1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
|
{
"metadata": {
"name": "EE-5"
},
"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\nP=5000000.0;#in Rs\nA=2000000.0;#in Rs\ni=18.0;#in % per annum\nn=4.0;#in years\n\n#calculation\nFW_A=(-P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100));#in RS\n\n#result\nprint \"The future worth amount of alternative A in RS. \",round(FW_A,3);\n\n#alternate B\nP=4500000.0;#in Rs\nA=1800000.0;#in Rs\ni=18.0;#in % per annum\nn=4.0;#in years\n\n#calculation\nFW_B=(-P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100));#in RS\nprint \"The future worth amount of alternative B in RS. \", round(FW_B,3);\nprint \"The future worth of alternative A is greater than that of alternative B. Thus, alternative A should be selected.\";\nprint \" 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\nThe future worth amount of alternative B in RS. 663277.68\nThe 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": 3,
"metadata": {},
"source": "Example 5.2,Page 58"
},
{
"cell_type": "code",
"collapsed": false,
"input": "#initialisation of variable\n#alternate 1\nFC=2000000.0;#in Rs\nAI=800000.0;#in Rs\nATax=80000.0;#in Rs\nNetAI=AI-ATax;#in Rs\ni=12.0;#in % per annum\nn=20.0;#in years\n\n#calculation\nFW_1=(-FC*(1+i/100)**n)+(NetAI*(((1+i/100)**n)-1)/(i/100));#in RS\n\n#result\nprint \"The future worth amount of alternative 1 in RS. : \", round(FW_1,3)\n\n#alternative2\nFC=3600000.0;#in Rs\nAI=980000.0;#in Rs\nATax=150000.0;#in Rs\nNetAI=AI-ATax;#in Rs\ni=12.0;#in % per annum\nn=20.0;#in years\n\n#calculation\nFW_2=(-FC*(1+i/100)**n)+(NetAI*(((1+i/100)**n)-1)/(i/100));#in RS\n\n#result\nprint \"The future worth amount of alternative 2 in RS.\",round(FW_2,3)\nprint\"The future worth of alternative 1 is greater than that of alternative 2. Thus, building the gas station is the best alternative.\";\nprint \" 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\nThe future worth amount of alternative 2 in RS. 25076872.093\nThe 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\nP=500000.0;#in Rs\nA1=50000.0;#in Rs\nG=50000.0;#in Rs\ni=8.0;#in % per annum\nn=6.0;#in years\n\n#calculation\nFW_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\nprint \"The future worth amount of alternative 1 in RS. \", round(FW_1,3);\n\n#alternative 2\nP=700000.0;#in Rs\nA1=70000.0;#in Rs\nG=70000.0;#in Rs\ni=8.0;#in % per annum\nn=6.0;#in years\n\n#calculation\nFW_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\nprint \"The future worth amount of alternative 2 in RS. \", round(FW_2,3);\nprint \"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\nP=500000.0;#in Rs\nA1=50000.0;#in Rs\nG=50000.0;#in Rs\ni=9.0;#in % per annum\nn=6.0;#in years\n\n#calculation\nFW_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\nprint \"The future worth amount of alternative 1 in RS. \", round(FW_1,3);\n\n#altenative 2\nP=700000.0;#in Rs\nA1=70000.0;#in Rs\nG=70000.0;#in Rs\ni=9.0;#in % per annum\nn=6.0;#in years\n\n#calculation\nFW_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\nprint \"The future worth amount of alternative 2 in RS.\", round(FW_1,3);\nprint \"The negative sign of alternatives future worth indicates that alternative 2 incurs loss. Thus, none of the two alternatives should be selected. \";\nprint \" 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\nThe future worth amount of alternative 2 in RS. 571640.914\nThe future worth of alternative 2 is greater than that of alternative 1. Thus, alternative 2 must be selected.\nThe future worth amount of alternative 1 in RS. 383913.653\nThe future worth amount of alternative 2 in RS. 537479.115\nThe 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\nP=8000000.0;#in Rs\nA=800000.0;#in Rs\ni=20.0;#in % per annum\nn=12.0;#in years\nSalvage=500000;#in Rs\n\n#calcualtion\nFW1=P*(1+i/100)**n+A*(((1+i/100)**n)-1)/(i/100)-Salvage;#in RS\n\n#result\nprint \"The future worth for this alternative in RS.\",round(FW1,3)\n\n#alternative 2\nP=7000000.0;#in Rs\nA=900000.0;#in Rs\ni=20.0;#in % per annum\nn=12.0;#in years\nSalvage=400000;#in Rs\n\n#calculation\nFW2=P*(1+i/100)**n+A*(((1+i/100)**n)-1)/(i/100)-Salvage;#in RS\n\n#result\nprint \"The future worth for this alternative in RS.\",round(FW2,3);\n\n#alternative 3\nP=9000000.0;#in Rs\nA=850000.0;#in Rs\ni=20.0;#in % per annum\nn=12.0;#in years\nSalvage=700000;#in Rs\n\n#calculation\nFW3=P*(1+i/100)**n+A*(((1+i/100)**n)-1)/(i/100)-Salvage;#in RS\n\nprint \"The future worth for this alternative in RS. \",round(FW3,3)\nprint \"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.\";\nprint \" 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\nThe future worth for this alternative in RS. 97635155.155\nThe future worth for this alternative in RS. 113188330.939\nThe 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\nP=400000.0;#in Rs\nA=40000.0;#in Rs\nS=200000.0;#in Rs\ni=12.0;#in % per annum\nn=4.0#in years\n\n#calculation\nFW_A=(P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100))-S;#in RS\n\n#result\nprint \"The future worth amount of Machine A in RS. \",round(FW_A,3);\n\n#Machine B\nP=800000.0;#in Rs\nA=0.0;#in Rs\nS=550000.0;#in Rs\ni=12.0;#in % per annum\nn=4.0#in years\n\n#calculation\nFW_B=(P*(1+i/100)**n)+(A*(((1+i/100)**n)-1)/(i/100))-S;#in RS\n\n#result\nprint \"The future worth amount of Machine B in RS. \",round(FW_B,3);\nprint \"The future worth of Machine A is less than that of Machine B. Thus, Machine A should be selected.\";\nprint \" 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\nThe future worth amount of Machine B in RS. 708815.488\nThe 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": {}
}
]
}
|
