(BQ) Part 1 book "Engineering economy" has contents: Foundations of engineering economy, factors - how time and interest affect money, combining factors and spreadsheet functions, nominal and effective interest rates, present worth analysis, annual worth analysis,.and other contents. | Format for Spreadsheet Functions on Excel® Present worth: Contents of ( ) = PV(i%, n, A, F) for constant A series; single F value = NPV(i%,second_cell:last_cell) + first_cell for varying cash flow series Future worth: = FV(i%, , A, P) n for constant A series; single P value Annual worth: = PMT(i%, n, , F ) P for single amounts with no A series = PMT(i%, n, NPV) to find AW from NPV; embed NPV function Number of periods (years): = NPER(i%, A, P, ) F for constant A series; single P and F (Note: The PV, FV, and PMT functions change the sense of the sign. Place a minus in front of the function to retain the same sign.) Rate of return: = RATE(n, , , F ) AP for constant A series; single P and F = IRR(first_cell:last_cell) for varying cash flow series Interest rate: = EFFECT(r%, m) = NOMINAL(i%, m) for effective annual i, compounded m times per year for nominal r, compounded m times per period Depreciation: = SLN(P, , ) Sn = DDB(P, , , , ) for Sntd double declining balance depreciation period t at rate d (optional) straight line depreciation for each period = DB(P,S,n,t) declining balance, rate determined by the function MACRS depreciation for year t at rate d for DDB or DB method = VBD(P,0, ,MAX(0, t−), n MIN(n, −), ) t d Logical IF function: = IF(logical_test,value_if_true,value_if_false) for logical two-branch operations Relations for Discrete Cash Flows with End-of-Period Compounding Single Amount F⧸P Compound amount (F⧸P,i,n) = (1 + i)n P⧸F Present worth 1 (P⧸F,i,n) = ——— (1+i)n P⧸A Present worth Uniform Series A⧸P Capital recovery F⧸A Compound amount A⧸F Sinking fund Arithmetic Gradient Geometric Gradient Factor Notation and Formula Relation PG⧸G Present worth AG⧸G Uniform series Pg⧸A1 and g Present worth F = P(F⧸P,i,n) i(1 + i)n (A⧸P,i,n) = ————— (1 + i)n −1 F (Sec. .
