ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.14 : For a formula of y = [ 1 - 1 / (1 + r) ^ n ] / r, let y = present value, r = interest rate / year, n = number of years to future value of 1 : (a) Find a simple mathematical relationship of y as a function of r when n = 1 million years. (b) What is the present value of $10000, if the annual discount rate is 10 %, forever?
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.14 : (a) When n = 1 million years, it could be approximated as n = infinity. Then y = [ 1 - 1 / (1 + r) ^ n ] / r = [ 1 - 1 / (1 + r) ^ (infinity) ] / r = [ 1 - 1 / (infinity) ] / r = (1 - 0) / r = 1 / r. (b) For future value of $10000 and n = infinity forever, use the equation of y = 1 / r for future value of 1 and interest rate r. As r = 10 % = 0.1, then y = x / r = $10000 / 0.1 = $100000, where x = future value. 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.
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PROCESS DESIGN - EXAMPLE 21.2 : 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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