Engineering Economics2D
Future and Annual Worth Analysis - Theory & Concepts - A W F W Visualizer
Comparing alternatives using Future Worth, Annual Worth methods, and Capital Recovery.
Open the complete lessonEquivalence Visualizer
Initial Cost (P)10,000 $
Annual Benefit (A)3,000 $ / yr
Salvage Value (S)2,000 $
Life (n)5 yrs
Interest Rate (MARR)10 %
Total PW
$2,614
Total AW
$690
Total FW
$4,210
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Note that PW, AW, and FW all lead to the same accept/reject decision (positive vs negative).