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Combining Factors


Most estimated cash flow series do not fit exactly the series for which the factors and equations in Chapter 2 were developed. Therefore, it is necessary to combine the equations. For a given sequence of cash flows, there are usually several correct ways to determine the equivalent present worth P, future worth F, or annual worth A. This chapter explains how to combine the engineering economy factors to address more complex situations involving shifted uniform series and gradient series. Spreadsheet functions are used to speedup the computations.









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