CIVILEN 3080 Lecture Notes - Lecture 5: Mansfield, Discounted Cash Flow, Interest Rate
2 May 2016
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Power loss = 6. 516/a, where a = cross sectional area. Copper = to buy, /lb salvage, density = 555 lb/ft3. Interest rate = 11: calculate the optimal cross-sectional area of the conductor, calculate the annual equivalent total cost for the value in (a) Aec = capital recovery cost + operating cost = material cost + energy loss cost. One of two main analysis techniques based on the concept of equivalence. The equivalence for ae is ae(i) = pw(i)(a/p, i, n) Ae analysis y8els the same decision result as pw analysis. One of the most important applications of ae analysis because it allows managers to calculate an annual equivalent cost of capital for ease of itemization with annual operating costs. The equation for cr(i) is: (i s)(a/p, i, n) + is. Where i = initial cost and s = salvage value. Interest earned on your invested capital, or commonly known as internal rate of return (irr)
