Frequently Asked Questions...
Determine the equivalent annual cost? Please Help?
Rolled ball screws are suitable for high-precision applications such as water jet cutting. Their total manufacturing cost is expected to decrease because of increased productivity, as shown in the table below. Determine the equivalent annual cost at an interest rate of 8% per year.
table: http://i7.photobucket.com/albums/y292/meghrie/EngEconQ27.jpg
How do I solve this problem? Any help is appreciated, thank you in advance!
P.S.: I do not know how to use a spreadsheet so a manual solution is preferred.
Answer:
The discounting formula that you need is:
1/(1.08)^t where t is the year
If I remember my studies correctly, the EAC involves you totaling all discounted costs by their appropriate year over the 8 year period.
i.e. 200/1.08
1.95/1.08^2 = 1.95/1.1664
....
If you intend on doing it by hand, it would take you about 5 minutes. If you did this on a spreadsheet, it should have taken you 30 seconds, with the right formulae and table.
Hope this helps
Precision I7
Dell Precision M6600 Mobile Workstation i7-2720QM Review | Dell Precision M6600 Mobile Workstation
Here are a list of other products on PC Ware, come check these out:
















































































