By Steven G. Penoncello
IntroductionThermal power platforms layout and AnalysisSoftwareThermal strength approach TopicsUnits and Unit SystemsThermophysical PropertiesEngineering DesignEngineering EconomicsIntroductionCommon Engineering Economics NomenclatureEconomic research software: the money move DiagramTime worth of MoneyTime worth of cash ExamplesUsing software program to Calculate curiosity FactorsEconomic selection MakingDepreciation and TaxesProblemsAnalysis of Thermal strength SystemsIntroductionNomenclatureThermophysical homes of SubstancesSuggested Thermal power platforms research ProcedureConserved and Balanced Quantities. Read more...
summary: IntroductionThermal power platforms layout and AnalysisSoftwareThermal strength procedure TopicsUnits and Unit SystemsThermophysical PropertiesEngineering DesignEngineering EconomicsIntroductionCommon Engineering Economics NomenclatureEconomic research instrument: the money movement DiagramTime price of MoneyTime price of cash ExamplesUsing software program to Calculate curiosity FactorsEconomic choice MakingDepreciation and TaxesProblemsAnalysis of Thermal strength SystemsIntroductionNomenclatureThermophysical homes of SubstancesSuggested Thermal strength structures research ProcedureConserved and Balanced amounts
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Extra info for Thermal Energy Systems : Design and Analysis
Many banks offer a payment schedule known as an amortization schedule. The following example shows how to develop an amortization schedule. 2. 37. 19 This process repeats for subsequent months. For any time period m, during the loan period, i I m = Pm − 1 Pm = A − I m Bal m = Pm − 1 − Pm 12 This type of calculation can be easily adapted to a spreadsheet. The various columns can be totaled to determine the total payments made and the interest paid over the life of the loan. 3 is an abridged table that shows the resulting amortization schedule for this example.
However, the magnitude of the series increases linearly as time goes on. In addition, notice that the series starts at the end of the second period. The value G in this figure is called the gradient. It represents the linear increase in the series over time. 5 Cash flow diagram showing the equivalence of a uniform linearly increasing series and a present value. 27 Engineering Economics The term in brackets is the interest factor known as the gradient present worth factor. However, this form of the factor is not very convenient to work with.
The details of how depreciation is calculated using ACRS and MACRS are detailed in IRS Publications 534 (ACRS) and 946 (MACRS). The details of these methods are beyond the scope of this chapter and are often covered in most textbooks on engineering economy. However, the methods are accelerated depreciation schemes that give the business a better tax advantage early in the depreciation scenario with decreasing depreciation as time goes on. The following sections show two depreciation schemes: straight line depreciation (SLD) and an accelerated scheme known as the sum of the years’ digits (SYD) depreciation.