Capital Cost Comparison: Present Worth Analysis

Compares the cost of two equipment options using the concept of present worth. Made by faculty at the University of Colorado Boulder Department of Chemical and Biological Engineering.
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[ThatsRed]

Oh my god, thank you for making this video. I'm an engineering student and we didn't have to take economics at all in school but still will be expected to understand economic concepts when we take out FE Exam after graduation. This video helped much. Thank you! Thank you! Thank you!

[sahanagowda]

Nice description of what P/A is, Thank you so much

[subrataghosh]

Nice explanation of what P/A and P/F is. Thank you.

[mateussaar]

This saved me. All other videos on this really lack

[Hawxye]

Man this has save me on my exam, bless u and thanks.

[tloumokobodi]

Thank you for a great video, helpful, Question, Overhaul 3.5k for B, should it not be accounted for at the end of year 6 and 12?

[TurtleboyTom]

If lifetimes are different, isn’t it better to do an annual worth analysis?

[nativuks]

Thank you very much for the video, which software do you use?

[eMAjooD]

isn't p/f take positive value ? why -22, 000 (p/f, 8%, 8( and 4) ) ?

[JV-iwmy]

Weren't you supposed to account for three salvages in case A? i.e. PW_A=-25000-2000(P/A, 8, 12)-22000[(P/F, 8, 4)+(P/F, 8, 8)]+3000[(P/F, 8, 4)+(P/F, 8, 8)+(P/F, 8, 12)]

[muhamadrazwan]

for case B why for overhaul, just only at 3&9 year only?

[eMAjooD]

in case A, why did you put 12 yrs ? isn't 4 yrs ?

[reynaldocaay]

How to input (P/A, (interest rate), years) in calculator?

[slicric]

where does the 1.08 come from in this equation