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diff --git a/Non_Conventional_Energy_Resources/Chapter14.ipynb b/Non_Conventional_Energy_Resources/Chapter14.ipynb new file mode 100755 index 00000000..6a934569 --- /dev/null +++ b/Non_Conventional_Energy_Resources/Chapter14.ipynb @@ -0,0 +1,961 @@ +{
+ "metadata": {
+ "name": "",
+ "signature": "sha256:e6ad632e0276826941cf81a877ac22ef16f060c1d12c6f663c984c54d63b9330"
+ },
+ "nbformat": 3,
+ "nbformat_minor": 0,
+ "worksheets": [
+ {
+ "cells": [
+ {
+ "cell_type": "heading",
+ "level": 1,
+ "metadata": {},
+ "source": [
+ "Chapter14: Financial and Economic Evaluation"
+ ]
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.1:pg-414"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "P=2000 # in rs\n",
+ "i=12 # interest rate in %\n",
+ "n=6 # time in years\n",
+ "\n",
+ "F=P*(1+i/100.0)**n # Future value of investment\n",
+ "\n",
+ "print \"The amount will be Rs\",round(F)"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The amount will be Rs 3948.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 10
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.2:pg-414"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "import math\n",
+ "\n",
+ "# given data\n",
+ "\n",
+ "P=10.0 # in lakh rs\n",
+ "i=12.25 # interest rate in %\n",
+ "F=20 # final amount in lakh rs\n",
+ "\n",
+ "n=math.log(F/P)/math.log(1+i/100.0) # time in years\n",
+ "\n",
+ "print \"The number of years is \",round(n),\"years\"\n",
+ "\n",
+ "\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The number of years is 6.0 years\n"
+ ]
+ }
+ ],
+ "prompt_number": 6
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.3:pg-415"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#given data\n",
+ "F=100000 # final amount in rs\n",
+ "i=6 # interest rate in %\n",
+ "n=10 # time in years\n",
+ "\n",
+ "P=F*(1/(1+i/100.0)**n) # initial amount\n",
+ "\n",
+ "print \"The initial value is Rs\",round(P),"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The initial value is Rs 55839.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 11
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.4:pg-416"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#given data\n",
+ "A=500 # annual amount invested each year in rs\n",
+ "i=9 # interest rate in %\n",
+ "n=6 # time in years\n",
+ "\n",
+ "F=A*(((1+i/100.0)**n)-1)/(i/100.0) # future amount in rs\n",
+ "\n",
+ "print \"The Future amount will be Rs\",round(F)"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The Future amount will be Rs 3762.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 15
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.5:pg-417"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#given data\n",
+ "F=12000 # Total amount in rs\n",
+ "i=9 # interest rate in %\n",
+ "n=4 # time in years\n",
+ "\n",
+ "A=F*(i/100.0)/(((1+i/100.0)**n)-1) # \n",
+ "\n",
+ "print \"The amount deposited each year should be Rs\",int(A)"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The amount deposited each year should be Rs 2624\n"
+ ]
+ }
+ ],
+ "prompt_number": 17
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.6:pg-417"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#given data\n",
+ "A=30000.0 # amount save each year in rs\n",
+ "i=10/100.0 # interest rate \n",
+ "n=8 # time in years\n",
+ "\n",
+ "P=A*(((1+i)**n)-1)/(i*((1+i)**n)) # amount spent on replacement in rs \n",
+ "print \"Amount spent on replacement is Rs\",int(P)"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "Amount spent on replacement is Rs 160047\n"
+ ]
+ }
+ ],
+ "prompt_number": 26
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.7:pg-418"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "#given data\n",
+ "i=12/100.0 # interest rate \n",
+ "n=10 # time in years\n",
+ "\n",
+ "time=100.0 # days geyser is used in year\n",
+ "effi=0.9 # efficiency of geyser\n",
+ "w=100.0 # weight of water in kg\n",
+ "C=4.2 # heat capacity in kJ/kg-degree C\n",
+ "theta=60-15 # temperature difference in C\n",
+ "cost=4 # cost of electricity per kWh\n",
+ "\n",
+ "Elec=(1/effi)*w*C*theta/3600.0 # electricity used in kWh/day\n",
+ "Elec=round(Elec,2)\n",
+ "\n",
+ "\n",
+ "A=Elec*time*cost # annual saving in Rs\n",
+ "\n",
+ "P=A*(((1+i)**n)-1)/(i*((1+i)**n)) # final amount in rs\n",
+ "\n",
+ "print \"The final amount after 10 years is Rs\",int(P)\n",
+ "\n",
+ "\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The final amount after 10 years is Rs 13176\n"
+ ]
+ }
+ ],
+ "prompt_number": 41
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.8:pg-419"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "P=200000.0 #principal value in rs\n",
+ "i=10/100.0 # interest rate \n",
+ "n=25.0 # time in years\n",
+ "L=2.0 # power produced in kW\n",
+ "\n",
+ "A=P*(i*(1+i)**n)/(-1+(1+i)**n) # annualised capital cost in rs\n",
+ "\n",
+ "maintcost=P*0.05 # annual maintainence cost\n",
+ "Totalcost=A+maintcost # total annual cost\n",
+ "\n",
+ "Elec=L*0.25*10*365 # annual electricity production\n",
+ "\n",
+ "Cost=Totalcost/Elec # unit cost of electricity production\n",
+ "\n",
+ "print \"unit cost of electricity production is Rs\",round(Cost,1)\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "unit cost of electricity production is Rs 17.6\n"
+ ]
+ }
+ ],
+ "prompt_number": 48
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.9:pg-421"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "G=1 #gradient per period in lakh rs\n",
+ "i=12/100.0 # discount rate \n",
+ "n=5 # time in years\n",
+ "A1=10 # payment at end of 1st year in lakhs rs\n",
+ "loan=40 # load applied for in lakhs\n",
+ "\n",
+ "\n",
+ "AGin=(1/i)-5*1/(-1+(1+i)**n) # gradient to uniform series conversion factor\n",
+ "\n",
+ "Ag=A1+G*AGin # in lakhs Rs\n",
+ "\n",
+ "Pg=Ag*(-1+(1+i)**n)/(i*(1+i)**n) # present worth in lakhs rs\n",
+ "\n",
+ "print \"The present worth is Rs\",round(Pg,2),\"Lakh\"\n",
+ "\n",
+ "if (Pg*0.85<loan):\n",
+ " print \"Loan is not given as amount is less than applied for loan\"\n",
+ "else:\n",
+ " print \"Loan is given\"\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The present worth is Rs 42.44 Lakh\n",
+ "Loan is not given as amount is less than applied for loan\n"
+ ]
+ }
+ ],
+ "prompt_number": 54
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.10:pg-423"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "g=0.2 # annual gas price increase rate\n",
+ "i=10/100.0 # discount rate \n",
+ "n=15 # time in years\n",
+ "A1=350*8 # payment at end of 1st year in lakhs rs\n",
+ "\n",
+ "Pgg=(A1/(i-g))*(1-((1+g)/(1+i))**n) # present worth in Rs\n",
+ "\n",
+ "print \"The present worth of saving is Rs\",round(Pgg)"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The present worth of saving is Rs 75273.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 58
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.11:pg-424"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "Co=10000 # initial investment in rs\n",
+ "B=900.0 # net annual savings per year\n",
+ "\n",
+ "nsp=Co/B # simple payback period\n",
+ "\n",
+ "print \"The simple payback period is \",round(nsp,2)\n",
+ "if nsp<20:\n",
+ " print \"proposal may be accepted\"\n",
+ "else:\n",
+ " print \"proposal may not be accepted\""
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The simple payback period is 11.11\n",
+ "proposal may be accepted\n"
+ ]
+ }
+ ],
+ "prompt_number": 64
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.12:pg-425"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "import numpy\n",
+ "\n",
+ "ProjectA=[-2400,600,600,600,600,600] \n",
+ "ProjectB=[-2400,800,800,800,800,800]\n",
+ "ProjectC=[-2400,500,700,900,1100,1300]\n",
+ "\n",
+ "ProjAcu=numpy.zeros(6) # cumulative cash flow for project A\n",
+ "for i in range(0,6):\n",
+ " \n",
+ " ProjAcu[i]=ProjectA[i]+ProjAcu[i-1]\n",
+ " \n",
+ "ProjBcu=numpy.zeros(6) # cumulative cash flow for project B\n",
+ "for i in range(0,6):\n",
+ " \n",
+ " ProjBcu[i]=ProjectB[i]+ProjBcu[i-1]\n",
+ "\n",
+ "ProjCcu=numpy.zeros(6) # cumulative cash flow for project C\n",
+ "for i in range(0,6):\n",
+ " \n",
+ " ProjCcu[i]=ProjectC[i]+ProjCcu[i-1]\n",
+ " \n",
+ " \n",
+ "print \"\\t \\t \\t Project A \\t \\t \\t \\t \\t \\t \\t \\t \\t Project B \\t \\t \\t \\t \\t \\t \\t \\t \\t Project C\"\n",
+ "print \"year\\t \\t current \\t cummulative \\t \\t \\t \\t \\t current \\t cummulative \\t \\t \\t \\t \\t \\t \\t \\t current \\t \\t cummulative \\t\"\n",
+ "for i in range(0,6):\n",
+ " \n",
+ " print (i+1),\"\\t \\t \",ProjectA[i],\"\\t \\t \\t \\t \",ProjAcu[i],\" \\t \\t \\t \\t \\t \\t \",ProjectB[i],\" \\t \",ProjBcu[i],\"\\t \\t \\t \\t \\t \\t \\t \\t \\t\",ProjectC[i],\" \\t \",ProjCcu[i],\" \\t\"\n",
+ "\n",
+ "for i in range(0,6):\n",
+ " \n",
+ " if ProjAcu[i]==0:\n",
+ " PA=i \n",
+ "for i in range(0,6):\n",
+ " \n",
+ " if ProjBcu[i]==0:\n",
+ " PB=i\n",
+ "for i in range(0,6):\n",
+ " \n",
+ " if (ProjCcu[i]<0 and ProjCcu[i+1]>0):\n",
+ " PC=(i)-ProjCcu[i]/ProjectC[i+1]\n",
+ "\n",
+ "print \" The payback period for project 1 is \",PA,\"\\n The payback period for project 2 is\",PB,\"\\n The payback period for project 3 is \",round(PC,2)\n",
+ "\n",
+ "\n",
+ " \n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "\t \t \t Project A \t \t \t \t \t \t \t \t \t Project B \t \t \t \t \t \t \t \t \t Project C\n",
+ "year\t \t current \t cummulative \t \t \t \t \t current \t cummulative \t \t \t \t \t \t \t \t current \t \t cummulative \t\n",
+ "1 \t \t -2400 \t \t \t \t -2400.0 \t \t \t \t \t \t -2400 \t -2400.0 \t \t \t \t \t \t \t \t \t-2400 \t -2400.0 \t\n",
+ "2 \t \t 600 \t \t \t \t -1800.0 \t \t \t \t \t \t 800 \t -1600.0 \t \t \t \t \t \t \t \t \t500 \t -1900.0 \t\n",
+ "3 \t \t 600 \t \t \t \t -1200.0 \t \t \t \t \t \t 800 \t -800.0 \t \t \t \t \t \t \t \t \t700 \t -1200.0 \t\n",
+ "4 \t \t 600 \t \t \t \t -600.0 \t \t \t \t \t \t 800 \t 0.0 \t \t \t \t \t \t \t \t \t900 \t -300.0 \t\n",
+ "5 \t \t 600 \t \t \t \t 0.0 \t \t \t \t \t \t 800 \t 800.0 \t \t \t \t \t \t \t \t \t1100 \t 800.0 \t\n",
+ "6 \t \t 600 \t \t \t \t 600.0 \t \t \t \t \t \t 800 \t 1600.0 \t \t \t \t \t \t \t \t \t1300 \t 2100.0 \t\n",
+ " The payback period for project 1 is 4 \n",
+ " The payback period for project 2 is 3 \n",
+ " The payback period for project 3 is 3.27\n"
+ ]
+ }
+ ],
+ "prompt_number": 42
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.13:pg-426"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "import numpy\n",
+ "\n",
+ "ProjAcu=[-2400.0,-1864.0,-1386.0,-959.0,-578.0,-238.0] # in Rs\n",
+ "ProjBcu=[-2400,-1686,-1048,-479.0,30,484] # in Rs\n",
+ "ProjCcu=[-2400,-1954,-1396,-755,-56.0,683] # in Rs\n",
+ "\n",
+ "ProjAdis=[-2400,536,478,427,381,340] # in Rs\n",
+ "ProjBdis=[-2400,714,638,569,509.0,454] # in Rs\n",
+ "ProjCdis=[-2400,446,558,641,699,738.0] # in Rs\n",
+ "\n",
+ "PA=0\n",
+ "PB=0\n",
+ "PC=0\n",
+ "\n",
+ "for i in range(0,5):\n",
+ " if (ProjAcu[i]<0 and ProjAcu[i+1]>0):\n",
+ " PA=(i+1)-ProjAcu[i]/ProjAdis[i+1]\n",
+ "print \"For project A\"\n",
+ "if (PA==0):\n",
+ " print \"Net loss, Thus should be rejected\"\n",
+ "else:\n",
+ " print PA,\"years is payback period\" \n",
+ "for i in range(0,5):\n",
+ " \n",
+ " if (ProjBcu[i]<0 and ProjBcu[i+1]>0):\n",
+ " PB=(i)-ProjBcu[i]/ProjBdis[i+1]\n",
+ "print \"For project B\"\n",
+ "\n",
+ "if (PB==0):\n",
+ " print \"Net loss, Thus should be rejected\"\n",
+ "else:\n",
+ " print round(PB,2),\"years is payback period\" \n",
+ " \n",
+ "for i in range(0,5):\n",
+ " \n",
+ " if (ProjCcu[i]<0 and ProjCcu[i+1]>0):\n",
+ " PC=(i)-ProjCcu[i]/ProjCdis[i+1]\n",
+ "print \"For project C\"\n",
+ "\n",
+ "if (PC==0):\n",
+ " print \"Net loss, Thus should be rejected\"\n",
+ "else:\n",
+ " print round(PC,2),\"years is payback period\" \n",
+ "\n",
+ "\n",
+ "\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "For project A\n",
+ "Net loss, Thus should be rejected\n",
+ "For project B\n",
+ "3.94 years is payback period\n",
+ "For project C\n",
+ "4.08 years is payback period\n"
+ ]
+ }
+ ],
+ "prompt_number": 48
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.14:pg-427"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "import numpy\n",
+ "i=12.0/100 # interest rate \n",
+ "n=5.0 # years\n",
+ "\n",
+ "ProjectA=[-2400,600,600,600,600,600] \n",
+ "ProjectB=[-2400,800,800,800,800,800]\n",
+ "ProjectC=[-2400,500,700,900,1100,1300]\n",
+ "\n",
+ "\n",
+ "NPVA=ProjectA[0]+ProjectA[1]*(((1+i)**n) - 1)/(i*(1+i)**n)\n",
+ "\n",
+ "print \"NPV of Project A is \",round(NPVA)\n",
+ "\n",
+ "NPVB=ProjectB[0]+ProjectB[1]*(((1+i)**n) - 1)/(i*(1+i)**n)\n",
+ "\n",
+ "print \"NPV of Project B is \",round(NPVB)\n",
+ "\n",
+ "ProjectNPVc=0 # cumulative cash flow for project A\n",
+ "for i in range(0,5):\n",
+ " \n",
+ " ProjectNPVc=ProjectNPVc+(-ProjectC[0]+ProjectC[i])/(1+i)**(i+1)\n",
+ " \n",
+ "print \"NPV of Project C is \",round(ProjectNPVc)\n",
+ "\n",
+ "# The answer for project C is wrong in the book"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "NPV of Project A is -237.0\n",
+ "NPV of Project B is 484.0\n",
+ "NPV of Project C is 852.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 27
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.15:pg-428"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "import numpy\n",
+ "Co=20000.0 # cost in Rs\n",
+ "B=3000.0 # annual benefit in rs\n",
+ "n=15.0 # time in years\n",
+ "i=15.0/100 # initial guess for rate\n",
+ "NPV=numpy.zeros(4)\n",
+ "\n",
+ "NPV[0]=B*(((1+i)**n)-1)/(i*(1+i)**n)-Co\n",
+ "x=0\n",
+ "print \"Iteration no. \\t\\t\\t i* \\t \\t \\t \\t \\t\\t\\t NPV(i*)\" \n",
+ "while NPV[x]<0:\n",
+ " x=x+1 \n",
+ " i=i-0.01\n",
+ " NPV[x]=B*(((1+i)**n)-1)/(i*(1+i)**n)-Co\n",
+ " \n",
+ "for z in range(0,4):\n",
+ " print z+1,\" \\t \\t \\t \\t \\t \\t \\t \",0.15-(z/100.0),\" \\t \\t \\t\\t \\t \",round(NPV[z])\n",
+ "\n",
+ "IRR=i+(i+0.01-i)/(NPV[x]+NPV[x-1]) # using equation 14.28\n",
+ "\n",
+ "print \"The IRR is\", round(IRR*100,1)\n",
+ "\n",
+ "# the answer is slightly different in textbook due to approximation\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "Iteration no. \t\t\t i* \t \t \t \t \t\t\t NPV(i*)\n",
+ "1 \t \t \t \t \t \t \t 0.15 \t \t \t\t \t -2458.0\n",
+ "2 \t \t \t \t \t \t \t 0.14 \t \t \t\t \t -1573.0\n",
+ "3 \t \t \t \t \t \t \t 0.13 \t \t \t\t \t -613.0\n",
+ "4 \t \t \t \t \t \t \t 0.12 \t \t \t\t \t 433.0\n",
+ "The IRR is 12.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 79
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.16:pg-429"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "i=12.0/100 # interest rate\n",
+ "ProjAdisB=[0,536.0,478,427,381,340] # discounted benefit for A\n",
+ "ProjAdisC=[2400.0,0,0,0,0,0] # discounted cost for A\n",
+ "ProjBdisB=[0,714.0,638,569,509,454] # discounted benefit for B\n",
+ "ProjBdisC=[2400.0,0,0,0,0,0] # discounted cost for B\n",
+ "ProjCdisB=[0,446.0,558,641,699,738] # discounted benefit for C\n",
+ "ProjCdisC=[2400.0,0,0,0,0,0] # discounted cost for C\n",
+ "\n",
+ "BCforA=sum(ProjAdisB)/sum(ProjAdisC) # B mius C ratio\n",
+ "BCforB=sum(ProjBdisB)/sum(ProjBdisC) # B mius C ratio\n",
+ "BCforC=sum(ProjCdisB)/sum(ProjCdisC) # B mius C ratio\n",
+ "print \"B - C for project A is \",round(BCforA,1)\n",
+ "print \"B - C for project B is \",round(BCforB,1)\n",
+ "print \"B - C for project C is \",round(BCforC,2)"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "B - C for project A is 0.9\n",
+ "B - C for project B is 1.2\n",
+ "B - C for project C is 1.28\n"
+ ]
+ }
+ ],
+ "prompt_number": 1
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.17:pg-431"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "Co=12000.0 # cost in Rs\n",
+ "Ca=200.0 # annual maintainence in Rs\n",
+ "C12=3000.0 # replacement cost in 12th year\n",
+ "S=1000.0 # salvage value in rs\n",
+ "n=20.0 # time in years\n",
+ "i=11/100.0 # interest rate\n",
+ "\n",
+ "Cnet=Co-S*(1/(1+i)**n)+Ca*((((1+i)**n)-1)/(i*(i+1)**n))+C12*(1/(1+i)**12)\n",
+ "\n",
+ "CR=Cnet*(i*(1+i)**n)/(((1+i)**n)-1)\n",
+ "\n",
+ "print \"The Capital Recovery cost is Rs\",round(CR)"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The Capital Recovery cost is Rs 1799.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 95
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.18:pg-432"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "i=10/100.0 # rate\n",
+ "Acost=90000 # cost of A in Rs\n",
+ "Bcost=75000 # cost of B in Rs\n",
+ "Acashfl=26000 # annual cash flow of A in Rs\n",
+ "Bcashfl=26000 # annual cash flow of B in Rs\n",
+ "nA=5 # useful life of A in years\n",
+ "nB=4 # useful life of B in years\n",
+ "\n",
+ "NPVA=Acashfl*(((1+i)**nA) - 1)/(i*(1+i)**nA) - Acost # NPV for A\n",
+ "NPVB=Bcashfl*(((1+i)**nB) - 1)/(i*(1+i)**nB)- Bcost # NPV for B\n",
+ "\n",
+ "print \"The NPV for A is \",round(NPVA)\n",
+ "\n",
+ "print \"The NPV for B is \",round(NPVB)\n",
+ "\n",
+ "AEA=i*NPVA/(1-(1+i)**(-nA))\n",
+ "\n",
+ "\n",
+ "AEB=i*NPVB/(1-(1+i)**(-nB))\n",
+ "\n",
+ "print \"The AE for A is Rs \",int(AEA)\n",
+ "\n",
+ "print \"The AE for B is Rs \",int(AEB)\n",
+ "\n",
+ "print \"The machine B will have higher profitability\"\n",
+ "\n",
+ "\n",
+ "\n",
+ "\n",
+ "\n",
+ "\n",
+ "\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The NPV for A is 8560.0\n",
+ "The NPV for B is 7417.0\n",
+ "The AE for A is Rs 2258\n",
+ "The AE for B is Rs 2339\n",
+ "The machine B will have higher profitability\n"
+ ]
+ }
+ ],
+ "prompt_number": 108
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.19:pg-434"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "import numpy\n",
+ "Co=120000.0 # cost in Rs\n",
+ "N=5 # useful life\n",
+ "T=40/100.0 # tax rate \n",
+ "i=9/100.0 # interest rate\n",
+ "Earning=[33000.0,35000.0,37000.0,39000,41000.0]\n",
+ "Depreciate=Co/N # depreciation in Rs\n",
+ "pretax=numpy.zeros(5)\n",
+ "discshfl=numpy.zeros(5)\n",
+ "for x in range(0,5):\n",
+ " pretax=Earning[x]-Depreciate\n",
+ " tax=0.4*pretax\n",
+ " ernng=pretax-0.4*pretax\n",
+ " cashf=ernng+Depreciate\n",
+ " discshfl[x]=cashf/(1+i)**(x+1)\n",
+ "netdiscntincm=sum(discshfl) # net discount income in Rs\n",
+ "NPV=netdiscntincm-Co # NPV\n",
+ "print \"NPV of dryer is Rs\",int(NPV)\n",
+ "\n",
+ "# The answer in the book is wrong as the value of discounted cashflow is incorrect\n",
+ " "
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "NPV of dryer is Rs 2889\n"
+ ]
+ }
+ ],
+ "prompt_number": 135
+ },
+ {
+ "cell_type": "heading",
+ "level": 2,
+ "metadata": {},
+ "source": [
+ "Ex14.20:pg-435"
+ ]
+ },
+ {
+ "cell_type": "code",
+ "collapsed": false,
+ "input": [
+ "# given data\n",
+ "\n",
+ "Co=300000 # cost in Rs\n",
+ "S=20000.0 # salvage value in Rs\n",
+ "N=15 # useful life\n",
+ "\n",
+ "D=(Co-S)/N # Depreciation\n",
+ "BV=Co # Book Value\n",
+ "for i in range(0,N):\n",
+ " BV=BV-D;\n",
+ " print \"The Book value at the end of \",i+1,\"th year is Rs\",round(BV)\n"
+ ],
+ "language": "python",
+ "metadata": {},
+ "outputs": [
+ {
+ "output_type": "stream",
+ "stream": "stdout",
+ "text": [
+ "The Book value at the end of 1 th year is Rs 281333.0\n",
+ "The Book value at the end of 2 th year is Rs 262667.0\n",
+ "The Book value at the end of 3 th year is Rs 244000.0\n",
+ "The Book value at the end of 4 th year is Rs 225333.0\n",
+ "The Book value at the end of 5 th year is Rs 206667.0\n",
+ "The Book value at the end of 6 th year is Rs 188000.0\n",
+ "The Book value at the end of 7 th year is Rs 169333.0\n",
+ "The Book value at the end of 8 th year is Rs 150667.0\n",
+ "The Book value at the end of 9 th year is Rs 132000.0\n",
+ "The Book value at the end of 10 th year is Rs 113333.0\n",
+ "The Book value at the end of 11 th year is Rs 94667.0\n",
+ "The Book value at the end of 12 th year is Rs 76000.0\n",
+ "The Book value at the end of 13 th year is Rs 57333.0\n",
+ "The Book value at the end of 14 th year is Rs 38667.0\n",
+ "The Book value at the end of 15 th year is Rs 20000.0\n"
+ ]
+ }
+ ],
+ "prompt_number": 137
+ }
+ ],
+ "metadata": {}
+ }
+ ]
+}
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