Equivalent Annual-Worth Comparisons

Engineering Economics Revision Article Series

With an annual worth method, all the receipts and disbursements occuring over a period of time due to an engineering alternative are converted to an equivalent uniform yearly payment. Such a calculation can give annual cost of various alternative engineering alternatives.

References

Engineering Economics, 4th Edition, James L. Riggs, David D. Bedworth, and Sabah U. Randhawa, McGraw Hill, New York, 1996


For more details

http://ise.tamu.edu/people/faculty/butenko/INEN303/chap6.pdf

Problems and Solutions on Equivalent Annual Worth



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