Laserfiche WebLink
<br />(X) <br />c.:. <br />C"- <br />e--~ <br /> <br />c <br /> <br />The actual annuity must, therefore, be EO computed as to <br /> <br />meet these requirements. An example will make the method clear. <br /> <br />Let 1 be the co st of replacement. <br /> <br />Let X be the ennui ty. <br /> <br />The accumulation of an annuity of X for 35 years at <br />3% is approximately 60.5 X. <br /> <br />The debt incurred will be (1 - 60.5X). <br /> <br />The total amount of the debt at the end of 15 years <br />wi th interest at 3% will be: <br /> <br />1.558 (1 - 6o.5X) <br /> <br />The accUllU11a tion of an a;mui ty of X for 15 years is <br />approximately 18.6x. <br /> <br />This must equal the total amount of the debt; or, <br /> <br />18.6 X = 1.558 (1 - 60.5 X) <br /> <br />Solving for X we find <br /> <br />X = .0138 '* <br /> <br />which is, therefore, an annuity suited to meet the <br />condi tions assumed. <br /> <br />3. THE GENER<1.TING CHARGES. <br /> <br />The computation of these charges involves the determination <br /> <br />of (a) the cost of the generating macbine~ and equipment and its <br /> <br />probable useful life; (b) the cost to operate, mDintain and <br /> <br />replace machine~ and equinment; (c) an equitable distribution <br /> <br />of costs among the various allottees; and finally (d) a method <br /> <br />of computing the charges. <br /> <br />,.,., <br />