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

P=
1
2
3
4
P=
1
2
3
4
P=
1
2
3
4
P=
1
2
3
4

12%
4
-1000 $
800
700
600
500
-1000
800
700
600
500
-1000
800
700
600
500
-1000
800
700
600
500

1,017.15

0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
AEW

-12500
-5000
-5000
-3000
-12500
-5000
-5000
-3000
-12500
-5000
-5000
-3000

1,017.15

1,017.15

1,017.15

1,017.15

$334.88
$2,790.67

-12500
-5000
-5000
-3000

2335.45

Valor de Capitalizacion equivalente

SEGMENT
Compact car
Midsize car
Sports car
Near luxury car
Luxury car
Minivan
Subcompact
Compact SUV
Full size SUV
Compact truck
Full size truck

BEST MODELS
Mini Cooper
Volkswagen Passat
Porsche 911
BMW 3 Series
Mercedes CLK
Honda Odyssey
Honda CR-V
Acura MDX
Toyota Sequoia
Toyota Tacoma
Toyota Tundra

Given:
I = $20,000
S = $4,000
N = 5 years
i = 10%
Find: See if an
annual revenue
of $5,000 is large
enough to cover
both the capital
and operating

ASKING
PRICE
$19,800
$28,872
$87,500
$39,257
$51,275
$26,876
$20,540
$37,500
$37,842
$21,200
$25,653

both the capital

and operating
costs
$35,560

$37,360

$31,850

$34,400

0
1

$76,000

Year
1

3,500
hours

Year
2

4,000
hours

Year
3

1,700
hours

Year
4

2,800
hours

PRICE AFTER 3 YEARS

$12,078
$15,013
$48,125
$20,806
$30,765
$15,051
$10,681
$21,375
$18,921
$10,812
$13,083

P=
VT=
CR=

-$4,620.76
-500
-$5,120.76

-$

6%
3
-$19,800
12078
3,614

ar

$34,400

0
1
2
3
4
AEW=

12%
4
-76000
35560
37360
31850
34400
30,065.19
$9,898.49 Horas/aos equival=

0.076923077
2,800
hours

AOS
SE VENDE