Single Payment Compound AmountSPCA

The SPCA factor is used to determine the future amount S that a present sum P will accumulate at i percent interest, in n years. If P (present worth) is known, and S (future worth) is to be determined, then Equation 9-2 is used.

The SPCA can be computed by an interest formula, but usually its value is found by using the interest tables. Interest tables for interest rates of 10 to 50 percent are found at the conclusion of this chapter (Tables 9-1 through 9-8). In predicting future costs, there are many unknowns. For the accuracy of most calculations, interest rates are assumed to be compounded annually unless otherwise specified. Linear interpolation is commonly used to find values not listed in the interest tables.

Tables 9-9 through 9-12 can be used to determine the effect of fuel escalation on the life cycle cost analysis.

Time Periods

Figure 9-1. Single payment compound amount (SPCA)

Time Periods

Figure 9-1. Single payment compound amount (SPCA)

Project Management Made Easy

Project Management Made Easy

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