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+{
+ "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