Future Worth - Fundamentals of Engineering Economics

[@EngineerInTrainingTV]

Hey @aggienica you know I posted a quote the other day on my Facebook page that you may relate to, I know I do. It's by Lyndon Johnson and says, “Yesterday is not ours to recover, but tomorrow is ours to win or lose.” What's in the past is the past, our mind is a powerful ally, and I believe you CAN conquer this goal through discipline, hard work, and perseverance. Keep up the good work and pushing onward!

[@golpar1519]

How did you consider the initial cost as an "A", when A, is not a single cost and it is a uniform cost?

[@TexasCowboy6]

You could use negative signs for each cost(initial cost and maintenance cost) and use a positive sign for the salvage value. Your answer will be negative and you would have to chose the larger future worth value of the two alternatives. If you keep the costs positive and the salvage value negative, then you pick the smaller future worth of the two alternatives. See their explanation here: w w w . engineerintrainingexam . com/forums/topic/future-worth-example-in-video/

[@justaman553]

when you say the larger value of the two alternative, which alternative are you refering to?

[@muhammadghumman9555]

anyone tell me can a final answer of future worth and annual equivalent amount will be negative? is it fine if the final answer for both coming negative?

[@aggienica]

Thank you very much. I bought the Review manual but it confuses me sometimes. This video is great. I failed this test twice and I'm taking it again. To be honest, I'm extremely nervous about taking it again for fear of failing it. I have exactly 3 months to prepare after a year pause.

[@johnaudu5388]

Hi. This was quite helpful, particularly the part about comparing unequal lives, just like is done for PW. I could have missed that! Thanks. However, my previous understanding was that the alternative with the higher FW is usually selected. You seem to think otherwise for this particular example. My guess is that you would still select the one with the higher FW if the initial investments are reasonably close, right?

[@nabilaabraham9503]

hey thereee! so i was wondering, why did you switch the signs at 8:12 in the final answer for F - shouldnt the 10,000 be positive and the 45000(1.9730) be negative?

[@krjg9809]

*This is what I did:* *-$45,000(F/P,12%,6) -$12,000(F/A,12%,6) +$10000* *Using the compound interest table we get answer as -$176,210.* *So this means the project is not feasible as its giving a loss.*

[@hashimrazasiyal]

i wondered for hours, how on earth the salvage value is negative and maintenance expenses are positive at the very same time... !

[@yahyamohammad6411]

me two

[@serhatyldz4790]

still

[@carlmarionmanlapaz4697]

@@serhatyldz4790 what were finding in future worth is cost of machine at that time so we subtract revenues

[@muhammadghumman9555]

anyone tell me can a final answer of future worth and annual equivalent amount will be negative? is it fine if the final answer for both coming negative?

[@maburaho26]

How can the future worth of the machine be more than the cost of the machine in the first place? The machine would have been worn down and break some parts here and there. I think this solution is wrong. I got a -176210 as a solution.

[@rahulj3265]

here we neglect inflation rate and taxes.

[@markel-masry2389]

he just flipped the signs. you can do it either way

[@TheMdblack]

Hello, i am so confused , i understand how u set up the problem. But i dont get why the salvage is negative, and the intial,maint is all positive? how can that be future worth if it is actually money you are loosing ? salvage is money u will game? it seems everything is backwards here. can someone Help me understand the thinking behind this ?

[@bl4ckm4mb4f0rlif5]

I don't recall coming across or inevitably being surprised by a counter intuitive sign reversal when it came to expenditures and inflow back when I took the course either. Hmm.. And I would be inclined to just go the intuitive way and pick alternative yielding the smaller negative number which would basically translate to : less costly alternative.... But the point of concern is- should there be a "Find Net F" question and there be a + and a - answer of the same value and I'd have to choose

[@Faisalhassan22]

ncees supplied reference handbook. Thats all i understood

[@muhammadghumman9555]

anyone tell me can a final answer of future worth and annual equivalent amount will be negative? is it fine if the final answer for both coming negative?

[@uzi1-g2x]

Even though this is right (depending on how you set it up). Wouldn't it be more helpful to state that this is evaluating the overall cost; hence making the salvage value negative. I would probably say that we are getting the future cost. That would make the positive values being costs.

[@uzi1-g2x]

none the less great video, thank you!

[@nirdeshjha9933]

i am unable to register on the website. i need the study materials. help me!!!

[@hasnajd8528]

Thank you so much. Just figured that the signs are opposite positive to negative in the present worth and future present worth. Like duh !

[@bl4ckm4mb4f0rlif5]

"Yesterday is not ours to recover, but tomorrow is ours to win or lose"

[@kboy9692]

What to dp if the annual is not given?

[@stuartmiller1260]

This is close but wrong. The total future worth looks at the losses from investing the $45000 initially (And its future equivalent if invested elsewhere), the revenue from the $12000 annually and the final income from salvaging at the end. the formula should be NFW = -$45000(F/P, i , n) + $12000(F/A, i , n) + $10000 = $18552.27

[@souvikmondal2402]

to hell with those page numbers :/

[@muhammadghumman9555]

anyone tell me can a final answer of future worth and annual equivalent amount will be negative? is it fine if the final answer for both coming negative?

[@sabankays1096]

@@muhammadghumman9555 yes of course

[@muhammadghumman9555]

anyone tell me can a final answer of future worth and annual equivalent amount will be negative? is it fine if the final answer for both coming negative?

[@EngineerInTrainingTV]

I’ll try and help you...can you restate your question so that I make sure I’m clear?

[@motorhead_jt21]

Is depreciation ignored for this process?

[@monmeillurami]

Love your name!

[@kipskip_546]

just in dick meier 😂

[@shafi_uz_zaman]

To hell with ur those reference book....

[@rashmitasamaddar2645]

very helpful

[@EngineerInTrainingTV]

Nabila, check out this forum post, and let me know if it helps clarify what you are looking for, thanks! engineerintrainingexam(dot)com / forums / topic / future-worth-example-in-video / [take out spaces and add (dot)]