ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.20 : Assume an engineer buys a $1 bond in period T while the nominal interest rate is R. The inflation rate at T + 1 is anticipated to be I. (a) If the bond is redeemed in period T + 1, how much money will the buyer engineer receive, in term of R, which is not affected by inflation? (b) Find the present value, PV of the proceeds from the bond, in term of R and I. (c) If the bond is redeemed in period T + 1, calculate the real growth or real value of the money that the buyer engineer will receive, in term of r = real interest rate, which is affected by inflation. (d) From the answers in (b) and (c), find the values of x, y and z in the following Fisher equation : (1 + x) = (1 + y) / (1 + z), in term of r, R and I.

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Question 54 - There are 2 alternatives of investment. Choice 1 : A trader offers you an investment opportunity where your investment of A$15000 presently will be A$18000 after 4 years. Choice 2 : A bank offers you 5 % annual return for your initial investment of A$15000. Question a : What is the equivalent bank payment after 4 years? Question b : By using the concept of equivalence in engineering economy, which is the better choice, betwen 1 and 2, that will be more profitable after 4 years?

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How can you keep our seawater used for heat rejection clean before entering our heat exchangers?

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white rust formation over zinc plated and yellow passivated fasteners during CED painting. WHY?

0 Answers   Wheels India,

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What is the Chemical Formula of Mineral Oil used in Transformer. It is Challenged for all Chemical Engineers.

6 Answers   Ambuja, Oil and Gas Jobs,

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ENGINEERING ECONOMY - EXAMPLE 7.3 : There are 2 alternatives of investment. Choice 1 : A trader offers you an investment opportunity where your investment of A$15000 presently will be A$18000 after 4 years. Choice 2 : A bank offers you 5 % annual return for your initial investment of A$15000. Question a : What is the equivalent bank payment after 4 years? Question b : By using the concept of equivalence in engineering economy, which is the better choice, between 1 and 2, that will be more profitable after 4 years?

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Question 62 – The names of the flow streams could be represented by : H1 for first hot stream, H2 for second hot stream, C1 for first cold stream, C2 for second cold stream. Data of supply temperature Ts in degree Celsius : 150 for H1, 170 for H2, 30 for C1, 30 for C2. Data of target temperature Tt in degree Celsius : 50 for H1, 169 for H2, 150 for C1, 40 for C2. Data of heat capacity Cp in kW / degree Celsius : 3 for H1, 360 for H2, 3 for C1, 30 for C2. (a) Find the enthalpy changes, dH for all streams of flow H1, H2, C1 and C2 in the unit of kW. Take note of the formula dH = (Cp) (Tt - Ts). (b) Match the hot streams H1 and H2 with the suitable cold streams C1 and C2 to achieve the maximum energy efficiency.

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What are the various utilities of the process plant?

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What are some common causes of gas pipeline vibration 20 carbon steel line?

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how to reduce COD from plant waste water closed circulation system

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Question 33 – By using Excel program either on laptop or desktop PC, solve the differential equation dy / dx = -2y + x + 4 with h = 0.005, initial values : x = 0, y = 1. The 4th order Runge-Kutta method provides : y(N + 1) = y(N) + (1/6) (k1 + 2k2 +2k3 + k4), k1 = h [ -2y(N) + x(N) + 4 ], k2 = h { -2 [ y(N) + k1 / 2 ] + x(N) + h / 2 + 4 }, k3 = h { -2 [ y(N) + k2 / 2 ] + x(N) + h / 2 + 4 }, k4 = h { -2 [ y(N) + k3 ] + x(N) + h + 4 }. What is the value of y at x = 0.5?

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Why chlorine cylinders are laid down horizontally?

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