Formula Sheet Cost Index Cost at Time A Cost at Time B Index value at Time A Index value at Time B Power-Sizing Model Cost of A Capacity of A) Cost of B Capacity of B) Learning Curve TN = Tinitial X Nb log (learning curve expressed as a decimal) b = log 2.0 Compound Amount (F/P,i,n) =(1+i)" [F/P, r, n] = em Present Worth (P/F,i,n) = (1 + i)-" [P/F, r, n] = eā¢ Series Compound Amount (1+ i)" - 1 (F/A,i,n) = i [F/A, r, n] = em - 1 er - 1 - Sinking Fund i (A/F,i,n) = (1+ i)" - 1 [A/F, r, n] => er - 1 era -1 Capital Recovery i(1+ i)" (A/P,i,n) = [(1 + i)" - 1 [A/P, T, n] = er" (er - 1) ern - 1 Series Present Worth (1+ i)" - 11 (P/A,i,n) = i(1 + i)" [P/A, T. n] = ern(er - 1) ern - 1 Arithmetic Gradient Uniform Series (A/G.i.n) = [] a+B)-1) (1+ i)" - 1] Arithmetic Gradient Present Worth (P/G,i,n) = (1 + i)" - in - 11 i2(1+ i)" Geometric Series Present Worth When i = g: (P/A,g,i,n) = n(1+ i)-1 When i # g: 1-(1+g)"(1+i)-" (P/A,g,i,n) = i - g - Capitalized Cost A P=4 Effective yearly rate (ia) la =(1++)"-1 la = er - 1, for infinite compounding periods B/C ratio Equivalent worth of net benefits Equivalent worth of costs Joint Probability P(A and B) = P(A) x P(B) Expected value = OutcomeA x P(A) + Outcomes x P(B) + ... Accounting Assets = Liabilities + Equity
Current ratio = Current assets Current liabilities Acid test ratio = Quick assets Total current liabilities Net Profit Ratio = Net sales revenue Net profit Mathematical relationship for market rate: i=i' + f+ i'f Price Index % increase, n = Index (n) - Index(n - 1) Ć 100% Index(n- 1) Interest Coverage Ratio = Total Income Interest Payments Straight Line Depreciation dt = (B-S) N Sum-of-Years'-Digits Depreciation de = SOYD N-t+1 -(B- S) 2 SOYD = N(N +1) Declining-balance depreciation dr = (B-S) N dn = DB(1 - D)"-1 = DBVn-1 BVn = B(1 - D)" = (1 - D) BVn-1 Unit-of-Production Depreciation UOP depreciation = Production for Year (B- S) Total lifetime production