Question 54 - 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, betwen 1 and 2, that will be more profitable after 4 years?
Answer Posted / kang chuen tat (malaysia - pen
Answer 54 - (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 View All Answers
Explain what information is needed to specify a mixer?
What is some common piping materials used to transport slurries?
Explain the advantages of using a ball mill over other conventional methods of crushing?
pleas tell me about chemical engineering apptitude test..
Is there a rule of thumb to estimate the footprint of a cooling tower during design phase?
What are some good strategies for curing tube vibration in shell and tube exchangers?
What are the different types of equipments for the conveyance of solids?
I am a Diploma Chemical Engineer by Nirma Uni; and BEng (Hons) Energy & Environmental Engineer by Napier Uni; Edinburg, UK. HPCL chemical engineering test will held on 14th July,09. So, Please send me some previous chemical engineering papers Objective types Or material to give the test.
what is the difference between car seal close/open valves and lock close/open valves?
Explain what is the best way to configure a bypass line in slurry services?
i am a prefinal year student of polymer engineering .could you please send the latest question papers regarding entrace exam.
When using a pumping loop to mix two miscible fluids in a tank, when can the content are considered well mixed?
What compounds are responsible for the odors that come from wastewater treatment plants?
How many grams per liter would there be in a 0.35 n (normality) citric acid solution?
What is the easiest way to extract hydrogen from water and the safest way to store it?