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Engineering Economics2D

Present Worth Analysis - Theory & Concepts

Evaluating alternatives using the Present Worth method, Least Common Multiple (LCM), and Capitalized Cost.

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Present Worth Analysis Simulator

Initial Cost ($): 10000

Annual Benefit ($): 3000

Salvage Value ($): 2000

Life (years): 5

MARR (%): 8

Total Present Worth (PW)

$3339.30

Project Justified (PW ≥ 0)

PW = -P + A(P/A, i, n) + S(P/F, i, n)

Cumulative Present Worth over Time

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Introduction to Engineering Economics - Theory & Concepts Annuities and Gradients - Theory & Concepts Future and Annual Worth Analysis - Theory & Concepts - A W F W Visualizer Rate of Return Analysis - Theory & Concepts - I R R Visualizer