Chapter #2 Part 1 of 2 video

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Summary

This lecture introduces engineering economic factors, focusing on how time and interest rates affect money. It covers single amount factors, uniform series present worth factors, capital recovery, sinking fund factors, and methods for handling untabulated values.

Highlights

Introduction to Engineering Economic Factors00:00:00

Overview of Chapter 2, introducing various engineering economic factors such as single amount factors, uniform series present worth factors, capital recovery, sinking fund factors, and gradient series.

Single Amount Factors: F given P and P given F00:01:25

Explanation of single payment compound amount factors (F/P) and present worth factors (P/F). Includes formulas, cash flow diagram interpretations, and how to utilize standard interest tables.

Practical Examples of Single Amount Factors00:06:35

Worked examples demonstrating how to solve problems using factor formulas, interest tables, and spreadsheet functions for future value and present worth scenarios.

Uniform Series Present Worth and Capital Recovery00:16:02

Introduction to uniform series present worth (P/A) and capital recovery (A/P) factors, detailing their use in calculating equivalent values for a series of equal payments.

Sinking Fund and Uniform Series Compound Amount Factors00:23:08

Discussion of the sinking fund factor (A/F) and the uniform series compound amount factor (F/A), including their formulas, applications, and corresponding spreadsheet functions.

Factoring for Untabulated Interest and Periods00:28:40

Methods for finding factor values when exact interest (i) or period (n) values are not in the standard tables, comparing formulaic calculations, spreadsheet functions, and linear interpolation.

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