Capitalized Value - Engineering Economics Lightboard
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- Опубликовано: 29 мар 2020
- Engineering Economics, Capitalized value, perpetuity, infinite annuity, infinite payments, infinite series of payments, present value of a perpetuity; present worth of a perpetuity; net present worth of a perpetuity
This guy just amazingly explaining the topic which my teacher struggled to make understand me, wonderful
Thank you for the kind words!
For me, you are the father of engineering economics.
Thank you for the wonderful comment!
4:34 Capitalised cost
this was amazing, thank you for your efforts
You're welcome!
By far! The best engineering economics course EVER
Thanks! Awesome comment, I'm glad you like my Channel! Good luck in your course.
You are welcome, Thank you! Yup I need luck, I'm taking the FE test in a month. I wonder if you teach any other engineering subjects ?
I do teach other subjects but not on RUclips...YET! I uploaded 2 Geotechnical Engineering videos to this Channel - go to my main channel page and look for the Geotech Playlist. Hopefully more to come in the next year. Try "enGENIEer" on RUclips for some other Exam prep info ruclips.net/user/enGENIEerplaylists Good luck on your Exam!
Thank you so much! I will look into it and I'll be on the lookout of all your new videos :)
@@EngineeringEconomicsGuy I'm an Electrical Engineer :)
Impressive presentation!
Thanks! I hope it was instructive.
Thank you so much sir. Yo has helped me a lot
You are most welcome!
For the 15-yr 'cycle' cost can you also use the present worth factor to find the present worth value or do you have to use the capitalized value equation because it involves annuities?
Good question. Because the 15 year cycle cost goes on 'forever' you can't use the standard present worth factor; you need to use the 'capitalized value' formula. Notice that I showed 2 ways of doing it!
@@EngineeringEconomicsGuy Oh I see, thanks for the help and I hope you have a nice day! Your lectures are the best!
Thank you!!
Thank you sir
You are most welcome!
do you have any video for comparing alternatives question?
Yes, ruclips.net/video/g1hI58w_FtI/видео.html
This link takes you to a video using Incremental IRR for comparing projects.
9:50
12:38
at 1：30,isnt the P supposed to be negative?... since the money is bieng spent not earned.
OK i get it ,its positive because the school is yearly bieng Given the money,in general ,the University is receiving $ P yearly ,then it chanels $1,000 to a yearly scholarship at an interest rate of 10% .
(meaning $1000 is just 10% of the P(received money by University)
may you please....
I think you've got it! Good luck in your course!!
what if the annual cost is different per year? would you add it all?
Good question. If the annual cash flows are not a constant amount then you can't use the idea of a 'perpetuity' (meaning a repeating amount that goes on "forever"). If the dollar-amounts are different each year, the best you can do is bring each individual cash flow back to the present (using the P/F compound interest factor). You could do this for each cash flow that you know. Excel has the "NPV" function that would come in handy for this task! I have another video explaining that. ruclips.net/video/NcO7LyJE8bA/видео.html But, in general, if the annual cash flows are all different values, then you can't apply the calculation shown in this video. Thanks for the question - good luck in your course!
By the way, you definitely can't "add" the costs like you mentioned in your original question. I tell my students that the 'golden rule' of engineering economics (and finance) is: You can't add dollar amounts that occur at different points in time! You must always use the 'time value of money' compound interest factors when performing calculations!