diff options
Diffstat (limited to 'Engineering_Economics/Chapter5.ipynb')
-rwxr-xr-x | Engineering_Economics/Chapter5.ipynb | 352 |
1 files changed, 0 insertions, 352 deletions
diff --git a/Engineering_Economics/Chapter5.ipynb b/Engineering_Economics/Chapter5.ipynb deleted file mode 100755 index 398e418d..00000000 --- a/Engineering_Economics/Chapter5.ipynb +++ /dev/null @@ -1,352 +0,0 @@ -{
- "metadata": {
- "name": "",
- "signature": "sha256:e388f34dd67bfe5948d20d52a601f7e8e53b92aa882e9a754ed91176569417c0"
- },
- "nbformat": 3,
- "nbformat_minor": 0,
- "worksheets": [
- {
- "cells": [
- {
- "cell_type": "heading",
- "level": 1,
- "metadata": {},
- "source": [
- "Future Worth Method"
- ]
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 5.1,Page 54"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initialisation of variable\n",
- "#alternate A\n",
- "P=5000000.0;#in Rs\n",
- "A=2000000.0;#in Rs\n",
- "i=18.0;#in % per annum\n",
- "n=4.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_A=(-P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100));#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of alternative A in RS. \",round(FW_A,3);\n",
- "\n",
- "#alternate B\n",
- "P=4500000.0;#in Rs\n",
- "A=1800000.0;#in Rs\n",
- "i=18.0;#in % per annum\n",
- "n=4.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_B=(-P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100));#in RS\n",
- "print \"The future worth amount of alternative B in RS. \", round(FW_B,3);\n",
- "print \"The future worth of alternative A is greater than that of alternative B. Thus, alternative A should be selected.\";\n",
- "print \" Calculation in the book is not accurate.\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "The future worth amount of alternative A in RS. 736975.2\n",
- "The future worth amount of alternative B in RS. 663277.68\n",
- "The future worth of alternative A is greater than that of alternative B. Thus, alternative A should be selected.\n",
- " Calculation in the book is not accurate.\n"
- ]
- }
- ],
- "prompt_number": 3
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 5.2,Page 58"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initialisation of variable\n",
- "#alternate 1\n",
- "FC=2000000.0;#in Rs\n",
- "AI=800000.0;#in Rs\n",
- "ATax=80000.0;#in Rs\n",
- "NetAI=AI-ATax;#in Rs\n",
- "i=12.0;#in % per annum\n",
- "n=20.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_1=(-FC*(1+i/100)**n)+(NetAI*(((1+i/100)**n)-1)/(i/100));#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of alternative 1 in RS. : \", round(FW_1,3)\n",
- "\n",
- "#alternative2\n",
- "FC=3600000.0;#in Rs\n",
- "AI=980000.0;#in Rs\n",
- "ATax=150000.0;#in Rs\n",
- "NetAI=AI-ATax;#in Rs\n",
- "i=12.0;#in % per annum\n",
- "n=20.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_2=(-FC*(1+i/100)**n)+(NetAI*(((1+i/100)**n)-1)/(i/100));#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of alternative 2 in RS.\",round(FW_2,3)\n",
- "print\"The future worth of alternative 1 is greater than that of alternative 2. Thus, building the gas station is the best alternative.\";\n",
- "print \" Calculation in the book is not accurate.\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "The future worth amount of alternative 1 in RS. : 32585172.373\n",
- "The future worth amount of alternative 2 in RS. 25076872.093\n",
- "The future worth of alternative 1 is greater than that of alternative 2. Thus, building the gas station is the best alternative.\n",
- " Calculation in the book is not accurate.\n"
- ]
- }
- ],
- "prompt_number": 5
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 5.3,Page 59"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initialisation of variable\n",
- "#part a\n",
- "#alternative 1\n",
- "P=500000.0;#in Rs\n",
- "A1=50000.0;#in Rs\n",
- "G=50000.0;#in Rs\n",
- "i=8.0;#in % per annum\n",
- "n=6.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_1=(-P*(1+i/100)**n)+(A1+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100))*(((1+i/100)**n)-1)/(i/100);#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of alternative 1 in RS. \", round(FW_1,3);\n",
- "\n",
- "#alternative 2\n",
- "P=700000.0;#in Rs\n",
- "A1=70000.0;#in Rs\n",
- "G=70000.0;#in Rs\n",
- "i=8.0;#in % per annum\n",
- "n=6.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_2=(-P*(1+i/100)**n)+(A1+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100))*(((1+i/100)**n)-1)/(i/100);#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of alternative 2 in RS. \", round(FW_2,3);\n",
- "print \"The future worth of alternative 2 is greater than that of alternative 1. Thus, alternative 2 must be selected.\";\n",
- "\n",
- "\n",
- "#part b\n",
- "#alternative a\n",
- "P=500000.0;#in Rs\n",
- "A1=50000.0;#in Rs\n",
- "G=50000.0;#in Rs\n",
- "i=9.0;#in % per annum\n",
- "n=6.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_1=(-P*(1+i/100)**n)+(A1+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100))*(((1+i/100)**n)-1)/(i/100);#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of alternative 1 in RS. \", round(FW_1,3);\n",
- "\n",
- "#altenative 2\n",
- "P=700000.0;#in Rs\n",
- "A1=70000.0;#in Rs\n",
- "G=70000.0;#in Rs\n",
- "i=9.0;#in % per annum\n",
- "n=6.0;#in years\n",
- "\n",
- "#calculation\n",
- "FW_1=(-P*(1+i/100)**n)+(A1+G*(((1+i/100)**n)-i*n/100-1)/(((i/100)*(1+i/100)**n)-i/100))*(((1+i/100)**n)-1)/(i/100);#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of alternative 2 in RS.\", round(FW_1,3);\n",
- "print \"The negative sign of alternatives future worth indicates that alternative 2 incurs loss. Thus, none of the two alternatives should be selected. \";\n",
- "print \" Calculation in the book is not accurate.\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "The future worth amount of alternative 1 in RS. 408314.938\n",
- "The future worth amount of alternative 2 in RS. 571640.914\n",
- "The future worth of alternative 2 is greater than that of alternative 1. Thus, alternative 2 must be selected.\n",
- "The future worth amount of alternative 1 in RS. 383913.653\n",
- "The future worth amount of alternative 2 in RS. 537479.115\n",
- "The negative sign of alternatives future worth indicates that alternative 2 incurs loss. Thus, none of the two alternatives should be selected. \n",
- " Calculation in the book is not accurate.\n"
- ]
- }
- ],
- "prompt_number": 8
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 5.4 Page 62"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initialisation of variable\n",
- "#alternative 1\n",
- "P=8000000.0;#in Rs\n",
- "A=800000.0;#in Rs\n",
- "i=20.0;#in % per annum\n",
- "n=12.0;#in years\n",
- "Salvage=500000;#in Rs\n",
- "\n",
- "#calcualtion\n",
- "FW1=P*(1+i/100)**n+A*(((1+i/100)**n)-1)/(i/100)-Salvage;#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth for this alternative in RS.\",round(FW1,3)\n",
- "\n",
- "#alternative 2\n",
- "P=7000000.0;#in Rs\n",
- "A=900000.0;#in Rs\n",
- "i=20.0;#in % per annum\n",
- "n=12.0;#in years\n",
- "Salvage=400000;#in Rs\n",
- "\n",
- "#calculation\n",
- "FW2=P*(1+i/100)**n+A*(((1+i/100)**n)-1)/(i/100)-Salvage;#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth for this alternative in RS.\",round(FW2,3);\n",
- "\n",
- "#alternative 3\n",
- "P=9000000.0;#in Rs\n",
- "A=850000.0;#in Rs\n",
- "i=20.0;#in % per annum\n",
- "n=12.0;#in years\n",
- "Salvage=700000;#in Rs\n",
- "\n",
- "#calculation\n",
- "FW3=P*(1+i/100)**n+A*(((1+i/100)**n)-1)/(i/100)-Salvage;#in RS\n",
- "\n",
- "print \"The future worth for this alternative in RS. \",round(FW3,3)\n",
- "print \"The future worth of alternative 2 is less than that of other two alternatives. Thus, Ms. Krishna castings should buy the annealing furnace from manufacturer 2.\";\n",
- "print \" Calculation in the book is not accurate.\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "The future worth for this alternative in RS. 102493205.379\n",
- "The future worth for this alternative in RS. 97635155.155\n",
- "The future worth for this alternative in RS. 113188330.939\n",
- "The future worth of alternative 2 is less than that of other two alternatives. Thus, Ms. Krishna castings should buy the annealing furnace from manufacturer 2.\n",
- " Calculation in the book is not accurate.\n"
- ]
- }
- ],
- "prompt_number": 10
- },
- {
- "cell_type": "heading",
- "level": 2,
- "metadata": {},
- "source": [
- "Example 5.5 Page 64"
- ]
- },
- {
- "cell_type": "code",
- "collapsed": false,
- "input": [
- "#initialisation of variable\n",
- "#Machine A\n",
- "P=400000.0;#in Rs\n",
- "A=40000.0;#in Rs\n",
- "S=200000.0;#in Rs\n",
- "i=12.0;#in % per annum\n",
- "n=4.0#in years\n",
- "\n",
- "#calculation\n",
- "FW_A=(P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100))-S;#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of Machine A in RS. \",round(FW_A,3);\n",
- "\n",
- "#Machine B\n",
- "P=800000.0;#in Rs\n",
- "A=0.0;#in Rs\n",
- "S=550000.0;#in Rs\n",
- "i=12.0;#in % per annum\n",
- "n=4.0#in years\n",
- "\n",
- "#calculation\n",
- "FW_B=(P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100))-S;#in RS\n",
- "\n",
- "#result\n",
- "print \"The future worth amount of Machine B in RS. \",round(FW_B,3);\n",
- "print \"The future worth of Machine A is less than that of Machine B. Thus, Machine A should be selected.\";\n",
- "print \" Calculation in the book is not accurate\""
- ],
- "language": "python",
- "metadata": {},
- "outputs": [
- {
- "output_type": "stream",
- "stream": "stdout",
- "text": [
- "The future worth amount of Machine A in RS. 620580.864\n",
- "The future worth amount of Machine B in RS. 708815.488\n",
- "The future worth of Machine A is less than that of Machine B. Thus, Machine A should be selected.\n",
- " Calculation in the book is not accurate\n"
- ]
- }
- ],
- "prompt_number": 13
- }
- ],
- "metadata": {}
- }
- ]
-}
\ No newline at end of file |