Revenue - Income earned as a result of providing products or services ... Electing to Expense or Capitalize. If your company invests $200,000/year in equipment ...
Engineering Economy. IEN255 Chapter 2 Leftovers. Geometric Gradient (not linear but a percent! ... C interest periods per payment period. K payment periods per ...
Capital Budgeting - involves decisions related to fixed assets ... sale of long-term bonds (bond financing, includes floatation costs) Engineering Economy ...
Payback period - Pros and Cons. Pro. simple. minimize further analysis (screen all projects) ... Cons. no time value of money. no consideration of length of ...
Consistency of report formats. Need for unit costs/profits. Unequal project lives ... Determine the number of units to be produced each year over the life of the asset ...
Bn = Remaining Balance at the end of period n, with B0 = P. In = Interest payment in period n, where ... Precalculated interest and paid in equal installments ...
Inflation - a loss in purchasing power of money over time. Deflation - prices decrease of time ... Conversion from Actual to Constant Dollars (11.5) example ...