summaryrefslogtreecommitdiff
path: root/Engineering_Economics/Chapter10.ipynb
diff options
context:
space:
mode:
authorhardythe12015-04-07 15:58:05 +0530
committerhardythe12015-04-07 15:58:05 +0530
commit92cca121f959c6616e3da431c1e2d23c4fa5e886 (patch)
tree205e68d0ce598ac5caca7de839a2934d746cce86 /Engineering_Economics/Chapter10.ipynb
parentb14c13fcc6bb6d01c468805d612acb353ec168ac (diff)
downloadPython-Textbook-Companions-92cca121f959c6616e3da431c1e2d23c4fa5e886.tar.gz
Python-Textbook-Companions-92cca121f959c6616e3da431c1e2d23c4fa5e886.tar.bz2
Python-Textbook-Companions-92cca121f959c6616e3da431c1e2d23c4fa5e886.zip
added books
Diffstat (limited to 'Engineering_Economics/Chapter10.ipynb')
-rwxr-xr-xEngineering_Economics/Chapter10.ipynb357
1 files changed, 357 insertions, 0 deletions
diff --git a/Engineering_Economics/Chapter10.ipynb b/Engineering_Economics/Chapter10.ipynb
new file mode 100755
index 00000000..bc34bb84
--- /dev/null
+++ b/Engineering_Economics/Chapter10.ipynb
@@ -0,0 +1,357 @@
+{
+ "metadata": {
+ "name": "",
+ "signature": "sha256:28b0077be1a0d41b0cc471c0e34331f1edde6c138991b53632e2c3b3cb0de57c"
+ },
+ "nbformat": 3,
+ "nbformat_minor": 0,
+ "worksheets": [
+ {
+ "cells": [
+ {
+ "cell_type": "heading",
+ "level": 1,
+ "metadata": {},
+ "source": [
+ "Evaluation of Public Alternatives"
+ ]
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Example 10.1 Page 138"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#initiation of variable\n",
+ "Ii=4000000.0;#in Rs.\n",
+ "AM=150000.0;#in Rs.\n",
+ "AFS=600000.0;#in Rs.\n",
+ "Einc=50000.0;#in Rs.\n",
+ "i=12.0;#in % per annum\n",
+ "n=15.0;#in years\n",
+ "\n",
+ "#calculation\n",
+ "Cp=AM*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in Rs\n",
+ "TPW=Ii+Cp;#in RS\n",
+ "\n",
+ "#result\n",
+ "print \"Total present worth of costs in RS. : \",round(TPW,3);\n",
+ "\n",
+ "#Total present worth of fuel savings:\n",
+ "AI=600000.0;#in Rs.\n",
+ "G=50000.0;#in Rs.\n",
+ "i=12.0;#in % per annum\n",
+ "n=15.0;#in years\n",
+ "\n",
+ "#calculation\n",
+ "A=AI+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100);#in RS\n",
+ "Bp=A*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in Rs.\n",
+ "BCratio=Bp/(Ii+Cp);#unitless\n",
+ "\n",
+ "#result\n",
+ "print \"Present worth of fuel savings in Rs. : \",round(Bp,3);\n",
+ "print \"BCratio : \",round(BCratio,3);\n",
+ "print\"Since BC ratio is more than 1, the construction of the bridge across the river is justified.\";\n",
+ "print\"answers are slightly different from the book due to approximation\""
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "Total present worth of costs in RS. : 5021629.673\n",
+ "Present worth of fuel savings in Rs. : 5782527.265\n",
+ "BCratio : 1.152\n",
+ "Since BC ratio is more than 1, the construction of the bridge across the river is justified.\n",
+ "answers are slightly different from the book due to approximation\n"
+ ]
+ }
+ ],
+ "prompt_number": 1
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Example 10.2 Page 139"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#initiation of variable\n",
+ "Ic=80000000.0;#in Rs.\n",
+ "Aps=6000000.0;#in Rs.\n",
+ "Afs=3000000.0;#in Rs.\n",
+ "Aib=5000000.0;#in Rs.\n",
+ "Arb=2000000.0;#in Rs.\n",
+ "Amc=3000000.0;#in Rs.\n",
+ "i=12.0;#in % per annum\n",
+ "n=50.0;#in years\n",
+ "\n",
+ "#calculation\n",
+ "TAB=Afs+Aib+Arb;#in Rs.\n",
+ "PW_B=TAB*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in Rs\n",
+ "\n",
+ "#result\n",
+ "print \"Total present worth of benefits in RS. : \",round(PW_B,3);\n",
+ "\n",
+ "#Present worth of costs:\n",
+ "PW_C=Ic+Amc*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n)-Aps*(((1+i/100)**n)-1)/((i/100)*(1+i/100)**n);#in RS\n",
+ "BCratio=PW_B/PW_C;#unitless\n",
+ "\n",
+ "#result\n",
+ "print \"Present worth of costs in Rs. : \",round(PW_C,3);\n",
+ "print \"BCratio : \",round(BCratio,3);\n",
+ "print \"Since BC ratio is more than 1, the state govt. can implement the hydroelectric project.\";"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "Total present worth of benefits in RS. : 83044984.884\n",
+ "Present worth of costs in Rs. : 55086504.535\n",
+ "BCratio : 1.508\n",
+ "Since BC ratio is more than 1, the state govt. can implement the hydroelectric project.\n"
+ ]
+ }
+ ],
+ "prompt_number": 3
+ },
+ {
+ "cell_type": "heading",
+ "level": 3,
+ "metadata": {},
+ "source": [
+ "Example 10.3 Page 140"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#initiation of variable\n",
+ "#alternative 1\n",
+ "P=3000000.0;#in Rs.\n",
+ "B=900000.0;#in Rs.\n",
+ "i=10.0;#in % per annum\n",
+ "n=5.0;#in years\n",
+ "\n",
+ "#calculation\n",
+ "AE1=P*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs\n",
+ "BCratio=B/AE1;#unitless\n",
+ "\n",
+ "#result\n",
+ "print \"Annual equivalent of initial cost in Rs. : \",round(AE1,3);\n",
+ "print \"BCratio : \",round(BCratio,3);\n",
+ "\n",
+ "#Alternative A2 : \n",
+ "P=6000000.0;#in Rs.\n",
+ "B=1500000.0;#in Rs.\n",
+ "i=10.0;#in % per annum\n",
+ "n=7.0;#in years\n",
+ "\n",
+ "#calculation\n",
+ "AE2=P*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs\n",
+ "BCratio=B/AE2;#unitless\n",
+ "\n",
+ "#result\n",
+ "print \"Annual equivalent of initial cost in Rs. : \",round(AE2,3);\n",
+ "print \"BCratio : \",round(BCratio,3);\n",
+ "print \"The benefit cost ratio of alternative 2 is more than that of alternative A1. Hence, alternative A2 is to be selected. The comparisoon is made on a 35 years period which is the minimum common multiple of the lives of alternative 1 and 2\";"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "Annual equivalent of initial cost in Rs. : 791392.442\n",
+ "BCratio : 1.137\n",
+ "Annual equivalent of initial cost in Rs. : 1232432.998\n",
+ "BCratio : 1.217\n",
+ "The benefit cost ratio of alternative 2 is more than that of alternative A1. Hence, alternative A2 is to be selected. The comparisoon is made on a 35 years period which is the minimum common multiple of the lives of alternative 1 and 2\n"
+ ]
+ }
+ ],
+ "prompt_number": 4
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Example 10.4 Page 141"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#initiation of variable\n",
+ "#cost of the state\n",
+ "n=20.0;#in years\n",
+ "P=2500000000.0;#in Rs.\n",
+ "Agt=10000000.0;#in Rs.\n",
+ "Ai=1000000.0;#in Rs.\n",
+ "Com=48000.0;#in Rs./year/employee\n",
+ "C1=Com*300;#in Rs.\n",
+ "i=10.0;#in % per annum\n",
+ "\n",
+ "#calculation\n",
+ "C2=P*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs\n",
+ "CA=C2+C1;#in Rs\n",
+ "\n",
+ "#result\n",
+ "print \"Annual equivalent initial cost in Rs. : \",round(C2,3);\n",
+ "print \"Total Annual equivalent cost of the project in Rs. : \",round(CA,3);\n",
+ "\n",
+ "#Benefit to the state : \n",
+ "W=30000000.0;#in Rs.\n",
+ "A1=W*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);#in Rs.\n",
+ "Agpy=10000000.0;#in ton/year\n",
+ "A2=Agpy*(30-10);#in Rs.\n",
+ "AvgAI=1000000.0;#in tons Km.\n",
+ "G=20000000.0;#in Rs.\n",
+ "\n",
+ "#calculation\n",
+ "A3=A2+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100) ;#in Rs.\n",
+ "BA=A1+A3;#in Rs\n",
+ "BCratio=BA/CA;#unitless\n",
+ "print \"Annual equivalent average of transport cost saving in Rs. : \",round(A3,3);\n",
+ "print \"Total annual equivalent benefits to the state : \",round(BA,3);\n",
+ "print \"BCratio : \",round(BCratio,3);\n",
+ "print \"The benefit cost ratio is more than 1,the project is justified.\";\n",
+ "print \"the slight error in the answer of the book is due to approximation error\""
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "Annual equivalent initial cost in Rs. : 293649061.931\n",
+ "Total Annual equivalent cost of the project in Rs. : 308049061.931\n",
+ "Annual equivalent average of transport cost saving in Rs. : 330161500.91\n",
+ "Total annual equivalent benefits to the state : 333685289.653\n",
+ "BCratio : 1.083\n",
+ "The benefit cost ratio is more than 1,the project is justified.\n",
+ "the slight error in the answer of the book is due to approximation error\n"
+ ]
+ }
+ ],
+ "prompt_number": 1
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Example 10.5 Page 143"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#initiation of variable\n",
+ "#project A\n",
+ "i=9.0;#% per annum\n",
+ "n=50.0;#in years\n",
+ "P_A=150000000.0;#in RS.\n",
+ "Fcs_A=2500000;#in Rs.\n",
+ "Ib_A=3500000;#in Rs.\n",
+ "Rb_A=1000000;#in RS.\n",
+ "OMC_A=2000000.0;#in Rs.\n",
+ "Psy_A=10000000.0;#in Rs.\n",
+ "\n",
+ "#calculation\n",
+ "AE_A=P_A*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);\n",
+ "Cpy_A=AE_A+OMC_A-Psy_A;#in Rs.\n",
+ "Bpy_A=Fcs_A+Ib_A+Rb_A;#in Rs.\n",
+ "BCratio_A=Bpy_A/Cpy_A;#unitless\n",
+ "\n",
+ "#result\n",
+ "print \"Costs/year : \",round(Cpy_A,3);\n",
+ "print \"Benefits/year : \",round(Bpy_A,3);\n",
+ "print \"BC Ratio of project A : \",round(BCratio_A,3)\n",
+ "\n",
+ "\n",
+ "#Project B : \n",
+ "P_B=250000000.0;#in Rs.\n",
+ "\n",
+ "OMC_B=2500000.0;#in Rs.\n",
+ "Psy_B=12000000.0;#in Rs.\n",
+ "Fcs_B=3500000.0;#in Rs.\n",
+ "Ib_B=4500000.0;#in Rs.\n",
+ "Rb_B=2000000.0;#in RS.\n",
+ "AE_B=P_B*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);\n",
+ "Cpy_B=AE_B+OMC_B-Psy_B;#in Rs.\n",
+ "Bpy_B=Fcs_B+Ib_B+Rb_B;#in Rs.\n",
+ "BCratio_B=Bpy_B/Cpy_B;#unitless\n",
+ "\n",
+ "#result\n",
+ "print \"Costs/year : \",round(Cpy_B,3);\n",
+ "print \"Benefits/year : \",round(Bpy_B,3);\n",
+ "print \"BC Ratio of project B : \",round(BCratio_B,3)\n",
+ "\n",
+ "#Project C : \n",
+ "P_C=400000000.0;#in Rs.\n",
+ "OMC_C=3500000.0;#in Rs.\n",
+ "Psy_C=18000000.0;#in Rs.\n",
+ "Fcs_C=5000000.0;#in Rs.\n",
+ "Ib_C=6000000.0;#in Rs.\n",
+ "Rb_C=3500000.0;#in RS.\n",
+ "AE_C=P_C*((i/100)*(1+i/100)**n)/(((1+i/100)**n)-1);\n",
+ "Bpy_C=Fcs_C+Ib_C+Rb_C;#in Rs.\n",
+ "Cpy_C=AE_C+OMC_C-Psy_C;#in Rs.\n",
+ "BCratio_C=Bpy_C/Cpy_C;#unitless\n",
+ "\n",
+ "#result\n",
+ "print \"Costs/year : \",round(Cpy_C,3);\n",
+ "print \"Benefits/year : \",round(Bpy_C,3);\n",
+ "print \"BC Ratio of project C : \",round(BCratio_C,3)\n",
+ "print\"From the computations it is clear that only alternative A is eligible because other two alternatives have BC ratio less than one.\""
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "Costs/year : 5684030.212\n",
+ "Benefits/year : 7000000.0\n",
+ "BC Ratio of project A : 1.232\n",
+ "Costs/year : 13306717.021\n",
+ "Benefits/year : 10000000.0\n",
+ "BC Ratio of project B : 0.752\n",
+ "Costs/year : 21990747.233\n",
+ "Benefits/year : 14500000.0\n",
+ "BC Ratio of project C : 0.659\n",
+ "From the computations it is clear that only alternative A is eligible because other two alternatives have BC ratio less than one.\n"
+ ]
+ }
+ ],
+ "prompt_number": 8
+ }
+ ],
+ "metadata": {}
+ }
+ ]
+} \ No newline at end of file