Wo. 086 First Printing: January 1965 Revised: June 1981 Pundamentals of Ship Design Economics Tecture Notes by Harry Benford ons, Department of Naval Architecture ss and Marine Engineering 3 i College of Engineering w= The University of Michigan rant * Ann Arbor, Michigan 48109SYMBOLS AND ABBREVIATIONS Wherever applicable, the abbreviations used in this book are based on the standards of the Engineering Economy Division of the American Society for Engineering Education. a uniform annual return (revenue less operating costs) or annual re~ payments on a loan (returning capital plus interest) at uniform annual return after tax ARC. average annual cost (operating cost plus annual cost of capital recovery) ACCR annual cost of capital recovery (CRxP) ca compound amount factor with single payment (F#P) CRF or CR capital recovery factor (A+P) crt capital recovery factor after tax (A'+P) ver discounted cash flow rate of return e future sum of money I interest payment i interest rate (before tax) per annun compounded annually* interest rate after tax* L disposal value N number of years, generally the economic life, period of a loan, or depreciation period; also any year in the future jet present value of all cash flows discounted to the present NPV, net present value index (NPVtP) (cont) “These may be (a) mutually agreed upon rates, as in a loan, (b) minimum ac~ ceptable rates, as used in finding NPV, or (c{ internally generated returns from a profitable enterprise expressed as an equivalent rate of interest, an after-tax basis, this is called "yield" or “interest rate of return.sca SF sPpw principal (amount of a loan), investment, or present worth of future amount(s) present value of both investment and operating costs present worth factor or discount factor (P#F) required freight rate series compound amount factor (F#A) sinking fund factor (AF) series present worth factor (cumulative discount factor) ( tax rate annual operating costs (wages, repairs, fuel, insurance, overhead, etc.) diggerence or increment ati=