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CH.4 Gradient

The document discusses the concept of gradient in engineering economics, specifically defining arithmetic and geometric gradient. It explains that gradient refers to a revenue or disbursement that grows or decreases by a fixed amount each period. Examples of arithmetic and geometric gradient cash flow diagrams are provided to illustrate gradients that increase or decrease at a constant rate over time.

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Jenalyn Macarilay
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146 views8 pages

CH.4 Gradient

The document discusses the concept of gradient in engineering economics, specifically defining arithmetic and geometric gradient. It explains that gradient refers to a revenue or disbursement that grows or decreases by a fixed amount each period. Examples of arithmetic and geometric gradient cash flow diagrams are provided to illustrate gradients that increase or decrease at a constant rate over time.

Uploaded by

Jenalyn Macarilay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Pamantasan ng Lungsod ngMaynila

College of Engineering and Technology

ENGINEERING
ECONOMICS
Chapter 4
Gradient

Prepared by:
Engr. Jenalyn Macarilay
Electronics Engineering Department
Define and understand
the concept of gradient

Define, distinguish, and


ENGINEERING draw the cash flow
diagram of arithmetic and
ECONOMICS geometric gradient

Solve problems involving


arithmetic and geometric
gradient
GRADIENT

• Engineering economy problems sometimes


involve a series of receipts or disbursements that
increase or decrease in each succeeding period by
varying amounts.

• Gradient is a revenue or disbursement that grows


or decrease by a fix amount (G) each period by a fix
amount or rate.
GRADIENT

•Four possibilities for gradient

• Change in every succeeding period is constant. And there is no


disbursement on the first year.
• A>0 and G>0 means positive and increasing
• A>0 and G<0 means positive but decreasing
• A<0 and G>0 means negative but becoming less so
• A<0 and G<0 means negative and becoming more so
GRADIENT

ARITHMETIC GRADIENT GEOMETRIC GRADIENT


ARITHMETIC GRADIENT

The series is called uniform arithmetic gradient when


the change in every succeeding period is constant and
there is no disbursement at the first year.

The figure shows the cash flow diagram for arithmetic gradient
increasing or decreasing by a constant amount G in every period. The
G is the uniform gradient amount
REFERENC
ES

o Engineering Economy,
Blank and Tarquin, 7th
Edition, McGraw-Hill, 2012
o Engineering Economy,
Hipolito Sta. Maria
o Various online materials
THANK
YOU

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