Construction Engineering & Management - Vol 1 | 9. Uniform Series Capital Recovery Factor by Abraham | Learn Smarter
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9. Uniform Series Capital Recovery Factor

The chapter explores key concepts related to financial valuation methods in engineering, emphasizing the importance of timing in cash flows and how various compounding factors can be applied to convert cash flows to equivalent values. It discusses the Uniform Series Capital Recovery Factor and Uniform Series Present Worth Factor, detailing their applications in estimating loan repayment schedules and ownership costs. Additionally, it covers methods for converting the purchase price of equipment into annualized costs, concluding with practical examples of these concepts in action.

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Sections

  • 1

    Uniform Series Capital Recovery Factor

    The uniform series capital recovery factor helps to determine loan repayment schedules and converts capital costs into equivalent uniform cash flows.

    Learning Practice

  • 1.1

    Applications Of Uniform Series Capital Recovery Factor

    This section discusses the applications of the Uniform Series Capital Recovery Factor in determining loan repayment schedules and converting purchase prices into equivalent uniform annual cash flows.

    Learning Practice

  • 1.2

    Estimating Equivalent Uniform Annual Cost

    This section focuses on using the uniform series capital recovery factor to estimate the annual costs associated with equipment ownership and operation.

    Learning Practice

  • 2

    Uniform Series Present Worth Factor

    The Uniform Series Present Worth Factor (USPW Factor) is a crucial concept used for determining the present value of uniform cash flows, which can facilitate various financial calculations such as loan repayments and equipment cost estimates.

    Learning Practice

  • 2.1

    Determining Present Worth Of Known Uniform Series

    This section discusses the uniform series capital recovery factor and the uniform series present worth factor to calculate equivalent uniform cash flows and repayment schedules.

    Learning Practice

  • 2.2

    Example Calculation Of Present Worth

    This section discusses the application of the uniform series capital recovery factor in capital recovery and cost estimation.

    Learning Practice

  • 3

    Summary Of Compounding Factors

    This section discusses the applications of the Uniform Series Capital Recovery Factor in determining loan repayment schedules and converting purchase prices into equivalent uniform cash flows over the life of equipment.

    Learning Practice

  • 3.1

    Single Payment Compounding Amount Factor

    This section discusses the Uniform Series Capital Recovery Factor and its applications in capital recovery and loan repayment schedules.

    Learning Practice

  • 3.2

    Single Payment Present Worth Factor

    The Single Payment Present Worth Factor is crucial for converting future cash flows into present value, facilitating the assessment of equipment and capital costs.

    Learning Practice

  • 3.3

    Uniform Series Payments Factors

    This section discusses the uniform series capital recovery factor and its applications in calculating loan repayment schedules and equivalent uniform cash flows.

    Learning Practice

  • 3.4

    Inverse Factors

    This section introduces the uniform series capital recovery factor and its applications in estimating loan repayment schedules and equivalent annual costs for equipment.

    Learning Practice

  • 4

    Estimating Ownership Cost Using Time Value Concepts

    This section explains how to estimate ownership costs of equipment by employing time value concepts, particularly through the capital recovery factor and sinking fund method.

    Learning Practice

  • 4.1

    Input Data For Ownership Cost Calculation

    This section discusses the application of the uniform series capital recovery factor in estimating ownership costs associated with equipment.

    Learning Practice

  • 4.2

    Using Uniform Series Capital Recovery Factor

    This section introduces the uniform series capital recovery factor, emphasizing its applications in calculating loan repayments, converting purchase prices into uniform cash flows, and estimating ownership costs for equipment.

    Learning Practice

  • 4.3

    Calculating Annualized Purchase Price

    This section discusses the calculation of the annualized purchase price of equipment using the uniform series capital recovery factor.

    Learning Practice

  • 4.4

    Uniform Series Sinking Fund Factor

    The section discusses the uniform series sinking fund factor, its applications in calculating annual payments for known future sums, and how it assists in estimating ownership costs of equipment.

    Learning Practice

  • 4.5

    Calculating Annualized Salvage Value

    This section discusses the importance of uniform series capital recovery factors in determining loan repayment schedules and converting purchase prices into equivalent uniform annual costs.

    Learning Practice

  • 4.6

    Calculating Hourly Depreciation

    This section outlines the methods for calculating hourly depreciation using the uniform series capital recovery factor.

    Learning Practice

  • 4.7

    Calculating Other Components Of Ownership Cost

    This section explains the methods for calculating ownership cost components, such as loan repayments, capital recovery, and uniform cash flows related to equipment.

    Learning Practice

  • 5

    Summary Of Lecture

    This section discusses the applications of the uniform series capital recovery factor and uniform series present worth factor in equipment cost estimation and loan repayment schedules.

    Learning Practice

  • 5.1

    Key Points On Time Value Method

    This section discusses the applications of the uniform series capital recovery factor in estimating loan repayments and equivalent uniform cash flows for equipment investments.

    Learning Practice

  • 5.2

    Future Salvage Value And Sinking Fund Factor

    This section covers the calculations involving future salvage value and the sinking fund factor, essential for estimating the annual costs associated with equipment ownership.

    Learning Practice

  • 5.3

    Conclusion

    This section summarizes the importance of uniform series factors in financial calculations related to equipment costs and capital recovery.

    Learning Practice

  • 6

    References

    This section discusses the applications of uniform series capital recovery factors and present worth factors in financial calculations related to equipment economics.

    Learning Practice

  • 7

    Next Lecture Preview

    The uniform series capital recovery factor is crucial for determining loan repayment schedules and estimating the annualized cost of owning equipment.

    Learning Practice

  • 7.1

    Overview Of Equipment Cost Estimation

    This section discusses the uniform series capital recovery factor and its applications in estimating the costs associated with equipment, including loan repayment and annualized capital costs.

    Learning Practice

References

3 b.pdf

Class Notes

Memorization

What we have learnt

  • Understanding of the Unifor...
  • Methods for estimating the ...
  • Significance of converting ...

Final Test

Revision Tests