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?



ENGINEERING ECONOMY - EXAMPLE 7.3 : There are 2 alternatives of investment. Choice 1 : A trader off..

Answer / kangchuentat

ENGINEERING ECONOMY - ANSWER 7.3 : (a) For Choice 2, A$15000 x 1.05 = A$15750 after 1 year, A$15750 x 1.05 = A$16537.50 after 2 years, A$16537.50 x 1.05 = A$17364.375 after 3 years, A$17364.375 x 1.05 = A$18232.6 after 4 years. (b) The gain of Choice 2 > Choice 1 with A$18232.6 > A$18000, then Choice 2 is preferred. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Chemical Engineering Interview Questions

ENGINEERING MATHEMATICS - EXAMPLE 8.2 : In the US (United States), one barrel is equal to 42 US gallons and equivalent to 0.15898 cubic metres. One British barrel is equal to 36 Imperial gallons and equivalent to 0.163659 cubic metres. If an oil refinery in England sells 42 Imperial gallons of crude oil to a company in US, how much US gallons of crude oils has been sold?

1 Answers  


What types of pneumatic conveying systems are typically used?

0 Answers  


ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.26 : In a construction accounting for a biochemical processing plant, $A has been spent to date, and another $B is expected required to complete the construction project. The biochemical processing plant is expected to generate a total revenue of $C. Calculate the : (a) estimated total costs; (b) percentage completion of project; (c) total estimated profit; (d) profit to date.

1 Answers  


Which part of oil creates smoke? ( aliphatic, aromatic, paraffin)

1 Answers  


COMPUTER PROGRAMMING FOR ENGINEERS - EXAMPLE 17.3 : (a) The byte is the basic building block of computer data used in chemical engineering process simulation where 16 bits make a word, 4 bits make a nibble, 32 bits make a quad word and 8 bits make a byte. Then how many nibbles are there in a megabytes? (b) In computer data items, let : 1 bit - counts from 0 to 1, 8 bits - counts from 0 to 255, 16 bits - counts from 0 to A. What is the value of A? (c) In a binary system of 4 bits, if 1100 = 12, 1101 = 13, 1110 = 14, 1111 = 15, B = 16, then guess the value of B. (d) By using any form of tools, find the exact value of 2 power 64 or 2^64.

1 Answers  






HOW WOULD YOU CALIBRATE A ROTAMETER

2 Answers   IOCL,


What are some guidelines for sizing a psv for a fire scenario on a vessel in a refinery service?

0 Answers  


What is difference between overall heat transfer coefficient & individual heat transfer coefficient?

0 Answers  


Please describe tar, asphalt and bitumine

0 Answers  


What is the difference between multi grade filter and dual media filter?

1 Answers   Dalkia, Oil and Gas Jobs,


What are the design considerations for a piping system for the transfer of slurries?

0 Answers  


Does home used kerosene which is available in blue color can change its color after keeping number of years (say 8-10 years)? If yes, then in which color will it turned to? Will it change to yellow color or transparent color? Please reply with suitable technical suggestion/approach. Its an important question which was asked. I need a very strong technical reply. Please help me.

0 Answers   BP,


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4451)
  • Electrical Engineering Interview Questions Electrical Engineering (16632)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)