Equivalent Annual Cost Example 2 - Engineering Economics Lightboard

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Engineering Economics, Equivalent annual cost example problem; EAC; EUAC; economic life; capital cost, operating and maintenance cost; equivalent uniform annual cost; capital recovery formula; economic life, minimum equivalent annual cost; EAC; EUAC; EAC capital; EAC O&M; EUAC capital; EUAC O&M
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Thanks for these videos, you've explained this concept much more clearly than my PE prep materials!

sugatooth
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Hello . Thanks for explaining this concept. You made it easier than I actually thought. It all became a punch of AW analysis other than the decision making strategy. Thanks again. I have a quick question, For the EAC O&M why don't we use arithmetic gradient calculation instead. taking G=50K A=340K+50K(G/A, MARR, 3) A=386, 828 . that will give us a constant Annual value for the Costs, won't it? OR is it because am setting am kinda stretching it more than it should have been when I do it for every year? I actually tried that when I paused the video first and ended up different values but don't know how. Should we always use the format in the video without G or g? please clarify THANKS IN BOLD!

ibnuahmedbare
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Best way to explain 😍 loved the way you teach
Student from NEPAL

kripaamgai
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Hello, why the O&M Cost of 340K didn't start at year 0?

maximeabdulkarim
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. Compare the machines below using present worth analysis (12 Pts)
Machine A Machine B
First cost 25, 000 30, 0000
Annual cost 10, 000 10, 000
Salvage value 7, 000 4, 000
Life, year 10 10
Interest 11%/yr 11% /yr

dagimdemissie