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.
1 1261ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.21 : The cost of building a biochemical processing plant is increasing due to inflation. Let I = inflation rate, R = nominal interest rate, r = real interest rate. According to Fisher Equation, (1 + r)(1 + I) = (1 + R). According to General Inflation Equation, R = r + I. (a) By assuming that both r and I are fairly small, prove by mathematical calculations that complicated Fisher Equation could be simplified into the General Inflation Equation. (b) By using 2 first order Taylor expansions in the linear approximation, namely 1 / (1 + x) ≈ (1 - x), (1 + x)(1 + y) ≈ 1 + x + y, show by mathematical calculations that (1 + r) = (1 + R) / (1 + I) could be approximated by r ≈ R - I.
1 1296ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.22 : An engineering company intends to produce a small piece of biochemical instrument for sales. Let A = overall fixed cost of production, B = variable cost of production per unit, C = selling price per unit, D = quantity of unit produced. Breakeven Analysis is used where revenue = cost. (a) Explain the role of Breakeven Analysis by using A, B, C and D. (b) Find the value of Contribution Margin in term of A, B, C and / or D. (c) At the breakeven point where revenue = cost, derive an equation of D as a function of A, B and C.
1 1274Write a program using string fuctions that accepts a price of an item and display its coded value. The base of the key is: X c o m p u t e r s 0 1 2 3 4 5 6 7 8 9
1159
hey, i am confused with ece n cse..both attract me the same..just that wich one has higher placements n pay pakages n which one has higher scope after doing mba??..reply urgently..
I am abscent to the external exam due to illness then what happen
In convection heat transfer, if heat flux intensity is doubled then temperature
Define extrued aluminum?
How is technology significant in the field of mechanical engineering?
what is the relation between pitch of steel and depth of slab?
need instrumentation job completed 1 year trainee ship in mnc pesticide company. now in search of job
What is tranformer differtial?
How to arrange a hous hold earthing system to keep minimum earth resistance( below 7ohms).
What is rate for brick masonry work of 1.0 m3 in cm 1:6?
can anyone send me the written test paper of Indian oil corporation ltd. My email id is pratuljakhmola@yahoo.com
List three types Level Gauges with their working principles
what is the effect of duration of earth quake on framed structures ?
Can we use a absolute encoder to show rpm of a motor ? what about the condition when power is off ? what is difference if a incremental one is used ?abanirout@gmail.com
What is the technical difference between On delay timer and a Star delta timer?