1+i)^n 9.84973267580761
0.101525597994771 (1+i)^-n 0.10152560
n (1st) n (2nd)
3680840.26338988 6 1577222.54766627
1717139.14824452 - #VALUE!
#VALUE! - #VALUE!
#VALUE! - #VALUE!
#VALUE! - #VALUE!
#VALUE! - #VALUE!
#VALUE! - #VALUE!
#VALUE! - #VALUE!
#VALUE! - #VALUE!
#VALUE! - #VALUE!
₱5,397,979 SUM ₱1,577,223

EXAMPLE ON HOW TO USE

PV (PRESENT VALUE) METHOD
n1 ≠ n2
1st Option 2nd Option 1st PV
₱233,073 Co ₱5,000,000
₱707,836.16
₱89,445 Ao ₱200,000
 ₱14,765 CL ₱50,000 2nd PV
4 n 6
₱7,539,980.50
24% i 20%

₱218,308 Co-CL ₱4,950,000 LCM

3.85136335200505 pvaf 4.43921672607692
12
13.2147886587818 (1+i)^n 8.916100448256
0.0756727955187885 (1+i)^-n 0.11215665
n (1st) n (2nd) you need to adjust
92338.5201852475 6 1657744.9845679 this part. Manually
39056.7560968969 - #VALUE! put increments on the
yellow cells until it
#VALUE! - #VALUE! meets the number
#VALUE! - #VALUE! BEFORE the LCM. Plus,
adjust the SUM so it
#VALUE! - #VALUE! will it will give the
#VALUE! - #VALUE! overall total.
#VALUE! - #VALUE! Using question 2 as an
#VALUE! - #VALUE! example.
#VALUE! - #VALUE!
#VALUE! - #VALUE!
₱131,395 SUM ₱1,657,745
 Use this when the method is PV, the difference in "n" does not affect the answer

PV (PRESENT VALUE) METHOD

n1 = n2
1st Option 2nd Option 1st PV
Co ₱100,000 Co ₱65,000
₱172,711.13
Ao ₱20,000 Ao ₱20,000
CL ₱5,000 CL ₱2,500 2nd PV
n 5 n 5
₱139,263.43
i 10% i 10%

Pvaf 3.79078676940845 (1+i)^n 1.61051 (1+i)^-n

Pvaf 3.79078676940845 (1+i)^n 1.61051 (1+i)^-n
t affect the answer

PV (PRESENT VALUE) METHOD

Cebu City
1st PV Plan A Plan B
Co ₱154,228,960 Co
₱172,711.13
Ao 1 ₱7,738,960 Co 2 (Pumping eqp)
2nd PV Ao 2 ₱12,879,312 CL
Ao n1 20 Ao 1
₱139,263.43
Ao n2 20 Ao 2
L 40 L
0.62092132305915 i 21.00% CL n
0.62092132305915 Ao1 ₱36,037,943.98 Ao n1
Ao2 ₱1,325,142.74 Ao n2
(1+i)^(Ao n1) 45.2592555681759 i
(1+i)^(Ao n2) 45.2592555681759 Ao1
(1+i)^(- Ao n2) 0.02209492815218 Ao2
(PRESENT VALUE) METHOD
Cebu City
Plan B 1st PV
₱174,214,419,000,000
₱50,000,000 ₱191,592,046.72
₱2,000,000
₱9,890,478 2nd PV
₱14,514,641
40 ₱174,214,515,286,274.00
20
10 (1+i)^(CL n) 62.82062151752
30 (1+i)^(Ao n1) 7.925946096052
23% (1+i)^(Ao n2) 497.9128598683
₱37,576,596.21 (1+i)^(- Ao n1) 0.126167903223
₱7,946,103.93 (1+i)^(L) 3946.430487848
(Co2 - CL)/(1+i)^(CL n) ₱764,080.31
CL/(1+i)^(L) ₱506.79
 PV (PRESENT VALUE) METHOD
EDSA and Zamboanga
1st Option 2nd Option
Co ₱2,067,962,147 Co
Ao 1 ₱71,054,007 Co 2
Ao 2 ₱79,964,628 Ao 1
Ao n1 10 Ao 2
L 20 Ao n1
Ao n2 10 Ao n2
i 23.00% i
Co 2 n
pvaf 1 3.79926998598552 pvaf 1
pvaf 2 3.79926998598552 pvaf 2
(1+i)^n1 7.92594609605189 (1+i)^n1
(1+i)^n2 7.92594609605189 (1+i)^n2
(1+i)^-n2 0.126167903223329 (1+i)^-n2
NT VALUE) METHOD
and Zamboanga
2nd Option 1st PV
₱1,500,000,000
₱2,225,013,815 ₱2,376,246,221.99
₱60,169,607
₱55,786,141 2nd PV
15
15 ₱1,837,925,138
24.00%
15
4.00129409469568
4.00129409469568 (1+i)^-Co2n 0.0396894172730378
25.1956332117612
25.1956332117612
0.0396894172730378