Marvin Miller Garcia
Marvin Miller Garcia
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Equivalent Annual Cost (Tagalog)
This tutorial is a part of our series in Engineering Economics. Here we will be studying the concept of Equivalent Annual Cost or sometimes also called Equivalent Uniform Annual Cost. This Equivalent annual cost is normally used to analyze economic comparisons of two or more assets with differing lifespan.
May this video help you in your studies. Thank you!
Here are the problems solved in the video:
Problem 1:
Find the equivalent annual cost of a Php1,200,000 backhoe machine that costs Php50,000 to maintain annually and will have a salvage value of Php150,000 after 10 years if i = 8%.
Problem 2:
A working student wants to know what kind of backpack to buy given the following options:
Option 1: Option 2:
Cost = Php4000.00 Cost = Php 1600.00
n = 5 years n = 2 years
SV = Php250.00 SV = 0
Which bag should he buy to get the most out of his money if i = 5%?
Problem 3:
A restaurant owner wants to open a new branch. He is considering two options:
Option 1: Rent a place Option 2: Buy a lot and build
Rent = Php250,000/year Lot = Php2,500,000
Initial Renovation = Php400,000 Building = Php1,800,000
O&M = Php25,000 O&M = Php40,000
SV = 0 SV = Php3,400,000
Using Equivalent Annual Cost Method, which option is better if the source of fund and opportunity costs are not an issue and if i = 8% and the period being considered is 15 years.
Engineering Economics/ Equivalent Annual Cost or sometimes also called Equivalent Uniform Annual Cost
Engineering Economics/ Equivalent Annual Cost or sometimes also called Equivalent Uniform Annual Cost
Engineering Economics/ Equivalent Annual Cost or sometimes also called Equivalent Uniform Annual Cost
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ความคิดเห็น

  • @danzzz3869
    @danzzz3869 11 ชั่วโมงที่ผ่านมา

    Thank you Engineer! Galing niyo talaga mag explain lalo na sa CFD. doon talaga ako mas lalo na liwanagan. Sa quiz ksi namin bawal ang walang Cash Flow, matic wrong agad haha😂.. Thank youu ulit Godbless po.

  • @itanongmokaycolet
    @itanongmokaycolet 8 วันที่ผ่านมา

    Good evening po Engr., wala po ba kayo nung depletion? 😭

    • @Engr.miller
      @Engr.miller 5 วันที่ผ่านมา

      Hehe, sorry, wala po ako nun

  • @itanongmokaycolet
    @itanongmokaycolet 8 วันที่ผ่านมา

    Tomorrow na yung exam ko huhj this is very demure, very mindful, and very helpful.

    • @Engr.miller
      @Engr.miller 8 วันที่ผ่านมา

      Hello! Thank you po for your comment.

    • @pudolaldwinl.7839
      @pudolaldwinl.7839 7 วันที่ผ่านมา

      Coletttt❤

  • @jasaraneta
    @jasaraneta 8 วันที่ผ่านมา

    nagpakahirap pa akong maghanap andito kalang pala.

    • @Engr.miller
      @Engr.miller 8 วันที่ผ่านมา

      Hehe, buti po nakita niyo!

  • @angelopanlilio6598
    @angelopanlilio6598 9 วันที่ผ่านมา

    Best prof. Direct to the point

    • @Engr.miller
      @Engr.miller 8 วันที่ผ่านมา

      😅 salamat po!

    • @Engr.miller
      @Engr.miller 8 วันที่ผ่านมา

      😅 salamat po!

  • @dadaaan1487
    @dadaaan1487 12 วันที่ผ่านมา

    Hello po, ano pong book reference for engineering economics na tinatackle niyo po?

    • @Engr.miller
      @Engr.miller 12 วันที่ผ่านมา

      Hello po! Hehe, wala pong particular na book reference. Yung mga problems po ay sarili kong gawa, and yung solution is sarili ko na ring style based sa aking experience sa pagtuturo at pagsosolve sa mga past board exams. Of coarse, para sa principle, nangaling na yan sa ibat ibang videos sa youtube, mga research kay google, review books, turo nang teachers, at mga ilang text books na nabasa ko. Pinili ko nalang po yung mga sa tingin ko ay mas madaling maintindihan.

  • @cjmc3700
    @cjmc3700 13 วันที่ผ่านมา

    SOBRANG GALING NIYO PO TALAGA SIR DITO KO LANG PALA MAIINTINDIHAN MGA SUBJECTS KO EH ANLAKING TULONG PO . THANK YOU PO!

  • @cjmc3700
    @cjmc3700 13 วันที่ผ่านมา

    Merry Christmas and a prosperous New Year SIR ENGR.! ... Ano po pala ang ginagamit niyo sir sa paggawa ng mga presentations mo po 😊?

    • @Engr.miller
      @Engr.miller 12 วันที่ผ่านมา

      Hello po, Merry Christmas din!!! Power point po yan lahat, tapos gumamit na ako nang OBS para sa recording.

  • @shanisesuson6990
    @shanisesuson6990 16 วันที่ผ่านมา

    thank you sir hehehe

    • @Engr.miller
      @Engr.miller 15 วันที่ผ่านมา

      Thank you din po!

  • @p4stilan7700
    @p4stilan7700 17 วันที่ผ่านมา

    Sir ask ako bat di na lang e add lahat ng OM sa last questions mo sir, nalilito ako po kase maintain cost siya tas ginawa mong 5 yrs. yung b

    • @Engr.miller
      @Engr.miller 17 วันที่ผ่านมา

      Hello po, thank you for watching. Regaeding po sa OM, yun po kasing 2.5M yearly ay isang deffered annuity kaya ganyan po naging itsura niya sa cash flow diagram. Nagkaroon ng "a" at "b" para madistinguish yung amount niya at a certain period. Yung period "a" ay present amount niya sa 5th year, at yung "b" ay present amount niya sa period 0. You can watch my video po nang deffered annuity for more info. Salamat po

    • @p4stilan7700
      @p4stilan7700 17 วันที่ผ่านมา

      ​@@Engr.millerThank you po sir nagets kona

  • @laplacetransforms_
    @laplacetransforms_ 17 วันที่ผ่านมา

    engr huhuhuh galing mo po thanks

    • @Engr.miller
      @Engr.miller 17 วันที่ผ่านมา

      Salamat po!

  • @cjmc3700
    @cjmc3700 18 วันที่ผ่านมา

    bakit po di na kayo gumagawa ng videos apaka linaw pamandin kayo mag explain po

    • @Engr.miller
      @Engr.miller 17 วันที่ผ่านมา

      Hehe, busy lang po kasi sa aking baby at trabaho. Yaan mo po, gawa ulit ako pag may time. Aling topic ba gusto mo pala😅

    • @cjmc3700
      @cjmc3700 15 วันที่ผ่านมา

      @ ay sorry haha malinaw po kasi mga explanation niyo madali din po matandaan kasi Fluids and Hydraulics po kung kaya SIR ENGR. if may time po kayo hehe pero syempre mas priority si baby Godbless you and your family po !

  • @jeromevaldepena8845
    @jeromevaldepena8845 26 วันที่ผ่านมา

    sir may napanood ako, diba dapat pag compounded may magiging r/m matic yung i? Bat sa inyo rekta na? chineck ko rin sa ginawa ng prof ko. Same. Sa turo nyo lang hindi. Sana po masagot.

    • @Engr.miller
      @Engr.miller 26 วันที่ผ่านมา

      Hello, rekta na yan basta ang interest ay nakaeffective na. Pag nominal siya, dapat iconvert muna bago ilagay sa formula

    • @Engr.miller
      @Engr.miller 26 วันที่ผ่านมา

      Yun ang dahilan kung bakit yung ibang formula ay meron pang nilalagay na r/m.

  • @jim-f9o
    @jim-f9o 29 วันที่ผ่านมา

    meron po ba kayong monthly to yearly naman ma conversion for interest?

    • @Engr.miller
      @Engr.miller 27 วันที่ผ่านมา

      Baliktarin mo lang yung process, pero basically, it is one-peso-one-year analysis.

  • @jim-f9o
    @jim-f9o 29 วันที่ผ่านมา

    any formula po ba ang gagamitin sa annuity due is same lang magiging sagot?

    • @Engr.miller
      @Engr.miller 27 วันที่ผ่านมา

      Hello, yes any formula pareho lang ang lalabas. Same lang naman silang tatlo, nagkaiba lang nang form.

  • @jim-f9o
    @jim-f9o 29 วันที่ผ่านมา

    bakit po ang ginamit is one-to-one peso analysis? 26:50

    • @Engr.miller
      @Engr.miller 27 วันที่ผ่านมา

      Hello, of coarse naman, one-peso-one-year analysis basta nagcoconvert nang interest

  • @jim-f9o
    @jim-f9o 29 วันที่ผ่านมา

    need po ba talaga na ilagay yung mga amount sa future? ty po 11:52

    • @Engr.miller
      @Engr.miller 27 วันที่ผ่านมา

      No, you can also send them sa present, yun ang tinatawag na present worth analysis. Pero mas prefer ko lagi sa future, mas madali at mas simple

  • @ivansadiwa585
    @ivansadiwa585 หลายเดือนก่อน

    A=Php69,901.71 po yung nakukuha ko

    • @Engr.miller
      @Engr.miller 27 วันที่ผ่านมา

      Hello po, small difference naman, baka sa rounding off nalang nagkaiba

  • @JudeRaymundMarquez-hr8zs
    @JudeRaymundMarquez-hr8zs หลายเดือนก่อน

    solid sir, thank you po!

    • @Engr.miller
      @Engr.miller 27 วันที่ผ่านมา

      Salamat din po

  • @tokhangfhatayfhatay5879
    @tokhangfhatayfhatay5879 หลายเดือนก่อน

    sa shift solve po 29530.63 o baka may mali lang akong napindot😅

    • @Engr.miller
      @Engr.miller หลายเดือนก่อน

      Hello, malapit naman naman siya, so baka sa mga rounding off nalang nagkaiba.😅

  • @chill-ht2fl
    @chill-ht2fl หลายเดือนก่อน

    Si tatay digong bato?

    • @Engr.miller
      @Engr.miller 27 วันที่ผ่านมา

      LOL. hindi naman po, si Digong ay dating presidente, si Bato naman ay Senador 🤣🤣

  • @jhonlourencer.verceles9844
    @jhonlourencer.verceles9844 หลายเดือนก่อน

    Paano po pag sa present dadalin yung gradient?

    • @Engr.miller
      @Engr.miller หลายเดือนก่อน

      Edivide mo po yung Future amount sa (1 + i)^n para maging present

  • @NoynoyRobiato
    @NoynoyRobiato หลายเดือนก่อน

    Sir paano I solve Yong formula paramakoha Yong sagot?

  • @bryancaday1941
    @bryancaday1941 หลายเดือนก่อน

    sir 1403.65 naman po sagot sa book nong problem 5

    • @bryancaday1941
      @bryancaday1941 หลายเดือนก่อน

      book po ni matias arreola

    • @Engr.miller
      @Engr.miller หลายเดือนก่อน

      Hi, Well di naman nagkakalayu sagot, so malamang sa rounding off yan nagkaiba.

  • @xynnnsc9454
    @xynnnsc9454 2 หลายเดือนก่อน

    Hi po, I want to ask po what to use na formula for this question “Calculate the capitalized cost of a project that has an initial cost of P5,000,000 and an additional cost of P500,000 at the end of every 10 yrs. The annual operating costs will be P200,000 at the end of every year for the first 4 years and P300,000 thereafter. In addition, there is expected to be recurring major rework cost of P300,000 every 13 yrs. Assume i =12%.”

    • @Engr.miller
      @Engr.miller 2 หลายเดือนก่อน

      Hello, salamat sa tanong. You need to draw the cash flow diagram and solve from there. Hindi mo po masosolve ito kung wala kang cash flow diagram at hindi pweding formula lang.

  • @dadaaan1487
    @dadaaan1487 2 หลายเดือนก่อน

    Thank you po

  • @dadaaan1487
    @dadaaan1487 2 หลายเดือนก่อน

    Thank you po

    • @Engr.miller
      @Engr.miller 2 หลายเดือนก่อน

      Keep on watching po.

  • @judeaendino6818
    @judeaendino6818 2 หลายเดือนก่อน

    bakit po 0.00643?

    • @Engr.miller
      @Engr.miller 2 หลายเดือนก่อน

      Opo kasi yung effective interest per month is 0.643% or 0.00643

  • @veranojames3280
    @veranojames3280 2 หลายเดือนก่อน

    nalito po ako dun kung pano naging 14.783M

    • @Engr.miller
      @Engr.miller 2 หลายเดือนก่อน

      (1+0.08)^35 po

  • @karlharrisdechavez6323
    @karlharrisdechavez6323 2 หลายเดือนก่อน

    For CC3 in the last problem, why is there a need to put an initial OM in addition to the perpetuity?

    • @karlharrisdechavez6323
      @karlharrisdechavez6323 2 หลายเดือนก่อน

      Doesnt the perpetuity already include the first 20 years?

    • @Engr.miller
      @Engr.miller 2 หลายเดือนก่อน

      ​Nope, perpetuity iscalculated on an end of the period basis. So since these payments were calculated on the beginning of the period, so we need to add the OM of the first period which starts at period 0, as it will not be e Included in the perpetuity calculation.

    • @karlharrisdechavez6323
      @karlharrisdechavez6323 2 หลายเดือนก่อน

      @@Engr.miller how come we dont do this in other perpetuity problems like the previous ones you discussed?

    • @karlharrisdechavez6323
      @karlharrisdechavez6323 2 หลายเดือนก่อน

      @@Engr.miller like for example, on the 3rd problem. there are 2 perpetuities for the 2M and 16M. in that case you didnt add any initial payment like additional 2M and 16M

    • @Engr.miller
      @Engr.miller 2 หลายเดือนก่อน

      Hello, thanks again for your questions! In perpetuity, the interest of the initial cost is used to pay the perpetual payments per period. This means that the anual payments are made every end of the period. We didn't had to add any initial cost to the perpetuity in the other problems because their first payment landed on the end of the first term. But for the last problem, the perpetuity cash flow diagram shows that the first payment (meaning first OM as seen in time 36:03 of the video) was considered to be made at period 0, or the beginning of the first period. This will not be included in the perpetuity calculation if we use the formula and not add it in.

  • @linyange1732
    @linyange1732 2 หลายเดือนก่อน

    sir i have a problem. Can you please make a video with n is missing?

    • @Engr.miller
      @Engr.miller 2 หลายเดือนก่อน

      Hello, thank you for watching. Normally pag ang unknown ay ang n, inilalagay lang natin lahat ng given dun sa formula na binigay ko then shift solve na.

  • @joncedricbermudez3745
    @joncedricbermudez3745 3 หลายเดือนก่อน

    iba po lumalabas problem number 1, yung 5% niyo po is 0.005 imbes na 0.05 lang

    • @Engr.miller
      @Engr.miller 3 หลายเดือนก่อน

      Hello, please check nalang po, it is 0.5% not 5% thank you

  • @RamchandJumala
    @RamchandJumala 3 หลายเดือนก่อน

    Sir meron daw po rule basta yearly to monthly direct divide by 12 pero pag monthly to yearly is dadaan kapa sa equivalent rate formula?

    • @Engr.miller
      @Engr.miller 3 หลายเดือนก่อน

      Nope, not all the time ay pwedeng gawin yung devide 12 nalang. Kailangan maging compounded monthly muna bago mo edivide ng 12.

  • @gielmarbandoy9039
    @gielmarbandoy9039 3 หลายเดือนก่อน

    Problem#2 Ans: Php 2,064,100 Ang lumabas na final answer.

  • @patriciaperenal
    @patriciaperenal 3 หลายเดือนก่อน

    confused po sir don sa present worth na ginamit nyong formula ay hindi raised m+n??

    • @Engr.miller
      @Engr.miller 3 หลายเดือนก่อน

      Hi po! Dun po kasi sa period 65, yung payments na tig 10k monhtly ay hindi na deffered, kundi ordinary nalang. This is why we don't rely on the formula but on the cash flow diagram lagi pag engineering econ. So always refer po sa diagram. Thank you!

  • @gbptz
    @gbptz 3 หลายเดือนก่อน

    boss pano yung shift solve pag equation?

  • @chrystellyzetreyes3022
    @chrystellyzetreyes3022 3 หลายเดือนก่อน

    hello, tanong ko lang po. if hindi given si i, ano pong formula gagamitin?

  • @yasseredza5620
    @yasseredza5620 4 หลายเดือนก่อน

    More please 🥺

  • @kidkali3837
    @kidkali3837 4 หลายเดือนก่อน

    Hello po, baket po naging 1600000M yung future ih quarterly lng po yung nasa cash flow so multiply sa 4, 160000 thousand po value.

  • @myungshi7684
    @myungshi7684 5 หลายเดือนก่อน

    san po galing ang 6h?

  • @tochequijano8426
    @tochequijano8426 5 หลายเดือนก่อน

    Hindi po ba 0.06 divide 4 yun?

  • @pompeyjomuad4130
    @pompeyjomuad4130 6 หลายเดือนก่อน

    Napakalaking tulong nito engineer!

  • @morby.vinas0476
    @morby.vinas0476 6 หลายเดือนก่อน

    thank you sir!!

  • @jaranillargem
    @jaranillargem 6 หลายเดือนก่อน

    Paano naging 61,022.26..paano ehh calcu engineer?

    • @Engr.miller
      @Engr.miller 6 หลายเดือนก่อน

      Hello po, encode niyo po yan sa inyong calcu then shift solve

  • @MrBobz
    @MrBobz 6 หลายเดือนก่อน

    May typo po sa Problem 3. Option 2... SV must be 3,400,000. Nagamit nyo ay 3,500,000 huhuh.... I got 417,146.59

  • @johnzenpauldiza6775
    @johnzenpauldiza6775 6 หลายเดือนก่อน

    Hello Sir..hindi na po ba i mumultiply yung weight ng bouy at rock sa 9.81 30:50

    • @Engr.miller
      @Engr.miller 6 หลายเดือนก่อน

      Hello po, thank you for watching. No need po dahil kg naman ang mga ginamit na unit so maintain mo din yung kg na weight ng bouy. Pag minultiply mo pa yan sa 9.81, magiging Newton na

  • @menglimarrero4296
    @menglimarrero4296 7 หลายเดือนก่อน

    Engr pls next video bonds retirement

  • @jeirusrosales2769
    @jeirusrosales2769 7 หลายเดือนก่อน

    Thank you so much po, Engr. Miller! Finally may isasagot na sa exam. HAHAHA

  • @menglimarrero4296
    @menglimarrero4296 7 หลายเดือนก่อน

    Good day engr. How could it build a curve line if the d is having uniform value?

    • @Engr.miller
      @Engr.miller 7 หลายเดือนก่อน

      Hello, thank you for watching. Yes, it has to be a curve because of the presence of the interest rate.

  • @menglimarrero4296
    @menglimarrero4296 7 หลายเดือนก่อน

    Mabuhay engr. Miller Salamat sa contents mo Napakalinaw mag explain