ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value Multiplication Rule, let PV = present value, Ra = interest rate for first discount, A = duration for first discount; Rc = interest rate for second discount, C = duration for second discount. Let PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] where ^ is the symbol of power : 3 ^ 2 = 3 x 3, 2 ^ 3 = 2 x 2 x 2. (a) For discounts involving 8 % / year for 3 years and 10 % / year for 9 years, find the value of PV. (b) If Re = interest rate for third discount, E = duration of third discount, form a mathematical equation of PV as a function of A, C, E, Ra, Rc, Re. Note : Discounts are available in the purchase of certain biochemical engineering instruments. (ii) Let R = nominal interest rate related to growth rate of money, r = real interest rate related to growth rate of purchase power. If I = inflation, where the unit of R, r and I is %, find the mathematical relatonship of r as a function of R and I.

Question Posted / kangchuentat

1 Answers
1898 Views
I also Faced
E-Mail Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.13 : (i) In the Present Value Multiplication Rule,..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.13 : (i) (a) Let Ra = 0.08, A = 3; Rc = 0.1, C = 9. Then PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] = [ 1 / (1 + 0.08) ^ 3 ] [ 1 / (1 + 0.1) ^ 9 ] = 0.33666. (b) PV = [ 1 / (1 + Ra) ^ A ] [ 1 / (1 + Rc) ^ C ] [ 1 / (1 + Re) ^ E ]. (ii) r = R - I. 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

QUANTUM BIOLOGY - EXAMPLE 33.5 : (a) In the measurement of the number of photons received by a plant during photosynthesis, quantum meter is used. At 8 AM, 11 AM, 12 PM, 2 PM and 4 PM of the same day, the measured readings of the meter are 10, 70, 60, 120 and 120 units. Find the mode, median and min of the readings of the quantum meter. (b) Microtubule is used to carry information in a cell. If the cross-sectional area of the microtubule has a diameter of 25 nanometers, find the volume of the microtubule of 1 nanometer in height. State the assumption of calculation.

1 Answers

Is there a rule of thumb to estimate the footprint of a cooling tower during design phase?

0 Answers

For a heat exchanger, will the overall heat transfer coefficient increase along with an increase in lmtd (log mean temperature difference) around the unit?

0 Answers

A cantilever beam of length L = 3 m carries a uniformly distributed load (UDL) of W = 20 N / m throughout the length. Calculate the bending moment, BM of the beam near the fixed end. What is the shear force, SF at this point? Let SF = -WL, BM = -LWL/2.

1 Answers

what is Vx-EHT(RED) complex chemical compound.

1 Answers Excel,

What is the best way to handle bend or turns in slurry piping systems?

0 Answers

How much maximum power can be generated by 320v, 10kg-cm synchronous motor if shaft is rotated mechanically at 50 to 60 rpm?

0 Answers

What is the meaning of the critical speed of a turbine, and what are its effects on the shaft line

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

What is are the main terms in Unit Operations? and what is its charecteristics?

8 Answers HPCL,

CHEMICAL ENERGY BALANCE - EXAMPLE 11.3 : For liquid benzene, the CP constants are : a = 129440, b = - 169.5, c = 0.64781. Reference temperature is 298 K. The temperature of benzene is 60 degree Celsius. Calculate the enthalpy of benzene by using the formula H = a (DT) + (b/2) (T^2 - TREF^2) + (c/3) (T^3 - TREF^3) where ^ is power, DT is temperature difference with TREF = 298 K. H is in J / kmol. DT = T - TREF.

1 Answers

What are some good tank mixing rules of thumb?

0 Answers

For more Chemical Engineering Interview Questions Click Here