Operations Management: Processes and Supply Chains, 12th Edition

Key Equations

Time Value of Money

1. 1. Future Value of an Investment:

   $$F=P{\left(1+r\right)}^n$$

2. 2. Present Value of an Investment:

   $$P=\frac{F}{{\left(1+r\right)}^n}$$

3. 3. Present Value Factors:

   $$P=F\left[\frac{1}{{\left(1+r\right)}^n}\right]$$

4. 4. Present Value of an Annuity:

   $$P=A\left(\text{af}\right)$$

Methods of Financial Analysis

1. 5. Straight-Line Depreciation:

   $$D=\frac{I-S}{n}$$