Table Of ContentAbbreviations and Notation Summary
CHAPTER 4
APR annualpercentagerate(nominalinterest)
EOY endofyear
f¯ a geometric change from one time period to the next in cash flows
orequivalentvalues
i effectiveinterestrateperinterestperiod
r nominalinterestrateperperiod(usuallyayear)
CHAPTER 5
AW(i%) equivalent uniform annual worth, computed at i% interest, of one
ormorecashflows
CR(i%) equivalentannualcostofcapitalrecovery,computedati%interest
CW(i%) capitalizedworth(apresentequivalent),computedati%interest
EUAC(i%) equivalentuniformannualcost,calculatedati%interest
FW(i%) future equivalent worth, calculated at i% interest, of one or more
cashflows
IRR internalrateofreturn,alsodesignatedi%
MARR minimumattractiverateofreturn
N lengthofthestudyperiod(usuallyyears)
PW(i%) presentequivalentworth,computedati%interest,ofoneormorecash
flows
CHAPTER 6
(cid:31)(B−A) incremental net cash flow (difference) calculated from the cash flow
of Alternative B minus the cash flow of Alternative A (read: delta B
minusA)
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CHAPTER 7
ATCF after-taxcashflow
BTCF before-taxcashflow
EVA economicvalueadded
MACRS modifiedacceleratedcostrecoverysystem
NOPAT netoperatingprofitaftertaxes
WACC tax-adjustedweightedaveragecostofcapital
CHAPTER 8
A$ actual(current)dollars
f generalinflationrate
R$ real(constant)dollars
CHAPTER 9
EUAC equivalentuniformannualcost
TC total(marginal)costforyeark
k
CHAPTER 12
E(X) meanofarandomvariable
f(x) probabilitydensityfunctionofacontinuousrandomvariable
p(x) probabilitymassfunctionofadiscreterandomvariable
SD(X) standarddeviationofarandomvariable
V(X) varianceofarandomvariable
CHAPTER 13
CAPM capitalassetpricingmodel
R risk-freerateofreturn
F
SML securitymarketline
X binarydecisionvariableincapitalallocationproblems
j
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Resources for Success
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ENGINEERING
ECONOMY
Seventeenth Edition
Global Edition
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E E
NGINEERING CONOMY
SEVENTEENTH EDITION
GLOBAL EDITION
WILLIAM G. SULLIVAN ELIN M. WICKS C. PATRICK KOELLING
VirginiaPolytechnicInstitute AbacusAccounting,LLC VirginiaPolytechnicInstitute
andStateUniversity andStateUniversity
330HudsonStreet,NY,NY10013
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