MARR

Project Life
n

Capital Investment

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

-$100,000.00

Payback period
*Discounted payback period

Savings

15.0%
15
Cash Flow
($100,000.00)
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00
$25,000.00

NFW=
NPW=

$375,804.11

CEW=

$7,898.29

Project Balance

($100,000.00)
($75,000.00)
($50,000.00)
($25,000.00)
$0.00

$46,184.25

Bal w/Cost of Funds Project Balance*

($100,000.00)
($115,000.00)
($103,500.00)
($90,275.00)
($75,066.25)
($57,576.19)
($37,462.62)
($14,332.01)
$12,268.19
$42,858.42
$78,037.18
$118,492.76
$165,016.67
$218,519.17
$280,047.05
$350,804.11

($90,000.00)
($78,500.00)
($65,275.00)
($50,066.25)
($32,576.19)
($12,462.62)
$10,667.99
$37,268.19
$67,858.42
$103,037.18
$143,492.76
$190,016.67
$243,519.17
$305,047.05
$375,804.11

AOS

6.499

AOS

0.4985

MARR
Project Life
n

Capital Investment

0
1
2
3
4
5

-$120,000.00

Savings

$18,500.00
$25,500.00
$27,980.00
$32,660.00
$40,230.00

15.0%
5
Cash Flow
($120,000.00)
$18,500.00
$25,500.00
$27,980.00
$32,660.00
$40,230.00

Project Balance*
($120,000.00)
($101,500.00)
($76,000.00)
($48,020.00)
($15,360.00)
$24,870.00

NPW=
($27,559.19)
NFW=
($55,431.38)
Payback period
4.38
*Discounted payback period
NO SE RECUPERA LA INVERSIN

Project Balance*

($120,000.00)
($119,500.00)
($111,925.00)
($100,733.75)
($83,183.81)
($55,431.38)

AOS
UPERA LA INVERSIN

MARR
Project Life
n

Capital Investment

0
1
2
3
4
5

-$270,000.00

$75,000.00

Revenue Increase

$90,000.00
$90,000.00
$90,000.00
$90,000.00
$90,000.00
NPW =

12.0%
5
Cash Flow
($270,000.00)
$90,000.00
$90,000.00
$90,000.00
$90,000.00
$165,000.00
$96,986.87

Project Balance

>0, SE ACEPTA EL PROYECTO

12.0%
25
n
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Capital Investment

Rental

O&M

$50,000.00

$250,000.00
$250,000.00
$250,000.00
$250,000.00
$250,000.00
$275,000.00
$275,000.00
$275,000.00
$275,000.00
$275,000.00
$302,500.00
$302,500.00
$302,500.00
$302,500.00
$302,500.00
$332,750.00
$332,750.00
$332,750.00
$332,750.00
$332,750.00
$366,025.00
$366,025.00
$366,025.00
$366,025.00
$366,025.00

-$85,000.00
-$90,000.00
-$95,000.00
-$100,000.00
-$105,000.00
-$110,000.00
-$115,000.00
-$120,000.00
-$125,000.00
-$130,000.00
-$135,000.00
-$140,000.00
-$145,000.00
-$150,000.00
-$155,000.00
-$160,000.00
-$165,000.00
-$170,000.00
-$175,000.00
-$180,000.00
-$185,000.00
-$190,000.00
-$195,000.00
-$200,000.00
-$205,000.00
PW=

Cash Flow

$165,000.00
$160,000.00
$155,000.00
$150,000.00
$145,000.00
$165,000.00
$160,000.00
$155,000.00
$150,000.00
$145,000.00
$167,500.00
$162,500.00
$157,500.00
$152,500.00
$147,500.00
$172,750.00
$167,750.00
$162,750.00
$157,750.00
$152,750.00
$181,025.00
$176,025.00
$171,025.00
$166,025.00
$211,025.00
$1,241,461.22
$1,241,461.22

Project Balance

$165,000.00
$344,800.00
$541,176.00
$756,117.12
$991,851.17
$1,275,873.32
$1,588,978.11
$1,934,655.49
$2,316,814.15
$2,739,831.84
$3,236,111.66
$3,786,945.06
$4,398,878.47
$5,079,243.89
$5,836,253.15
$6,709,353.53
$7,682,225.96
$8,766,843.07
$9,976,614.24
$11,326,557.95
$12,866,769.90
$14,586,807.29
$16,508,249.17
$18,655,264.07
$21,104,920.75
ES LO QUE ESTARA DISPUESTO A PAGAR PARA TENER UNA MARR=

12%

18.0%
10

MARR
Project Life
n

Capital Investment

0
1
2
3
4
5
6
7
8
9
10

-$3,500,000.00

$200,000.00

Savings

$1,550,000.00
$1,550,000.00
$1,550,000.00
$1,550,000.00
$1,550,000.00
$1,550,000.00
$1,550,000.00
$1,550,000.00
$1,550,000.00
$1,550,000.00

O&M

Cash Flow

-$500,000.00
-$500,000.00
-$500,000.00
-$500,000.00
-$500,000.00
-$500,000.00
-$500,000.00
-$500,000.00
-$500,000.00
-$500,000.00
NPW =
NFW=

($3,500,000.00)
$1,050,000.00
$1,050,000.00
$1,050,000.00
$1,050,000.00
$1,050,000.00
$1,050,000.00
$1,050,000.00
$1,050,000.00
$1,050,000.00
$1,250,000.00
$1,257,003.50
$6,578,949.63

Project Balance
($3,500,000.00)
($3,080,000.00)
($2,584,400.00)
($1,999,592.00)
($1,309,518.56)
($495,231.90)
$465,626.36
$1,599,439.10
$2,937,338.14
$4,516,059.00
$6,578,949.63
> 0 se ACEPTA
> 0 se ACEPTA

MARR
Project Life
MKT SHARE
n
0
1
2
3
4

Capital Investment

Revenues

O&M

$1,200,000.00
$900,000.00
$675,000.00
$506,250.00

15.0%
4
-25%

Cash Flow

$1,200,000.00
$900,000.00
$675,000.00
$506,250.00
PW =

$2,457,281.10

PER YEAR

Project Balance

PRECIO MNIMO SI SE EXIGE UNA MARR DE 15% AL NEGOCIO

MARR
Project Life
n

Capital Investment

0
1
2
3
4
5
6
7
8
9
10

-$20,000.00

$0.00

Revenues

$6,000.00
$6,000.00
$6,000.00
$6,000.00
$6,000.00
$6,000.00
$6,000.00
$6,000.00
$6,000.00
$6,000.00

O&M

-$1,000.00
-$1,000.00
-$1,000.00
-$1,000.00
-$1,000.00
-$1,000.00
-$1,000.00
-$1,000.00
-$1,000.00
-$1,000.00

NFW =
Discounted payback period =

15.0%
10
Cash Flow
($20,000.00)
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$5,000.00
$20,607.44
6.50

Project Balance
($20,000.00)
($18,000.00)
($15,700.00)
($13,055.00)
($10,013.25)
($6,515.24)
($2,492.52)
$2,133.60
$7,453.64
$13,571.68
$20,607.44

years

0.499

MARR
Project Life
n

0
1
2
3
4
5
6
7
8
9
10
10 to

Capital Investment

O&M
First 10 Years

O&M
after 10 years

-$100,000.00
-$100,000.00
-$100,000.00
-$100,000.00
-$100,000.00
-$130,000.00
-$130,000.00
-$130,000.00
-$130,000.00
-$130,000.00
-$150,000.00

13.0%
10
Net
Cash Flows

$351,723.13

$248,171.59

$339,909.63
CEW=
AE=

$939,804.35
$122,174.57

Project
Balance

(a)
(b)

MARR
Project Life
n

0
1
2
3
4
5

PW (5)=
AE =
CE =

15.0%
5
Net
Cash Flows
($221,685.20)
$100,000.00
$100,000.00
$40,000.00
$40,000.00
$20,000.00
$221,685.20
$66,132.14
$440,880.96

101.1% =MARR en 5 AOS:

Project
Balance
($221,685.20)
($154,937.98)
($78,178.68)
($49,905.48)
($17,391.30)
($0.00)

$445,888.13

$66,132.14
$440,880.96

MARR
Project Life

12%
10

Model A

NPW=

-$
-$
-$
$
$
$
$
$
$
$
$

1,000.00
1,300.00
435.00
875.00
875.00
1,475.00
1,775.00
675.00
675.00
375.00
660.00

1,333.31

Model B
($2,800.00)
($660.00)
820.00
820.00
1,180.00
$1,880.00
1,600.00
880.00
780.00
$380.00
840.00

0
1
2
3
4
5
6
7
8
9
10
$

1,595.94 ES MEJOR EL MODELO B. AMBOS SON ACEPTABLES

B. AMBOS SON ACEPTABLES

Comparing Two Different Motors - Life-Cycle-Cost Analysis

First
Motor
0.7457
Output power (hp)
Output power (KW)
Operating hours per year
Efficiency (%)
kWh/yr Output
Initial cost ($)
Salvage value ($)
Service life (year)
Utility rate ($/kWh)
MARR (%)

Capital cost ($/year) CR

Energy cost ($/year)
Total Equ. annual cost
Cost per kWh
PW

10
7.457
2,000
85%
14,914.00
$
(1,200) $
50
15
0.09
8%

Second

Motor

Operating
Hours

10
7.457
2,000
90%
14,914.00
(1,600)
100
15
0.09
8%

0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000

First
Motor
$138.35
$533.14
$927.92
$1,322.70
$1,717.48
$2,112.27
$2,507.05
$2,901.83
$3,296.61
$3,691.40
$4,086.18

-$138.35
-$183.24
1,579.13 -$
1,491.40
-$1,717.48
-$1,674.64
$
0.1152 $
0.1123
($14,700.76)
($14,334.08)

-$

$4,500.00
$4,000.00
$3,500.00
$3,000.00
$2,500.00
$2,000.00
$1,500.00
$1,000.00
$500.00
$0.00

First Motor

Second Motor

Second
Motor
$183.24
$556.09
$928.94
$1,301.79
$1,674.64
$2,047.49
$2,420.34
$2,793.19
$3,166.04
$3,538.89
$3,911.74

Kendall
Period

First Cost

O&M Cost

Net Cash Flows

Interest Rate
0
1
2
3
4
5
6
7
8
9
10

($25,000.00)

3,000.00

($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)

($25,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($11,000.00)
($8,000.00)

12.0%
Project Life
10.00

PRESENT WORTH AT PERIOD 0

($86,186.53)

ANNUAL EQUIVALENT WORTH OVER PROJECT PERIOD

($15,253.65)

Toyota
Period

First Cost

O&M Cost

Net Cash Flows

Interest Rate
0
1
2
3
4
5
6
7
8
9
10

($32,000.00)

1,927.59

($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)

($32,000.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($9,700.00)
($7,772.41)

12.0%
Project Life
10.00

USANDO BUSCAR OBJETIVO

NET PRESENT WORTH AT PERIOD 0

($86,186.53)

ANNUAL EQUIVALENT WORTH OVER PROJECT PERIOD

($15,253.65)

Alternative A
Period

Investment

O&M Cost

Net Cash Flows

Interest Rate
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

($30.00)

$0.85

($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)

NET PRESENT WORTH AT PERIOD 0

ANNUAL EQUIVALENT WORTH OVER PROJECT PERIOD

($30.00)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
($0.40)
$0.45

15.0%
Project Life
25.00

($32.56)
($5.04)

Alternative B
Period
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Investment

O&M Cost

($10.00)

($18.00)

($12.00)

$1.50

($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.35)
($0.35)
($0.35)
($0.35)
($0.35)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)

NET PRESENT WORTH AT PERIOD 0

ANNUAL EQUIVALENT WORTH OVER PROJECT PERIOD

Net Cash Flows

($10.00)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($0.25)
($18.25)
($0.35)
($0.35)
($0.35)
($0.35)
($12.35)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
($0.45)
$1.05

Interest Rate
15.0%
Project Life
25.00

($17.70) Se escogera la alternativa B

($2.74)

Contract for

6 years

Option 1
Process Device A

Period

Investment

O&M Cost

Net Cash Flows

Period

Interest Rate
0
1
2
3
4
5
6

($100,000.00)

10,000.00

($100,000.00)
($60,000.00) ($60,000.00)
($60,000.00) ($60,000.00)
($60,000.00) ($60,000.00)
($60,000.00) ($50,000.00)
($100,000.00) ($100,000.00)
($100,000.00) ($100,000.00)
PW=

12.0%
Project Life
6.00
Option 3
Option 3

0
1
2
3
4
5
6

-$383,291.58

Asumiendo que la Opcin

H&H los aos 5 y 6, Opci

Option 2

Option 3

Process Device B

Investment

Subcontract H&H Chemical Co.

O&M Cost

Net Cash Flows

Period
Investment

Interest Rate
($150,000.00)

30,000.00

($50,000.00)
($50,000.00)
($50,000.00)
($50,000.00)
($50,000.00)
($50,000.00)

($150,000.00)
($50,000.00)
($50,000.00)
($50,000.00)
($50,000.00)
($50,000.00)
($20,000.00)

PW=

-$340,371.43

12.0%
Project Life
6.00

Asumiendo que la Opcin 1 se puede subcontratar con

H&H los aos 5 y 6, Opcin 2 parece ser la mejor

0
1
2
3
4
5
6

Option 3
Subcontract H&H Chemical Co.

O&M Cost

Net Cash Flows

Interest Rate
($100,000.00)
($100,000.00)
($100,000.00)
($100,000.00)
($100,000.00)
($100,000.00)

$0.00
($100,000.00)
($100,000.00)
($100,000.00)
($100,000.00)
($100,000.00)
($100,000.00)

PW=

-$411,140.73

12.0%
Project Life
6.00