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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Factors: How Time and Interest Affect Money

Chapter Overview

Formulas and factors derived and applied in this chapter perform equivalence calculations for present, future, annual, and gradient cash flows. Capability in using these formulas and their standard notation manually and with spreadsheets is critical to complete an engineering economy study. Using these formulas and spreadsheet functions, you can convert single cash flows into uniform cash flows, gradients into present worths, and much more. You can solve for rate of return i or time n. A thorough understanding of how to manipulate cash flows using the material in this chapter will help you address financial questions in professional practice as well as in everyday living.

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