1. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-1 Determination of the MARR Based on the Opportunity Cost Viewpoint (A popular measure of annual rate of profit is “Internal Rate of Return,” discussed later in this chapter.)

2. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-2 PW of $1,000 Received at the End of Year k at an Interest Rate of i% per Year

3. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 5-1 Calculation of Equivalent Annual CR Amount

4. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-3 Plot of PW versus Interest Rate

5. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-4 Investment-Balance Diagram Showing IRR

6. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-5 Use of Linear Interpolation to Find the Approximation of IRR for Example 5-12

7. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-6 Spreadsheet Solution, Example 5-12

8. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-7 Spreadsheet Solution, Example 5-13 (a) Direct Computation of IRR

9. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-7 (continued) Spreadsheet Solution, Example 5-13 (b) Graphical Determination of IRR

10. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-8 Investment-Balance Diagram for Example 5-13

11. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 5-2 Calculation of the Simple Payback Period (θ) and the Discounted Payback Period (θ') at MARR = 20% for Example 5-13 a

12. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-9 Graph of Cumulative PW for Example 5-13

13. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. Figure 5-10 Final Spreadsheet Model for Simple and Discounted Payback Period Methods

14. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE 5-3 Summary of Decision Rules

15. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE P5-23 Table for Problem 5-23

16. Engineering Economy, Sixteenth Edition Sullivan | Wicks | Koelling Copyright ©2015, 2012, 2009 by Pearson Education, Inc. All rights reserved. TABLE P5-24 Table for Problem 5-24