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ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.32 : In the calculation of the total cost of production of an engineering material, a linear equation Y = MX + C could be applied. Let T = total cost, F = fixed cost, V = variable cost, Q = quantity produced, W = variable cost per unit produced. Form a linear equation that relates : (a) T, F and V; (b) V, Q and W.
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CHEMICAL MATERIAL BALANCE - EXAMPLE 2.4 : A mixture consists of benzene (B), toluene (T) and xylene (X). At a temperature of 353 K, the data of vapor pressures : B : 754.12, T : 289.71, X : 91.19. Unit is mm Hg. The pressure P is 0.5 atm. The value of k for each substance is k = (vapor pressure) / P. (a) Calculate k for B, T and X. Let L / V = 0.65. (b) By using the equation V = F / [ (L / V) + 1 ], find the value of V when F = 100, then what is the value of L?
ACCOUNTING 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.
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