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
Originally posted in
http://knol.google.com/k/narayana-rao/equivalent-annual-worth-comparisons/2utb2lsm2k7a/ 251
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
Originally posted in
http://knol.google.com/k/narayana-rao/equivalent-annual-worth-comparisons/2utb2lsm2k7a/ 251
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