ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.24 : (a) The net present value of an engineering project is given by V. Let Q = summation of [ T / (1 + I) ^ N ] from N = A to N = B, where P = project cost, T = tax inflow, N = duration. If V = P + Q where P = -$1000, T = $275, I = 0.12 (means 12 % , capital cost of project per year), A = 1 year, B = 5 years, calculate the value of V. (b) The present value tax shields are W = $ (11.9725, 9.1486, 6.5579, 4.1811, 2.0005) in 5 beginning balances of an engineering project. Find the adjusted present value of the engineering project X, when X = V + (summation of the values of W).
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.24 : (a) Let ^ to be mathematical symbol for power. From N = A = 1 year to N = B = 5 years, Q = summation of [ T / (1 + I) ^ N ] = T { summation of [ (1 + I) ^ (-N) ] } = $275 { summation of [ (1.12) ^ (-N) ] } = $275 [ (1.12) ^ (-1) + (1.12) ^ (-2) + (1.12) ^ (-3) + (1.12) ^ (-4) + (1.12) ^ (-5) ] = $991.31. Then V = P + Q = -$1000 + $991.31 = -$8.6865. (b) X = V + (summation of the values of W) = -$8.6865 + $ (11.9725 + 9.1486 + 6.5579 + 4.1811 + 2.0005) = $25.1741. 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 |
What is a solvent?
Are there any special considerations to be taken into account for combustion ammonia?
What is screen analysis?
What is meant by surging in compressors?
Question 68 – Biochemical Oxygen Demand (BOD) could be calculated using the formula BOD = (DOi - DOf) (Vb / Vs) where Vb = Volume of bottle in ml, Vs = Volume of sample in ml, DOi = Initial dissolved oxygen in mg / L, DOf = Final dissolved oxygen in mg / L. (a) By using a bottle of Vb = 300 ml with sample Vs = 30 ml, find the BOD if DOi = 8.8 mg / L and DOf = 5.9 mg / L. (b) By using a bottle Vb = 600 mL with sample Vs = 100 mL, find the BOD if DOi = 8.8 mg / L and DOf = 4.2 mg / L. (c) Find the average BOD = [ Answer of (a) Answer of (b) ] / 2. (d) If the BOD-5 test for (a) - (c) is run on a secondary effluent using a nitrification inhibitor, find the nitrogenous BOD (NBOD) = TBOD - CBOD. Let TBOD = 45 mg / L and CBOD = Answer of (c).
What are the methods involved to test helium leak testing in a vacuum system?
What is chemicals?
1 Answers Thirumalai Chemicals,
What do you understand by wet bulb globe temperature?
Define "good" cooling tower water?
What is the Chemical Formula of Mineral Oil used in Transformer. It is Challenged for all Chemical Engineers.
6 Answers Ambuja, Oil and Gas Jobs,
COMPUTER PROGRAMMING FOR ENGINEERS - EXAMPLE 17.1 : By using Excel or other easiest programming package, explain how I, the integral of sin x dx from 0 to 3.142 could be approximated using random number. Find the exact value of I.
Question 55 - The differential equation is 3 dy / dt + 2y = 1 with y(0) = 1. (a) The Laplace transformation, L for given terms are : L (dy / dt) = sY(s) - y(0), L(y) = Y(s), L(1) = 1 / s. Use such transformation to find Y(s). (b) The initial value theorem states that : When t approaches 0 for a function of y(t), it is equal to a function of sY(s) when s approaches infinity. Use the initial value theorem as a check to the answer found in part (a).
Civil Engineering (5086)
Mechanical Engineering (4456)
Electrical Engineering (16639)
Electronics Communications (3918)
Chemical Engineering (1095)
Aeronautical Engineering (239)
Bio Engineering (96)
Metallurgy (361)
Industrial Engineering (259)
Instrumentation (3014)
Automobile Engineering (332)
Mechatronics Engineering (97)
Marine Engineering (124)
Power Plant Engineering (172)
Textile Engineering (575)
Production Engineering (25)
Satellite Systems Engineering (106)
Engineering AllOther (1379)