Present Worth and Annual Worth Explained Engineering Economics Live Class Recording

Engineering Economics, Video describing and explaining Present Worth and Annual Worth analysis. Equivalence and the time value of money. Minimum attractive rate of return, minimum acceptable rate of return, MARR, annuity, NPV, discounted cash flows, equivalent annual cost, comparing projects with unequal lives, evaluating investments. A good, interactive virtual class discussion.

[vayefendimneymis]

Such a good lecturer who tries to actually explain those numbers and don't make his students memorize random formulas.

[Lexyvil]

Thank you very much for explaining that Annual Worth is needed for projects of different life expectancies at 19:34! That's something my prof did not made clear during my course.

[Patsfan-kljk]

You've taught me more than my Prof. Thank you, sir!

[OGTennyson]

Who else is here coz they got engineering economics exams tomorrow and you didn't pay attention the whole semester😭😂

[annie]

This is so helpful, thank you for explain what everything mean.

[Dawn.]

Thank you Sir. Love and prayers from Kerala, India 🙂

[littlecorporal]

Thank you sir for a very clear explanation. You really help me for my exam

[taekwondotime]

*QUESTION:* I think you mentioned that the advantage of the *Annual Worth (AW) method* is that it can be used on problems with unequal service lives, but the textbook has an example about concrete bleachers vs wood bleachers. The concrete bleachers have a 90-year life, and the wood bleachers have a 30-year life. Now, it would be nice if we could do the AW method at 90 years for the concrete and at 30 years for the wood, but that's not what the textbook does. The textbook uses the *repeated lives method* to repeat the wood bleachers 3x over so that both projects are being compared at 90 years of life. So even with the AW method, the textbook seems to claim that both projects must have equal service lives to be compared. But then, the textbook goes on to say that we can ignore the repeated lives and study period methods if it can be assumed that the project repeats indefinitely. To me, when the bleachers wear out, new ones will be built to replace them. In theory, it would be a project that repeats indefinitely. Why can't I compare the concrete bleachers at 90 years to the wood bleachers at 30 years using the AW method? Am I missing something?

[anirudhk]

Thank you sir for making me understand the concept clearly, can you please suggest the textbook for solving more problems.

[Pequod_LZ]

Wow you explain it so clearly and even give 'what if' examples.

Another cool thing you could've done was to redraw the -10k present into a -2163.2 annuity to help visualize the annual worth better.

[kelvinondang]

Hi Sir, I'm Kelvin Ondang Civil Engineering student from Indonesia. Thank you very much for your video which gave me more insight into engineering economics.
I love the way you explain and I want to continue learning from you. But my basic is still lacking to continue, can you tell me the order of your video from start to newest that I can watch sequentially?

[johnnyloaiza]

Hi thank you for you video. Is there a table to Get (P/A). Could you make a video to explain how to compute that?

[SoulfulReflections]

Would it be accurate to generally assume that present worth, annual worth, and future worth typically converge to a similar conclusion when assessing the feasibility of a project??

[akashshaw]

We have to multiply those 4.6229 with -8k?

[rcaone]

First thank you a lot professor, I still have a little misunderstanding regarding the PW :
If for example the annuity will start 3 years from now and last for 6 years is the n will be 9 here or remains 6 ?

[BlaireOphelia]

Hello, so the basic principle for cash flow is just money in = money out?

[kylefoster]

can i find you anywhere else other than youtube?

[melvineuro]

What if the problem includes salvage values

[OMARALI-kqwf]

Dear Dr engineering economy guy do you have a video explaining The topic of ( Comparing different projects using repeatability ) ?

[dannysigit]

Bagus mister, saya harap akan ada sedikit ringkasan mengenai topik ini :)